Australia Set to Propose Minimum Wage Hike Tied to Inflation Rates
The Labor government in Australia is advocating for a minimum wage increase in 2024 in its submission to the Fair Work Commission’s 2023-24 Annual Wage Review, set to be revealed on March 28, as reported by Reuters on March 25.
The proposed rise is set for coping with the year’s inflation, addressing the ongoing challenges faced by low-income households in managing living expenses.
Despite the amount being smaller because of a decrease in inflation rates, it is set to prevent the decline of low-paid workers’ real wages, a stance maintained by the government for the past two years.
Additional Information:
- The Fair Work Commission (FWC) had increased the minimum wage by 5.75% in July 2023, as a response to rising living costs
- The raise at the time raised concerns about exacerbating inflation, yet no indication of a harmful wage-price cycle was witnessed.
- Inflation in the country decreased to 3.4%, a two-year low, after it had peaked at 8.4% and it is expected to further decrease by the Reserve Bank of Australia to 3.3% by June 2024.
- A pledge has also been made by the Labor government to provide further relief for living costs in the upcoming budget in May 2024, including tax cuts for all taxpayers starting from July 2024.
