Minimum wage increase

Leaders split on Fair Work Commission’s 3.5 per cent pay rise for 2.3 million Aussies

PART-TIME cleaner Madison de Been is one of more than two million Australians set to receive a little extra in their pay packet next financial year.

The Fair Work Commission yesterday increased the national minimum wage by 3.5 per cent, to $719.20 a week, effective July 1.

The increase amounts to an extra $24.30 for a 38-hour week — although Ms de Been says double that figure is needed for those struggling to make ends meet.

“If you’re working full-time, that’s five dollars a day, which would only cover a cup of coffee,” she said.

“I think $10 extra a day or $50 extra a week would make more sense.

“If you’ve got a mortgage, or with rent increasing, a lot of what you earn gets eaten up.

“It’s important the minimum wage keeps up with the rising cost of living, particularly electricity bills and things along those lines.”

Business and union leaders were split on the commission decision.

Employers claim the rise would restrict their ability to hire more workers in the coming years.

Australian Industry Group chief executive Innes Willox said Australia already had the second-highest national minimum wage in the world, with France in No.1 position.

“The 3.5 per cent minimum wage increase awarded by the Fair Work Commission has the potential to be a major disincentive to employment,” he said.

“It is out of step with wage movements across the economy, with inflation, and with the pressures that many businesses are under.”

Australian Council of Trade Unions secretary Sally McManus said the increase was a step in the right direction.

“The minimum wage should be pegged at 60 per cent of the median wage,” she said.

“This is the level set by the OECD — that is what’s required to ensure that every full-time worker in Australia can survive on their wage.

“All Australian workers need a pay rise, but none more so than the 2.3 million people who are now award reliant.”