Low paid workers get $22.20pw pay rise

"It will, however, mean an improvement in the real wages for those employees who are reliant on [the minimum wage] and an improvement in their relative living standards", he said per The ABC.

If you pay your staff at Award level, the increase to minimum rates take effect from the first full pay period commencing after 1 July 2017.

"Moderate increases in minimum wages are seen everywhere to have very low or no negative employment impacts".

The national minimum wage now stands at $672.70 a week, after a $15.80 a week or 2.4 per cent increase previous year.

The Fair Work Commission has ruled that Australia's lowest paid workers will receive a 3.3% pay rise a week.

ACTU secretary Sally McManus said the commission's 59 cents rise in the hourly rate coupled with cuts to penalty rates was a "double hit" on workers and showed the system was "broken".

Justice Iain Ross announced the new national minimum wage to apply from 1 July will be $694 a week or $18.29 an hour, up 59c an hour.

"That research also suggests that the panel's past assessment of what constitutes a "modest" increase may have been overly cautious, in terms of its assessed disemployment effects".

Business groups had been pushing for "caution and restraint", with the Australian Industry Group hoping for a more modest increase of 1.5 per cent, or $10 a week.

However, the Australian Chamber of Commerce and Industry says it is a significant increase that risks the job prospects of vulnerable people in the labour market, and puts pressure on award-reliant small businesses and large employers such as retail and hospitality.

Ross said the gradual improvement in the Aussie economy has become an opportunity for the commission to "improve the relative living standards of the low paid".

The Fair Work Commission will hand down its annual minimum wage decision at 11am (AEST) on Tuesday.

The Expert Panel came to its conclusion based on new research, especially the RAND Report, which analysed all previous studies on the effect of the United Kingdom minimum wage on employment, hours and job retention.

"Our members are constantly experiencing significant cost pressures through global competition and advances in technology, therefore we believe this wage increase is unfavourable for all businesses operating in the retail sector", ARA executive director Russell Zimmerman said. They won't even get this increase because of this penalty rates cut.

  • Joanne Flowers