Australia's Minimum Wage Increase for Lowest-Paid Workers | Australia Immigration Updates
Millions of Australian workers are set to receive a pay rise following the Fair Work Commission's announcement of a minimum wage increase. Starting July 1, full-time workers on the minimum wage will see an additional $33 per week, resulting from a 3.75% increase to minimum wages and awards.
This change will impact around one in five workers, or approximately 2.6 million people. Fair Work Commission President Adam Hatcher highlighted the cost-of-living pressures on low-paid, modern award-reliant employees as a key consideration for the increase. He noted that the adjustment aligns with the forecasted return of inflation to below 3% by 2025.
Over the past year, the consumer price index rose by 3.6%, slightly more than anticipated. The Commission aimed to keep the wage increase in line with the inflation rate, citing the modest growth in labor productivity over the past four years as a factor.
The federal government emphasized the importance of preventing real wages from declining, stating that tax relief should not substitute for wage increases. While the ACTU, the peak union body, advocated for a 5% raise, industry groups suggested an increase of less than 3%.
Additionally, the Commission pointed out that upcoming tax cuts and other cost-of-living relief measures in the federal budget would boost disposable incomes. However, these benefits might be tempered by the rise in the superannuation guarantee amount.
In 2023, the Fair Work Commission had implemented significant wage increases of 5.75% for awards and 8.6% for the national minimum wage, due to low unemployment, falling wages, and high inflation.
Following a gender equity research project, the Commission is set to initiate proceedings to address gender undervaluation in modern awards and roles typically dominated by women, including early childhood education, care work, social work, psychology, dental assistance, and similar professions.
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