The change was announced last Friday and indicates that the minimum wage will increase to $23.23 per hour or $882.80 per week for full-time 38 hours a week working. This is great news for about 180,000 workers on the national minimum award, the rise will be 8.6%.
Last year the Fair Work Commission increased wages by 5.2%, affecting one in four workers in the national total, but that increase only comprised 10% of workers and did not contribute to the wage-price spiral.
The employment minister, Tony Burke has spoken out saying this decision by the commission was the best decision for workers they have ever made and will see significant benefits in the cost-of-living crisis.
Importantly, for the minimum wage, the FWC has stated it would end alignment between the national minimum wage rate and the C14 classification wage rate in Modern Awards, arguing that the c14 rate was too low and would no longer constitute a proper minimum wage safety net.
Unions have spoken out stating they are happy with the pay increase, but the same cannot be said for businesses, Sally Mcmanus the secretary of Australian Council Trade Unions stated, ‘This is an absolutely essential increase for all of the people in Australia who are struggling so hard at the moment just to survive, to pay their rent, to pay their groceries, to pay all of the basics,"
However, others disagree with the increase such as the Australian Industry Group which believes that the award rates were disappointing and can cause unemployment and underemployment to be pushed higher.