Story by Australian Correspondent Oscar Godsell.
Millions of Australians on minimum and award wages will receive a pay rise from July 1 following a decision handed down by the Fair Work Commission on Tuesday.
The commission’s expert panel revealed that the national minimum wage will increase by 3.5 per cent, or $0.84 per hour, to $24.94 per hour.
This will lift the weekly full-time wage to $947.95, or $49,294 annually—an overall increase of $1,666 per year for full-time workers.
In three years since Labor came to government, the National Minimum Wage has increased by $4.62 per hour, more than $175.00 per week and $9,120.00 per year, or a 22.7 per cent increase.
The change affects approximately 2.6 million workers, including those on modern awards, and comes amid ongoing cost-of-living pressures.
The Australian Council of Trade Unions (ACTU) had called for a 4.5 per cent increase to lift the minimum wage to $25.18 per hour.
Employer groups had argued for a more modest increase of 2.6 per cent, in line with the current inflation rate.
The Albanese government, which did not nominate a specific figure in its submission, urged the commission to deliver a real wage rise above inflation.
Employment and Workplace Relations Minister Amanda Rishworth said that the decision was a “win” for workers.
“I welcome the Fair Work Commission’s decision to increase the National Minimum Wage and award wages,” she said on Tuesday after the announcement.
“Our government believes that workers should get ahead with an economically sustainable real wage increase.
“A real wage increase provides further relief to our lowest paid workers who continue to face cost-of-living pressures.”
However, the Council of Small Business Organisations Australia (COSBOA) warned that the wage increase would negatively impact small businesses.
“Ultimately, someone needs to pay here and overwhelming that will be small business,” COSBOA CEO Luke Achterstraat said in a statement.
“The irony here is that our industrial relations system continues to be a drag on productivity, and that is bad for workers and businesses.”
Mr Achterstraat said the new Minister for Workplace Relations must make productivity the primary focus.
“We have repeatedly warned that higher wages without higher productivity is a disaster waiting to happen.
“To ensure that our children don’t endure a lower standard of living than us, we need to boost productivity – our workplace settings have a direct impact on this outcome.”
The increase will come into effect from July 1, giving a boost to low-paid workers, particularly casual employees.
The minimum wage was previously $24.10 per hour, or $915.90 per week, equating to an annual salary of $47,627.06 for a full-time worker.
