Today the Fair Work Commission approved a 2.6% increase in Australia’s minimum wage, which means the lowest earning workers in the country will receive $15.80 per week more.
The minimum wage will go up from $606.40 to $622.20 per week, less than the $30 increase the Australian Council of Trade Unions wanted but more than the $5.80 bump sought by Australian business groups.
Last year the minimum wage went up by $17.70 per week.
Justice Iain Ross said an expected increase in unemployment let to the commission’s decision, which will come into effect on 1 July.
“While the economic outlook remains favourable, GDP growth is expected to ease to slightly below trend in 2013/14 and the unemployment rate is expected to increase slightly,” he said, according to AAP.
“Inflation is expected to remain comfortably within the RBA’s target range of two to three per cent.
“In addition to these considerations, the superannuation guarantee increase to apply from 1 July this year has also been a moderating factor in our assessment of the adjustment that should be made to minimum wages.
“As a result, although it would not be appropriate to quantify its effect, the increase in minimum wages we have determined in this review is lower than it otherwise would have been in the absence of the superannuation guarantee increase.”
Read the full decision release here.
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