More than 2.6 million Australian workers earning minimum wage are awaiting a potentially significant pay rise as the Fair Work Commission (FWC) prepares to announce its annual wage review on Tuesday. The review affects workers not covered by awards or enterprise agreements, with the updated minimum wage set to come into effect from July 1. The decision could raise the base full-time annual salary by over $2,000, depending on the outcome.
The Australian Council of Trade Unions (ACTU) has urged the FWC to approve a 4.5 percent wage increase, which would lift the minimum wage to $25.18 per hour. This adjustment would translate to an annual salary of $49,770, representing a gain of $2,143 from the current base of $47,627.06. ACTU Secretary Sally McManus emphasized the importance of the increase to offset inflation and maintain purchasing power for low-income workers.
Business Group Opposes Union’s Wage Proposal
The Australian Restaurant and Cafe Association, which represents employers of about 500,000 workers, has recommended a more modest 2 percent wage increase. The association includes large hospitality businesses like Merivale, Fink Group, and Van Haandel. It argues that a higher increase could impose pressure on struggling small businesses already grappling with tight margins and changing consumer behavior.
ACTU’s Sally McManus rejected the 2 percent proposal, stating that it falls below the rate of inflation and would effectively reduce workers’ real incomes. She criticized the employer group’s position, suggesting it undermines both employee livelihoods and the businesses themselves, as lower household incomes could hurt consumer spending in restaurants and cafes. McManus added that workers need more cash in hand to support these businesses.
Federal Government Backs Above-Inflation Increase
Relations Minister Amanda Rishworth has called for “an economically responsible real boost in earnings.” She reaffirmed that while the government does not set levels directly, it supports ensuring that workers are not falling behind due to rising living costs.
Rishworth highlighted the importance of considering broader economic conditions but said that in the current environment, employees should still benefit from meaningful growth in their income. The government’s position adds weight to the ACTU’s push, ahead of what is expected to be a closely watched decision. The Fair Work Commission will deliver its final ruling in Sydney, concluding a process that could shape financial trends across multiple sectors in the coming year.
