SWAN Hill’s lowest-paid workers have given gifted a 5.2 per cent pay increase in an attempt to help millions of people keep up with surging inflation.
The Fair Work Commission (FWC) on Wednesday announced the $40 per week pay increase ($812.60 per week or $21.38 per hour) to the national minimum wage and a 4.6 per cent increase to minimum award wages.
This increase will apply from July 1.
In handing down its decision, the FWC referred to the “sharp” rise in the cost of living and the strengthening of the labour market.
“At the aggregate level, labour market performance has been particularly strong. The unemployment rate has fallen to 3.9 per cent, compared to 5.5 per cent in April 2021 at the time of the last review. Measures of underemployment have also fallen. The improvement in the labour market is also forecast to continue in the period ahead,” the FWC panel said.
“At the time of last year’s decision, the CPI and the trimmed mean measure of inflation both stood at 1.1 per cent. The comparable figures now stand at 5.1 per cent (for the CPI) and 3.7 per cent (for the trimmed mean).”
The FWC said there was a “marked” difference in the inflation forecasts.
“Headline inflation is now expected to peak at around 6 per cent in the second half of this year, partly driven by higher petrol prices and sharp increases in the cost of new
dwellings,” it said.
“The panel concluded that the changes in the economic context weigh in favour of an increase in the NMW and modern award minimum wages.”
Holding up a $1 coin on Wednesday, Prime Minister Anthony Albanese said he “absolutely welcomes” the decision.
“$1.05 an hour, or $40 a week … makes a difference to people who are struggling with the cost of living,” Mr Albanese said.
It follows his government’s submission to the commission, which didn’t list a figure but called for minimum wage workers’ pay not to go backwards.
“We said we didn’t want to go backwards. I welcome that. The truth is many of those people on the minimum wage are the heroes who saw us through the pandemic – these workers deserve more than our thanks.
“They deserve a pay rise, and today they’ve got it.”
