Australia Sees Widespread Wage Hikes for Millions

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Millions of Aussie workers are about to see a bump in their pay packets, thanks to a new decision from the Fair Work Commission — and it’s being welcomed as a much-needed win for low-paid workers.

In its annual wage review, the Commission announced a 3.5% increase to both the national minimum wage and modern award minimum wages. The new rates kick in from July 1.

Right now, the national minimum wage sits at $24.10 an hour, or $915.90 a week. With the increase, that goes up to $24.94 an hour – adding just over $30 a week. While only a small number of workers are on the absolute minimum wage, the change is expected to affect up to three million Australians who are covered under various award wages.

So, what’s behind the decision? According to Fair Work Commission President Justice Adam Hatcher, it’s about catching up with inflation. He said workers on award and minimum wages have taken a real hit over the last few years due to the spike in inflation that started in 2021.

"The real value of their wages has dropped, and living standards have been squeezed," Hatcher explained. "We don’t want that loss to become permanent."

Now that inflation is more stable — sitting at 2.4% according to the latest ABS data — the Commission felt this was the right time to give workers a bit more of a boost. A 3.5% rise is just enough to claw back some of that lost ground without adding pressure to inflation again.

The decision was welcomed by the Australian Council of Trade Unions (ACTU), even though they had pushed for a bigger 4.5% increase.

“This decision delivers a 1.1% real wage increase – one of the largest the Commission has handed down,” said ACTU Secretary Sally McManus.

“It’s a real step forward. It means people on award wages will finally start to get ahead again, instead of falling further behind. It’ll help ease the pressure on weekly budgets.”

Last year’s increase was slightly higher at 3.75%, but this year’s ruling is seen as a sign that workers might finally be starting to benefit from more stable economic conditions.

All in all, it’s a welcome shift for many low-paid workers who’ve spent the last few years struggling to keep up with rising costs.

More updates to come on AusNewsLanka.