The Fair Work Commission has bumped up the minimum wage by 5.75 per cent.
About 2.6 million Australian, or one in four workers on the national minimum or award rates, will benefit from the increase and are set to receive $22.60 an hour, or about $859 per week, when it comes into effect on July 1.
While it is not as much as the current rate of inflation, which sits at 6.8 per cent for the year to April, it will still ease some of the burden of the high cost of living.
Adam Hatcher, the Commission President says the increase will not add to inflationary pressures.
“We are confident that the increase we have determined will make only a modest contribution to total wages growth in 2023-24 and will consequently not cause or contribute to any wage price sprial,” Mr Hatcher said.
The increase has come in closer to the Unions demand of 7 per cent, and largely ahead of the business groups 3.5 per cent.
Australian Council of Trade Unions Secretary Sally McManus says while the Commission’s decision doesn’t keep up with the cost of living every little bit helps.
“The Fair Work Commission has only awarded about one per cent less than what we wanted.
“Obviously any extra money or all extra money is absolutely vital for all minimum wage workers,” Ms McManus said.