Fair Work Commission to hand down Annual Wage Review, Aussies on minimum wage to get pay bump

Australians on the minimum wage are set to receive a pay increase on Tuesday, with Australia’s top union boss urging the body to boost annual full time pay by $2143.

An expert panel will hand down the decision in Sydney at 10am on Tuesday.

While the Albanese government has called for the independent arbitrator to provide an increase above inflation, currently at 2.4 per cent, the ACTU is lobbying for a much higher boost of 4.5 per cent.

For about 2.6 million Aussies on the minimum wage that would hike their hourly wage to $25.18 per hour, lifting the packet for an annual full-time worker by $2143 to $49,770.

The changes will come into effect from July 1.

The Fair Work Commission will hand down the pay rise decision for Australia’s lowest paid workers on Tuesday. Picture: NewsWire / Nicholas Eagar — The Fair Work Commission will hand down the pay rise decision for Australia’s lowest paid workers on Tuesday. NewsWire / Nicholas Eagar Credit: NewsWire

ACTU national secretary Sally McManus said low paid workers had “gone backwards” after years of high inflation and high interest rates.

She said any wage increase below 2.4 per cent would be “manifestly wrong and unfair,” and the new rate should allow people to “get ahead and catch up”.

“The Fair Work Commission couldn’t award increases that kept up with inflation when inflation spiked, but they did say that people needed to catch up, and it was just a matter of working out when things are more stable and favourable,” she told NewsWire.

“We say they’re more favourable now.

“All of those businesses got through that period of time by putting up their prices … but workers can’t adjust their pay like they these low paid workers are dependent on this (once-a-year) decision.”

ACTU secretary Sally McManus said any pay rise below inflation would be ‘manifestly unfair’. Picture: NewsWire / Monique Harmer — ACTU secretary Sally McManus said any pay rise below inflation would be ‘manifestly unfair’. NewsWire / Monique Harmer Credit: News Corp Australia

Employment and Workplace Relations Minister Amanda Rishworth has previously called for “an economically responsible real wage increase” while stating that the “setting of the minimum wage is a matter for the Fair Work Commission”.

“We do need to consider the economic conditions, but we also believe that in those economic conditions, workers deserve a real wage increase,” she said in May.

Currently, the minimum wage is $24.10 per hour, which equates to $915.90 or an annual full-time salary of $47,627.06.