Millions of Australians on award and minimum wages are set to find out how much more they will be paid with the Fair Work Commission’s decision due today. Source: Australian Financial Review.
But economists warn a too-generous rise could add to pressure on the Reserve Bank to push up interest rates next week.
The Fair Work Commission will broadcast online the result of its latest wage review at 10am AEST, which is expected to affect 2.67 million of the lowest-paid Australians.
Last year, the panel split its decision by awarding a 5.2 per cent increase to 180,000 workers on the lowest minimum wage, in line with inflation at the time.
As well, the umpire outlined an increase of $40 a week or at least 4.6 per cent for 2.6 million people on higher award rates.
The Albanese Government recommended to the commission that it “ensures the real wages of Australia’s low-paid workers do not go backwards”.
With inflation at 6.8 per cent in the year to April, this would require a wage rise of at least 6.9 per cent.
Westpac economists predicted an average pay increase of 4.6 per cent, which would mean “constant or steady” rather than an increasing contribution to wage inflation.
However, ANZ experts believe there will be a seven per cent nominal increase in the national minimum wage in line with headline inflation.
Treasurer Jim Chalmers told Parliament the Government will “respect whatever decision the independent umpire makes”.
Industrial umpire set to unveil minimum wage rise (By Lois Maskiell, Australian Financial Review)
Fair Work Commission’s decision on minimum wage increase due this morning (By Adam Vidler, 9news.com.au)