Australia's Fair Work Commission has handed down its annual minimum wage decision, granting a 4.75% pay rise to nearly 3 million workers. About 100,000 of the country's lowest-paid employees will receive a higher 6% increase. The ruling, announced by Commission President Justice Adam Hatcher, lifts the lowest ongoing wage rate from nearly $24.95 per hour to $26.44.
Unions had demanded a 6% increase for all minimum wage workers, citing last month's budget projection of inflation reaching 5% in the year to June. The decision comes amid economic pressures that Treasurer Jim Chalmers says are driving voters toward One Nation, according to separate comments reported by The Guardian.
The 4.75% increase applies to roughly 2.8 million workers on award wages, while a smaller group of the lowest paid get the full 6% lift. The new hourly rate of $26.44 represents a climb of just under 6% for those at the bottom of the wage scale. The Commission did not meet union demands for a uniform 6% increase.
The pay rise will affect nearly one-fifth of Australia's workforce, providing relief as household budgets strain under persistent inflation. Businesses face higher labor costs at a time when the Reserve Bank continues to weigh interest rate decisions. The ruling may influence broader wage negotiations across sectors.
Critics argue the increase may fuel further inflation if businesses pass costs to consumers, though proponents say it is necessary to maintain living standards amid rising prices.