Australian minimum wage increased by 5.2 per cent due to rise in the cost of living

The Fair Work Commission has announced a 5.2% increase to the National Minimum Wage (NMW) from July 1 in an effort to support low-paid workers who are "particularly vulnerable" in a time of rising inflation.

The new NMW will now be $812.60 a week, an increase of $40, or $21.38 an hour. Additionally, the Commission has also decided to increase modern award wages by 4.6% subject to a minimum increase for adult award classifications of $40 per week.

The award increases will take effect on July 1 with the exception of specific industries which include aviation, hospitality and tourism due to "exceptional circumstances", which will take effect on October 1. The dramatic increase of 5.2% comes as a result of the sharp rise in the cost of living, with inflation currently at 5.1% and expected to increase by the end of the year.

‍YEAR NMW increase CPI increase 2022, 5.2%-5.1%, 2021 2.5%-1.1%, 2020 1.8%-2.2%, 2019 3.0%-1.3% , 2018 3.5%-1.9%

Source: Fair Work Commission

‍We will see substantial Industrial Relations change under the ALP government.

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