Fair Work Commission announces change to minimum wage

The Fair Work Commission has handed down its annual wage review decision.

The minimum wage will increase by $40 per week — a 5.2 per cent increase.

It brings the minimum wage to $812.60 a week.

Award wages will grow by 4.6 per cent.

“The decision today impacts around about 2.8 million Australians, right across the country, who will now be seeing their pay increases from July 1, in most cases,” 9 News political reporter Jonathan Kearsley told Neil Mitchell.

“Business is going to be very, very concerned about this.”

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Managing director of Market Economics, Stephen Koukoulas says the Fair Work Commission had several considerations to juggle when deciding on the minimum wage.

He said the union movement wanted a 5.5 per cent increase, the government was seeking a five per cent increase and the business sector only wanted the minimum wage to go up by three per cent.

“I think it’s fair to say that low paid workers do deserve some sort of catch up after quite a few years where real wages have been very, very weak,” he told Neil Mitchell.

“A little bit of a catch up is ok, but given that it’s happening right now when we’ve got inflation pressures building … we’ve just got be treading a little bit carefully.”

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