The largest union body in the country has hailed the Fair Work Commission’s decision to boost minimum wages for millions of workers.
The Commission’s annual review found that the national minimum wage, as well as modern award minimum wages, should all increase by 3.5 per cent.
Starting July 1 this year, there will be an increase in the national minimum wage. Currently set at $24.10 per hour or $915.90 per week, the 3.5% increase will raise it to $24.94 per hour, providing an increase of over $30 weekly.
Hatcher said that this had been due to the major spike in inflation which had begun in 2021.
The rise is intended to alleviate the financial strain on employees relying on modern award wages. The Chairman noted that living standards have been under pressure, making it challenging for low-income workers to cover their daily expenses.
Despite this increase, the Reserve Bank of Australia has indicated that inflation is under control, staying within the desired range of 2 to 3%. Therefore, it is deemed appropriate to raise minimum wage rates higher than the inflation rate, according to Hatcher.
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“We are concerned that if this opportunity is not taken in this Annual Wage Review, the loss in the real value of wages which has occurred will become permanently embedded in the modern award system and the national minimum wage, and a reduction in living standards for the lowest paid in the community will thereby be entrenched,” he said.
The Australian Bureau of Statistics reported in March that inflation was at 2.4 per cent, unchanged from the previous quarter.
Australian Council of Trade Unions secretary Sally McManus praised the decision, despite the ACTU backing a larger 4.5 per cent increase.
“This decision delivers a 1.1 per cent real wage increase, one of the largest real wage increases the Fair Work Commission has awarded,” McManus said.
“This wage increase means those who are paid award wages will start to get ahead again, easing pressure on their weekly budgets and part of the stress that comes from having to cut back on the basics.”
Last year, the commission increased the minimum wage by 3.75 per cent.
