Anthony Albanese’s government set to support another minimum wage rise to keep up with inflation

Anthony Albanese’s government set to support another minimum wage rise to keep up with inflation

• The Albanese govt hinted it will back a minimum wage hike
• Employment Minister Tony Burke made the suggestion
• Unions have called for an increase to the minimum wage

By Jesse Hyland For Daily Mail Australia

Published: 23:05 BST, 28 March 2023 | Updated: 23:55 BST, 28 March 2023

Anthony Albanese’s government has hinted it will back a minimum wage increase in line with inflation, which is currently at 7.8 per cent.

Employment Minister Tony Burke said ‘our values haven’t changed’ when asked what would be in their submission to the Fair Work commission this Friday.

‘The thing that we must work our way through is there are some members of the workforce who have the least room to move with what’s been happening with inflation, and certainly the full award system goes all the way up to some people who are on significantly higher wages,’ he told ABC RN Breakfast on Wednesday.

‘Last year, we put forward the principle that the focus needed to be on the people on the lowest incomes because they had the least savings, they had the least room to move.’

‘You’d never photocopy a submission one year to the next and it’s never identical in every way. But as I’ve said, our values haven’t changed, and what you referred to there was a pretty strong value statement for the prime minister. ‘

Employment Minister Tony Burke (pictured) has hinted at supporting a minimum wage increase in line with inflation 

The value statement refers to the ideal that minimum wage workers shouldn’t go backwards in their wages.

Mr Burke’s response follows calls from union bosses to raise the minimum wage to match inflation. 

Australian Manufacturing Workers Union national secretary Steve Murphy told The Australian: ‘At a bare minimum, workers deserve wage rises that meet and beat inflation.’

‘It’s ridiculous that workers are being punished with interest rate rises.’ 

There are 2.8 million Australian employees who are employed on the minimum wage or award rates set to receive ‘catch up’ raises as inflation soars. 

A seven per cent pay rise on the national minimum hourly wage of $21.38 would put an additional $1.40 in a worker’s pocket, taking the new minimum wage to $22.87.

For a full time employee on minimum wage, this would account for an extra $56 per week, or $868.84.

The minimum wage was previously increased last year after the Albanese government put in a submission calling on the Fair Work Commission to match the 5.1 per cent inflation rate at the time

The Reserve Bank of Australia forecasts wages growth will hit 4.2 per cent year on year in 2023 – significantly less than the figure some union heads are demanding.

The minimum wage was previously increased from July 1 last year after the Albanese government put in a submission calling on the Fair Work Commission to match the 5.1 per cent inflation rate at the time. 

Minimum wage and low-paid workers on awards received a wage boost of up to 5.2 per cent – the most generous increase in 16 years.

It equated to a minimum rate of $812.60 per week, or $21.38 per hour.

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