US Edition
Labor Pushes Real-Wage Increase for Millions of Workers Despite Inflation Fears
The government seeks a wage increase aligned with inflation targets to ease financial hardship for 2.7 million low-paid workers amid rising fuel costs, the Reserve Bank said.
- On Thursday, the Albanese government submitted to the Annual Wage Review that the Fair Work Commission should award an "economically sustainable real wage increase" to 2.7 million Australian award workers.
- Employment Minister Amanda Rishworth and Treasurer Jim Chalmers argued workers deserve raises to ensure those on minimum and award rates "do not go backwards" amid rising cost-of-living pressures.
- The Australian Council of Trade Unions seeks a 5 per cent increase, while the Australian Chamber of Commerce and Industry proposed 3.5 per cent, warning wage growth without productivity gains risks worsening inflation.
- Treasury modelling warns Middle East conflict could push inflation toward 5 per cent, though Workplace Relations Minister Amanda Rishworth maintained wages are not a primary driver of current inflationary pressures.
- The Fair Work Commission will conduct hearings in May before handing down its final decision in June, with any approved wage increase taking effect from July 1.
15 Articles
15 Articles
Australian Labor Government Pushes for Minimum Wage Increase Above Inflation
The federal Labor government is urging the Fair Work Commission (FWC) to raise the minimum wage at a rate higher than inflation, which is currently sitting at 3.7 percent. The consumer price index (CPI) was 3.8 percent for 2025 and is expected to hit at least 4.2 percent by the middle of the year, depending on fuel prices. The FWC makes the decision each year, independent of government, but accepts submissions from anyone with an interest. Consi…
Government backs real wage increase to minimum wage
Australia’s minimum wage is back in focus, with the government signalling support for a real wage increase ahead of the Fair Work Commission’s June decision, as unions and business groups put forward competing claims. Independent economist Chris Richardson unpacks what a potential rise above inflation could mean for the economy. Meanwhile, the sharemarket dipped after a strong rally, with Darren Thompson from Equity Trustees breaking down the la…
Sydney Morning Herald
The AgeMinimum wage: Labor pushes real-wage increase for millions despite inflation fears
The federal government has requested the increase in its annual submission to the Fair Work Commission, but does not go as far as the country’s biggest union.
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