Millions of Australian workers will get a 3.5 per cent pay rise from July 1, following the Fair Work Commission’s annual review of the minimum wage and award agreements.
The commission’s decision increases the national minimum wage to $24.95 per hour or $948 per week, based on a full-time, 38-hour working week.
Inflation is currently at 2.4 per cent annually.
While the national minimum wage covers a small proportion of the workforce, about a fifth of all employees in Australia are paid at a minimum award rate.
Workers reliant on award wages are disproportionately female and more than half are employed casually, while two-thirds work part-time hours and more than a third are low paid.
This means the wages paid to award workers only make up 10.5 per cent of the national “wage bill”, the FWC noted.
Award workers are concentrated in the accommodation and food services, health care and social assistance, retail trade, and administrative and support services sectors.
3.5pc increase lands in between business and union calls
The FWC ruling was announced today after lobbying from various groups.
The federal government had argued for an “economically sustainable real wage increase” — while not putting a firm figure on its request, it indicated support for a wage rise above inflation.
Business groups including the Australian Retailers Association and the Australian Chamber of Commerce and Industry had called for no more than 2.5 per cent, arguing any more would put too much pressure on employers.
Australian Industry Group was slightly higher at 2.6 per cent.
Meanwhile, the Australian Council of Trade Unions had lobbied for a rise of up to 4.5 per cent.
The FWC boosted the minimum wage and awards by 3.75 per cent last year, after higher inflation pushed real wage growth further down in comparison.
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