[Australia] Minimum wage increase as households battle rising cost of living

On June 2, Australia's independent wage-setting body raised the national minimum wage by 3.75 per cent, Reuters reports.

The increase is largely in line with inflation and comes as Australian households continue to face soaring living costs.

The minimum hourly rate will reportedly climb to A$24.10 ($16.05) from July 1, resulting in an extra A$33 per week for around a fifth of the Australian workforce (about 2.6 million employees).

According to the Fair Work Commission’s (FWC) annual review, cost of living pressures have had the greatest impact on low-income employees, despite inflation being considerably lower now than at this time last year when it awarded a 5.75 per cent increase.

However, the FWC report stated that it was not "appropriate at this time to increase award wages by any amount significantly above the inflation rate principally because labour productivity is no higher than it was four years ago."

In April, Australian consumer price inflation reportedly rose at an annual pace of 3.6 per cent - its highest level in five months - contributing to the risk that the next move in interest rates might be upward.

Source: Reuters

(Quote via original reporting)

On June 2, Australia's independent wage-setting body raised the national minimum wage by 3.75 per cent, Reuters reports.

The increase is largely in line with inflation and comes as Australian households continue to face soaring living costs.

The minimum hourly rate will reportedly climb to A$24.10 ($16.05) from July 1, resulting in an extra A$33 per week for around a fifth of the Australian workforce (about 2.6 million employees).

According to the Fair Work Commission’s (FWC) annual review, cost of living pressures have had the greatest impact on low-income employees, despite inflation being considerably lower now than at this time last year when it awarded a 5.75 per cent increase.

However, the FWC report stated that it was not "appropriate at this time to increase award wages by any amount significantly above the inflation rate principally because labour productivity is no higher than it was four years ago."

In April, Australian consumer price inflation reportedly rose at an annual pace of 3.6 per cent - its highest level in five months - contributing to the risk that the next move in interest rates might be upward.

Source: Reuters

(Quote via original reporting)