Minimum Wage in Australia Set to Rise by 3.75% from July

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Australia’s Fair Work Commission (FWC) announced a 3.75% increase in the national minimum wage to A$24.10 (US$16.05) per hour, effective July 1, aligning closely with inflation, as families face rising living costs, as reported by Reuters.


The increase will provide an additional A$33 (US$22) per week and A$1,721 (US$1,149) per year for approximately 2.6 million employees, or about 20% of the Australian workforce.


Although inflation has decreased compared to 2023, when a 5.75% increase in Australia minimum wage was granted, the FWC noted in its annual review that cost-of-living pressures have disproportionately affected low-income workers. 


The FWC remarked that it was not suitable to raise award wages significantly above the inflation rate at this time, mainly because labor productivity has not improved over the past four years.


Additional Information:

  • The 3.75% increase significantly exceeds the 2.8% rise suggested by businesses. 
  • In April, Australian consumer price inflation rose to an annual rate of 3.6%, the highest in five months, raising concerns that the next adjustment in interest rates could be an increase.
  • The FWC will also address gender undervaluation in specific awards, including early childhood educators and health professionals.

Decision Criticism:

  • It is also estimated that this decision will raise the national wage bill by approximately A$5.2 billion (US$3.47 billion) in the next financial year and will increase the full-time minimum wage by A$33.10 (US$22.10), bringing it to A$915.90 (US$610.85) per week.
  • This hike also may subject low-wage employees to higher risks of unemployment and underemployment.

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