One of Australia’s largest banks predicts that country’s 2.2 million minimum wage workers will see their pay raise for the first time in 12 years, though it will still fall short of inflation.
Prime Minister Anthony Albanese has said that his government will try to convince the Fair Work Commission to be more lenient in its annual wage review, now that fuel prices have gone up to over $2 per litre.
According to ANZ, the industrial umpire is more inclined to offer a 4.5 percent increase in the minimum wage beginning July 1.
This would be the most significant pay raise since 2010, with the biggest winners being young women in food and hospitality, as well as retail workers.
ANZ senior economist Catherine Birch said, ‘This would be the largest percentage increase since 2010 when there was some catch-up following the freeze in the wake of the GFC.’
‘But as it would be less than current headline inflation, it would still amount to a cut in real wages, especially as inflation continues to accelerate.’
A 4.5 percent boost in pay would mean that minimum-wage employees would earn $807.37 per week or $34.77 more than they are currently paid. This would increase their yearly compensation to $41,983 from $40,175.
Hourly pay rates would rise to $21.24, up by 91 cents from $20.33.