How much do you make in procurement and contract management?  

by | Jul 29, 2022 | Latest News, Procurement and Contracting

Photo by Mathieu Stern on Unsplash

Procurement salaries in 2022

Money. It’s one of the top considerations when you’re looking at a new role or career. 

Procurement and contract management jobs cover a wide range of salaries, depending on the role, location and sector you work in. 

But it’s not all about the dollars. You should also consider benefits, superannuation, leave conditions, and more, when choosing the right role for you. 

So what can you expect to get paid?

In this article, we look at average salaries for procurement and contract management roles, as well as in which cities you can find the highest-paid salaries, and other factors that determine how much you can earn.

What is the average procurement job salary?

When it comes to the average salary range, there are so many factors that impact how much you get paid, including:

  • Whether you work in the public or private sector 
  • Your location 
  • Your skills and experience

To help you get a feel for what procurement and contract management roles typically pay, we took a look at career information on the job site Indeed. 

Here’s an example of jobs and salaries in June 2022:

Source: Indeed

According to job ads on Indeed, salaries range from just over $67,000 up to a whopping $153,000, with most roles sitting between $80,000 and $115,000 per year.  

How does that compare to other sources?

According to au.talent.com, the average procurement officer salary in Australia is $93,205 per year, or $47.80 per hour. Entry-level positions start at $80,324 per year, with most experienced workers earning up to $116,436 per year. 

Now for the good news – procurement salaries are on the rise!

Procurement salaries in Australia and New Zealand have increased by 5.5%, according to the CIPS/Hays Procurement Salary Guide 2021. Almost half of professionals received a pay rise in the past 12 months, with 63% receiving a bonus.

Salary by Public vs Private Sector 

Another key factor playing a role in how much you get paid is whether you work in the public or private sector. 

Hays Recruitment’s Annual Salary Guide for FY 21/22 found that the private sector gets paid on average $144,934 compared to $136,276, which is a disparity of 6%. 

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Source: Hays Salary Guide 

But it’s not just about the money. When you dig deeper, the public service often wins with generous conditions. The public sector will often make much higher superannuation contributions than private sector jobs (often around 15%), not to mention the flexible work practices, excellent leave conditions and the mobility to move between agencies during your career.

That said, pay and conditions are determined at the individual agency level and will vary from one agency to the next. The best thing to do is check the agency’s Enterprise Agreement on their website to see what they offer. 

Salary by location

Where you work geographically also makes a difference to your salary, as Hays Recruitment’s Annual Salary Guide shows. 

The report reveals procurement salaries by state, and there’s a sizable difference depending on the city. 

Procurement officers in Canberra get paid the highest with a range of $85K to $100K followed by Sydney ($70K to $90K). Melbourne and Perth are a joint third with an average salary of $75K. 

Hobart and Darwin are at the bottom of the payscale with procurement officers earning between $56K to $66K.

The story is slightly different for procurement managers, who earn the most in Sydney ($150K average) followed by Melbourne and Perth ($145K), then Canberra ($143K). Darwin again pays the lowest at an average of $102K. 

Whilst these figures don’t distinguish between private and public sector employment, we know there is a higher proportion of government jobs in Canberra, compared to other places. We also know that there is only a 6% difference between private and public sector salaries, so generally you will find top candidates are paid roughly the same.

Maximise your earning potential in procurement and contract management

Education, skills and experience are just some of the things in your control that can increase your income potential. If you’re thinking of pursuing a role of procurement or want to advance your career, consider upskilling yourself with our range of courses, including a Certificate IV in Procurement and Contracting.

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