Get ready to take home more cash, Australia! From tomorrow, the national minimum wage will increase, benefiting around three million people.
This change comes after the Fair Work Commission’s decision to raise the national minimum wage and modern award minimum wages by 3.5%.
According to estimates, this increase will put more money in the pockets of millions of Australians from July 1.
A Much-Needed Boost for Low-Paid Workers
The current national minimum wage is $24.10 per hour, or $915.90 per week. With the 3.5% increase, this will rise to $24.94 an hour, or about $30 more a week.
Fair Work Commission president Justice Adam Hatcher explained that the decision was made to address the real value of wage rates, which had decreased since July 2021 due to the spike in inflation.
Inflation and the Real Value of Wages
Inflation has been a major concern, but with the Reserve Bank of Australia declaring it’s now “sustainably” within the target rate of 2-3%, it’s time to boost minimum wage payments above inflation.
The Australian Bureau of Statistics reported that inflation remains at 2.4%.
Reactions to the Decision
Australian Council of Trade Unions secretary Sally McManus praised the decision, saying it delivers a 1.1% real wage increase, one of the largest real wage increases the Fair Work Commission has awarded.
CreditorWatch chief economist Ivan Colhoun, however, warned that the increase could affect inflation, emphasizing the need for businesses to pursue productivity improvements.