The Fair Work Commission has handed down its minimum wage decision this morning and it's set to impact millions of workers.
The Fair Work Commission has handed down its minimum wage decision.·Source: Getty/AAP
Three million Aussie workers will see their wages rise after the Fair Work Commission handed down itsminimum wage decisionthis morning. Minimum award workers will get an increase of 4.75 per cent from July 1.
Currently, theminimum wageis $24.95 per hour and $948 per week. Following the increase, it will rise to $26.44 an hour and $1,004.90 per week.
Fair Work Commission President Justice Adam Hatcher said the determination of this year’s outcome had been “particularly challenging”, after the rate of inflation increased more than forecast and the economy faced the ongoing “wildcard” of the Middle East war.
Hatcher said it would take a wage increase of more than 5 per cent to close the real wage gap, but the Commission had “regrettably” determined it would not be “practicable or responsible” to award a real wage increase to award wage employees in the current “uncertain circumstances”.
“However, we consider that we should at least ensure that modern award-reliant employees generally are not worse off in real terms than they were as at 1 July 2025, and that we should also take additional measures to protect the position of the very lowest-paid workers under modern awards,” he said.
While minimum award workers will get a 4.75 per cent pay boost, the minimum wage will increase by nearly 6 per cent. The national minimum wage covers a small proportion of the workforce, but around a fifth of employees are paid at a minimum award rate.
While it had not nominated an exact figure, the federal government wascalling for a “substantial” increaseto the minimum wage.
Workers on the minimum wage and on awards need and deserve a decent real wage increase, Treasurer Jim Chalmers told ABC TV on Tuesday.
We want to see it go up further today, and that's because we recognise that higher wages and lower taxes are the best way to help working people with the cost of living.
The Australian Council of Trade Unions (ACTU) had been calling for asix per cent pay increase. This would have lifted the minimum wage to $26.45 per hour and the weekly rate to $1,004.88.
“One in four workers in Australia rely on the Annual Wage Review as their only way of getting ahead of price rises,” ACTU secretary Sally McManus said.
“Rent, mortgages, and bills are locked in, meaning if these workers’ wages fall short of inflation, they have no choice but to cut back on essentials like food and doctors’ visits.”
The Australian Chamber of Commerce and Industry were pushing for an increase of 3.5 per cent, arguing that underlying inflation was a better benchmark.
Headline inflationrose 4.2 per cent in the 12 months to April, while underlying inflation was 3.4 per cent.
The Fair Work Commission lifted the minimum wage by 3.5 per cent last year.
On Monday, it was reported Prime Minister Anthony Albanese has enjoyed a $57,000 pay rise, with his salary jumping 10 per cent since 2022.
