Labor backs above-inflation wage bump for lowest-paid
The Australian government has backed an above-inflation wage rise for low-paid workers, with the goal of helping them catch up with the fall in real incomes during the post-Covid-19 pandemic price spike. The Fair Work Commission will determine the wage increase, with unions calling for a 5% increase and business groups warning that a pay rise above inflation could exacerbate price increases and lead to further interest rate rises.
The Australian government supports an above-inflation wage rise for low-paid workers. The government's submission to the Fair Work Commission's wage review calls for a pay bump consistent with underlying inflation returning to the Reserve Bank of Australia's target band. Unions argue low-paid workers are still behind from the previous inflation spike and need a 5% increase. Business groups warn a pay rise above inflation could worsen price pressures and fuel further interest rate rises. The Fair Work Commission will conduct hearings in May and hand down its decision in June. The pay rise will take effect from July 1.
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