Engineering Manager Salary: Where It Sits Against the National Line
The national full-time adult ordinary-time average, as measured by the ABS Average Weekly Earnings survey for May 2026, stands at $2,083.70 per week, or about $108,352 per year (multiplied by 52). This is the line that the site uses as a benchmark. For an engineering manager, the figure is likely to sit well above that line, but the ABS does not publish a specific salary for this occupation. Instead, we can look at the broader Managers category from the ABS Employee Earnings and Hours survey (May 2025), which reported average weekly total cash earnings of $2,800.90 for all managers. That equates to roughly $145,647 per year – about 34% above the national full-time average.
However, engineering managers are a subset of both the Managers and Professionals occupational groups. The ABS data shows that Professionals averaged $2,049.60 per week ($106,579 per year) in May 2025, while Managers averaged higher. Engineering managers typically require a degree in engineering and managerial experience, so their earnings are likely to fall between these two averages, but closer to the manager figure. Without a published median or average specifically for engineering managers, it is best to treat the manager average as a reference point.
Why State and Territory Matter
Location plays a major role in moving an engineering manager's salary off the national line. The ABS Average Weekly Earnings survey provides full-time adult ordinary-time earnings by state. Using the on-site figures (derived from the May 2026 release), the state averages are:
- Australian Capital Territory: $119,090 per year
- Western Australia: $115,825
- New South Wales: $109,658
- Victoria: $106,137
- Queensland: $106,064
- Northern Territory: $103,173
- South Australia: $102,450
- Tasmania: $96,008
An engineering manager in the ACT or WA can expect a premium over the national average, while those in Tasmania or South Australia may see lower offers. The cost of living, industry concentration (e.g., mining in WA, public sector in ACT), and local demand for engineering talent all contribute. For a detailed breakdown, see our States and territories page.
How Pay Is Set: Awards, Agreements, and Individual Arrangements
The method of setting pay also influences where an engineering manager's salary lands. According to the ABS Employee Earnings and Hours survey (May 2025), only 22.7% of all employees are paid solely by award, and that proportion is much lower for managers. Most engineering managers are covered by individual arrangements (38.5% of all employees) or collective agreements (34.6%). The average weekly total cash earnings for employees on individual arrangements was $1,876.50 across all occupations, but for managers it is far higher. The ABS table shows that managers on individual arrangements earn well above the all-employees average.
The national minimum wage, set by Fair Work from 1 July 2026, is $26.44 per hour, $1,004.90 per week, or about $52,255 per year on a 38-hour week. This is a floor that does not apply to most engineering managers, who earn multiples of that. However, award minimums for professional engineers (such as the Professional Employees Award) may set a base for some junior engineering managers, but senior roles typically exceed award rates.
Comparing to Medians and the Line
It is important to distinguish between averages and medians. The national full-time average of $108,352 is an arithmetic mean, which can be pulled up by high earners. The full-time median (from ABS Employee Earnings, August 2025) is about $90,532 per year, and the all-employees median is about $74,100. An engineering manager's salary is likely to be above both medians and above the full-time average. The manager average of $145,647 is a useful guide, but individual salaries vary widely based on experience, industry, and company size.
For a more personalised comparison, you can Place a salary on the line to see how it stacks up against the national average and state benchmarks.
Industry Context
Engineering managers work across many industries, including mining, construction, manufacturing, and professional services. The ABS does not provide industry-specific earnings for engineering managers, but the broader industry averages can give context. For example, the mining industry typically pays above the national average, while retail pays below. An engineering manager in mining in Western Australia could earn significantly more than one in manufacturing in Tasmania. Our Industry medians page offers further insight.
Tax Considerations
The ATO's 2026–27 resident tax rates apply: nil on the first $18,200, then 15% up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. Plus a 2% Medicare levy (before reductions). An engineering manager earning $145,647 would fall into the 30% bracket (up to $135,000) and then 37% on the excess. After tax and Medicare, the take-home pay would be around $105,000–$110,000, depending on deductions. This is well above the median household income.
Conclusion
While the ABS does not publish a specific "engineering manager salary", the available data for Managers and Professionals, combined with state averages and pay-setting methods, provides a solid framework. The national full-time average line of $108,352 is a useful benchmark, and engineering managers typically sit above it. Location and employment arrangements are the key factors that move the figure off the line. For more detailed comparisons, explore our Job medians and How the figures are set pages.