- The minimum wage will increase by 5.2 per cent to $21.38 per hour or $812.60 per week from July 1
- The raise is due to inflation which has seen higher living and energy costs
- The Fair Work Commission said the decision will affect more than two million workers
- Prime Minister Anthony Albanese has “absolutely welcomed” the decision
The national minimum wage will be increased by 5.2 per cent to $21.38 per hour or $812.60 per week.
The raise is due to inflation which has seen higher living and energy costs.
The Fair Work Commission said the decision will affect more than two million workers and will be put into place from July 1.
Prime Minister Anthony Albanese has “absolutely welcomed” the decision.
“It makes a difference to people who are struggling with the cost of living,” Mr Albanese told reporters.
President of the Fair Work Commission Iain Ross said the rising cost of living and bigger inflation jumps have pushed to increase the national minimum wage.
“Inflation erodes the real value of workers’ wages and reduces their living standards,” he said.
With the unemployment rate at 3.9 per cent, the lowest in almost 50 years, Mr Ross added that the adjustments will “not have a significant adverse effect on the performance and competitiveness of the national economy.”
Trade unionists said the increase is “reasonable and fair” while businesses warned the hike in wages would put more strain on operations and was a “significant risk to economy.”
The Australian Chamber of Commerce and Industry (ACCI) said the decision would add around $8 billion in expenses for businesses over the year which are already under pressure from a spike in input costs and a tightening labour market.