Anthony Albanese’s government has indicated a potential endorsement of a minimum wage increase in accordance with inflation.
Employment Minister Tony Burke was questioned regarding the government’s recommendation in its submission to the Fair Work Commission ahead of the decision on the minimum wage.
Burke reassured Australians on minimum wage that the Labor government’s “values haven’t changed,” as inflation continues to rise.
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Despite the current 7.4% inflation rate, a 7% pay increase to the national minimum wage would give workers an extra $1.40 per hour, raising the hourly minimum wage to $22.87.
Burke stated that minimum wage earners have “the least flexibility” as inflation continues to climb.
“Last year, we emphasized the importance of focusing on individuals with the lowest incomes because they had the least savings and the least room to maneuver,” he stated during an interview on ABC RN Breakfast on Wednesday.
“You wouldn’t simply photocopy a submission from one year to the next, and it’s never identical in every way. However, as I’ve said, our values haven’t changed.”
This would be positive news for the 2.8 million Australians employed on the minimum wage.
Anthony Albanese’s government has hinted it could back a minimum wage increase in line with inflation.
Credit: AAP
Full-time employees on the minimum wage would receive an increase of $56 per week.
As submissions for the next financial year’s minimum wage rise to the Fair Work Commission are about to close, unions continue to advocate for an increase above 7%.
In its most recent decision, the commission raised the minimum wage by 5.2% for the current financial year.
ACTU secretary Sally McManus stated that the union will finalize its submission in due course.
“When making our claim, the union movement will carefully consider all the pressures on the lowest-paid workers who are suffering through the biggest cost-of-living crisis in memory,” she said.
Albanese, before the last election, expressed full support for a minimum wage increase to alleviate the cost of living.
Finance Minister Katy Gallagher has called for workers to receive a sustainable pay rise but has not explicitly stated whether the government supports a minimum wage increase in line with inflation.
“For low-income workers, we want to ensure that they are receiving sustainable and affordable pay increases,” she stated during an ABC Radio interview on Monday.
“Last year, we did not specify a pay figure in our previous submission. I believe we argued that, particularly for low-paid workers, we would not want to see them regress, but we left it to the commission.”
– With AAP