Pay rise for lowest paid workers

Published 10:36am 15 June 2022

Pay rise for lowest paid workers
Words by Kylie Knight

The Fair Work Commission has handed down its annual wage review, moving to increase wages of Australia’s lowest paid workers in light of surging inflation.

More than 2.7 million workers will receive a 5.2 per cent pay rise.

The panel received submissions from the Federal Government, most state governments, parties that represent the interests of employers and employees, and other bodies.

The Australian Council of Trade Unions (ACTU) proposed a 5.5 per cent increase to the NMW and modern award minimum wages. Other parties also proposed increases, of varying amounts. Some argued that the Panel should not increase minimum wages at all.

The Australian Chamber of Commerce and Industry, Australian Industry Group and a number of other employer bodies proposed an increase to minimum wages of between 2.5 and 3 per cent.

“Inflation erodes the real value of workers’ wages and reduces their living standards. The low paid are particularly vulnerable in the context of rising inflation,” the decision said.

“In respect of the timing of these increases, the Act provides that, absent exceptional circumstances, variations to a NMW order and modern award minimum wages arising from a Review are to operate from 1 July in the financial year following the Review.”

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