Minimum wage to lift by 6 per cent, award rate by 4.75 per cent

Australia's national minimum wage is set to increase by 5.97%, bringing the hourly rate to $26.44 from July 1. This adjustment, announced by the Fair Work Commission (FWC) as part of its annual wage review, will also see minimum award rates rise by 4.75%.

The new national minimum wage translates to $1,004.90 per week for a full-time, 38-hour work week, up from the previous $948. While the national minimum wage applies to a smaller segment of the workforce, the award wage increase will impact approximately 2.8 million employees, representing about 21% of all workers in Australia.

The FWC's decision follows a period of submissions from various stakeholders, including the government, business organizations, and trade unions. The Albanese government had advocated for a pay rise exceeding the current inflation rate of 4.2%. In contrast, the Australian Chamber of Commerce and Industry proposed a 3.5% increase, while the Australian Council of Trade Unions sought a 5% raise.

Workers reliant on award wages are often characterized by part-time employment, with more than two-thirds working reduced hours. The demographic also includes a significant proportion of casual employees and low-paid individuals. Key sectors heavily represented among these workers include accommodation and food services, health care and social assistance, retail trade, and administrative and support services.