Information Technology positions have recorded a 4.8 per cent salary increase according to this year's Australian Institute of Management Salary Survey.
For 2007/2008, IT recorded the highest salary increase by job, and across the country, salaries have risen overall by 4.7 per cent, despite the slowing national economy.
Australian Institute of Management's (AIM) NSW/ACT chief executive, Dr Jennifer Alexander, believes the IT salary growth is related to the skills shortage currently experienced by the industry.
However, while pay is important, "clearly there is a need for employers to ensure that employees have the right skills to take on more challenging roles," said Dr Alexander.
AIM only works with percentages and does not provide a mean salary figure.
Voluntary staff turnover rates have risen nationally to 13.3 per cent for 2007/2008, however IT staff turnover rates beat the average at 11.4 per cent.
"Some of those industries [included in the study] have comparatively high voluntary staff turnover rates. IT voluntary staff turnover rates are much better than the average," said AIM manager of research and HR consulting, Matt Drinan.
The survey also found that while large companies are paying more, they have tightened their purse strings on fringe benefits tax and super contributions.
Since the 2007 Survey, AIM noted a decrease in the proportion of large companies that are absorbing the cost of fringe benefits tax, and making contributions above the Superannuation Guarantee.
Performance-based pay has also expanded.
"Large companies are managing their costs and want to be more explicit around what they pay," said Dr Alexander.
"Given the increased operating costs incurred as a result of high levels of staff turnover, it is perhaps not surprising that a comparatively higher proportion of large companies are electing to use low financial risk variable reward incentive schemes, in order to improve business performance."
For all industries combined, New South Wales/Australian Capital Territory recorded the lowest salary rise of 4.3 per cent, followed by Victoria/Tasmania (4.5 per cent). Western Australia (WA) registered the highest salary rise of 6.4 per cent. Salary forecasts for the year ahead predict the highest rises for WA (5.7 per cent), followed by Queensland (5.1 per cent).