The Fair Work Commission has decided that minimum wages would rise by at least $40 per week, with the hourly pay rate rising from $20.33 to $21.38.
In light of the tight labour market and rapidly rising inflation, the commission announced its decision in the annual wage review on Wednesday. It increased the national minimum wage by 5.2 percent and award minimums by 4.6 percent.
The pay of at least 2.7 million Australians on the national minimum or awards will be set by the decision, which will come into effect from 1 July.
However, the commission decided that the rise in the aviation, tourism, and hospitality industries will be postponed to 1 October due to “special circumstances,” such as their slower recovery from the Covid crisis.
Anthony Albanese, the prime minister, hailed the move as a victory for his election-year pledge to “absolutely” support a pay increase in accordance with the 5.1 percent inflation rate.
“It makes a difference to people who are struggling with the cost of living, and it justifies our position that we took in making a different submission to the Fair Work Commission, that said we did not want people who are on the minimum wage to go backwards,” Albanese told reporters.
“Many of those people who are on the minimum wage are the heroes who saw us through the pandemic. These workers deserve more than our thanks, they deserve a pay rise, and today, they’ve got it.”
While employer organisations proposed more moderate increases of roughly 2.5 percent, unions requested a 5.5 percent increase in the national minimum wage from $20.33 to $21.45 per hour.