Australia’s minimum wage of $24.10 an hour will be increased by 3.5% from July, in a decision by the Fair Work Commission that delivers a real wage increase for the country’s lowest paid workers.
Last year’s decision was for a 3.75% increase.
Nearly 3 million employees have their pay set by an award and are directly affected by the annual minimum wage determination. The number of Australians paid the minimum wage, however, is a fraction of that – below 100,000 people, according to government estimates.
The decision means the new minimum wage is $24.95 an hour, or $948 per week.
The government had argued in favour of a decision that did not send workers’ wages backwards, and the final result falls between the competing demands from the peak union body and business groups.
Inflation was 2.4% in the year to March, and the Reserve Bank recently predicted it would ease to 2.1% by June. But the RBA also expects the end of government cost of living support payments, such as energy bill subsidies, will see inflation accelerate to 3.1% by mid-2026.
The ACTU argued in favour of a 4.5% lift, while business groups had made the case for an increase of around 2.5% or lower, arguing that firms were struggling with sharp increases in operating costs.
The Australian Restaurant and Café Association, in an industry with a large share of employees on awards, had argued the minimum wage should increase by no more than 2% this year.
More details to follow