I was just curious why pharmacist salaries in Australia are so low compared to their counterparts in the US/Canada. Even in the UK if you adjust for currency and health benefits and the like, pharmacists there compare favorably with the ones in the US/Canada. I read one article stating that nurses earn more than pharmacists there. If there any Australian sdnERs could you shed some light on this situation? Of course anyone is free to surmise and respond!
Pharmacist Salaries Low
- Thread starter Darkskies
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Is it still relatively low when you consider the cost of living in Australia?
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I'm an Australian pharmacist so I can suggest a few reasons.
Firstly they have single-payer healthcare so the money is coming from the government. Reimbursement and dispensing fees for prescriptions are actually not too bad. But the pharmacy owner keeps most of the profits. At least the law requires a pharmacist to own the pharmacy so this is how pharmacists can make good money. You also need a pharmacy permit to get paid by the government insurance scheme and these are limited to keep pharmacies profitable making it even more lucrative for the owners.
On the other hand, staff pharmacists don't get paid much. Probably a bit of supply and demand at play here. All the pharmacy schools are in public universities so they are easy to get into and afford, churning out a supply of lots of graduates. Then the number of pharmacies are limited by the government permits available, so the demand for pharmacists is limited too.
Why not just become a pharmacy owner? Well the limited pharmacy permits become very valuable so pharmacies can cost millions of dollars.
Hospitals are part of the socialized healthcare system so pharmacists there are employed by the government and salaries are a bit lower than in retail.
It's not all bad though. Benefits are pretty good. Four weeks vacation and you get paid 17.5% MORE while on vacation. 1.5x to 2.5x differentials for evenings, weekends and holidays. However some pharmacies close during these times because it is too expensive to staff. Minimum 9% employer superannuation (401k) contribution. Health insurance is through the government of course and included in your taxes.
Working conditions are good too. No drive-thrus. There's only one insurance plan and everyone's covered so there's no hassles. Pharmacists are required to counsel and have a limited formulary to prescribe (codeine-APAP, Sudafed, Diflucan, Plan-B, Gyne-Lotrimin, and others) so there's lots of patient interaction and they treat you with more respect. An upside of the low wages is that there's usually multiple pharmacists on duty at the same time. Technicians are abundant too and they are allowed to counsel patients (with training of course).
Firstly they have single-payer healthcare so the money is coming from the government. Reimbursement and dispensing fees for prescriptions are actually not too bad. But the pharmacy owner keeps most of the profits. At least the law requires a pharmacist to own the pharmacy so this is how pharmacists can make good money. You also need a pharmacy permit to get paid by the government insurance scheme and these are limited to keep pharmacies profitable making it even more lucrative for the owners.
On the other hand, staff pharmacists don't get paid much. Probably a bit of supply and demand at play here. All the pharmacy schools are in public universities so they are easy to get into and afford, churning out a supply of lots of graduates. Then the number of pharmacies are limited by the government permits available, so the demand for pharmacists is limited too.
Why not just become a pharmacy owner? Well the limited pharmacy permits become very valuable so pharmacies can cost millions of dollars.
Hospitals are part of the socialized healthcare system so pharmacists there are employed by the government and salaries are a bit lower than in retail.
It's not all bad though. Benefits are pretty good. Four weeks vacation and you get paid 17.5% MORE while on vacation. 1.5x to 2.5x differentials for evenings, weekends and holidays. However some pharmacies close during these times because it is too expensive to staff. Minimum 9% employer superannuation (401k) contribution. Health insurance is through the government of course and included in your taxes.
Working conditions are good too. No drive-thrus. There's only one insurance plan and everyone's covered so there's no hassles. Pharmacists are required to counsel and have a limited formulary to prescribe (codeine-APAP, Sudafed, Diflucan, Plan-B, Gyne-Lotrimin, and others) so there's lots of patient interaction and they treat you with more respect. An upside of the low wages is that there's usually multiple pharmacists on duty at the same time. Technicians are abundant too and they are allowed to counsel patients (with training of course).
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That's very interesting pezdispenser. Thanks.
Is it true that staff pharmacists earn less than nurses? I read somewhere that there are ample jobs for pharmacists in Australia so based on that article it seems like the demand for pharmacists is reasonable. Why then is the pay still low? What kind of a lifestyle does a pharmacist enjoy in comparison to other professions or even just the general populace? Thanks so much,
Darkskies.
Is it true that staff pharmacists earn less than nurses? I read somewhere that there are ample jobs for pharmacists in Australia so based on that article it seems like the demand for pharmacists is reasonable. Why then is the pay still low? What kind of a lifestyle does a pharmacist enjoy in comparison to other professions or even just the general populace? Thanks so much,
Darkskies.
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Without the direct supervision of a pharmacist? Like the pharmacist not actually standing there ready to correct the pharmacy technicians while they counsel the patient?
Where chains exist, then pharmacists usually in short supply. Where ownership of pharmacies restricted, then surplus of pharmacists. Why?
Well proprietors will tend to work long hours and forgo holidays and try to work through sickness. Employees expect company benefits of sick pay, holidays and regular working hours. A chain pharmcy will therefore need more pharmacists than an independent.
This has all worked to my personal advantage. When I started out as a relief (locum) pharmacist, I would always have to work a complete week. Last 10-15 years have seen most locums working on a daily basis and this means I was able to wind down as I got older ie 73-74. Last year when I was 75, just worked Saturday mornings, Sunday rotas and the occasional weekday. I retired completely on Jan 1st.
johnep
Well proprietors will tend to work long hours and forgo holidays and try to work through sickness. Employees expect company benefits of sick pay, holidays and regular working hours. A chain pharmcy will therefore need more pharmacists than an independent.
This has all worked to my personal advantage. When I started out as a relief (locum) pharmacist, I would always have to work a complete week. Last 10-15 years have seen most locums working on a daily basis and this means I was able to wind down as I got older ie 73-74. Last year when I was 75, just worked Saturday mornings, Sunday rotas and the occasional weekday. I retired completely on Jan 1st.
johnep
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Salaries for pharmacists in public hospitals are fixed: http://www.health.qld.gov.au/hrpolicies/wage_rates/hp_wagerates.pdf. Staff or clinical pharmacists are level HP3 from A$52k to 79k plus 12.5% employer superannuation (401k) contribution and you get a bump in sub-level each year. A senior or specialized clinical pharmacist would be level HP4 from A$85 to 91k. Assistant Director and Director of Pharmacy are HP5 and 6 up to A$110k.
Similar deal for nurses: http://www.health.qld.gov.au/hrpolicies/wage_rates/nursing.asp. Assistant in Nursing starting out at A$41k to Nurse Practitioner up to A$97k. But I believe nurses have more opportunity for overtime, load up on shift differentials or work for temp agencies so they could very well earn more than pharmacists.
Overall, pharmacist salaries are on the low side for any professional career. Healthcare is simply not run as a hugely profitable industry so there isn't much money in it. At least you are not burdened by tuition debt because it only costs about A$6,000/yr x 4 yrs (interest free loans available) after high school to get the Bachelor of Pharmacy degree.
I would say the lifestyle pharmacists can afford is about average. Cars are pretty expensive--something like a Toyota Corolla is about A$22k or around 1/3 of your annual gross salary. Housing is about the same as the US, that is, highly variable depending on location. Everyone can live comfortably because you don't have to worry about paying for basic essentials like healthcare or schools. But if you correlate your standard of living with your discretionary spending power, then pharmacists are about average.
Similar deal for nurses: http://www.health.qld.gov.au/hrpolicies/wage_rates/nursing.asp. Assistant in Nursing starting out at A$41k to Nurse Practitioner up to A$97k. But I believe nurses have more opportunity for overtime, load up on shift differentials or work for temp agencies so they could very well earn more than pharmacists.
Overall, pharmacist salaries are on the low side for any professional career. Healthcare is simply not run as a hugely profitable industry so there isn't much money in it. At least you are not burdened by tuition debt because it only costs about A$6,000/yr x 4 yrs (interest free loans available) after high school to get the Bachelor of Pharmacy degree.
I would say the lifestyle pharmacists can afford is about average. Cars are pretty expensive--something like a Toyota Corolla is about A$22k or around 1/3 of your annual gross salary. Housing is about the same as the US, that is, highly variable depending on location. Everyone can live comfortably because you don't have to worry about paying for basic essentials like healthcare or schools. But if you correlate your standard of living with your discretionary spending power, then pharmacists are about average.
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The technicians are only under the general supervision of the pharmacist. You try to keep them within ear-shot and you are responsible to train them on what they should and should not do. Technician certification proprams include training in their responsibilities.
Mostly they handle OTC sales, called "Pharmacy Only Medicines" because they cannot be sold in supermarkets, gas stations, etc. In some states, they are kept BEHIND the counter so customers must consult the staff to purchase them.
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I asked a CVS pharmacist I am shadowing if she thinks CVS would ever expand into another country and she said she strongly doubts it. Pharmacy practice is too different in other countries. I am guessing it is probably not as profitable. I have noticed working at CVS their cash customers are by far the most profitable. Cash customers give CVS $20-30 for a lisinopril RX where as an insurance company would probably only give like $5-10. The wholesale cost of the drug is probably not more than $1.
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Oh, now I see. It's not that much different from over here then.
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