5.2% minimum wage rise to combat peaking inflation, Fair Work Commission announces

On July 1st, the national minimum wage was increased by 5.2% following a decision by the Fair Work Commission.

The announcement has been welcomed by unions and advocacy groups, who have been campaigning for a higher minimum wage to meet the needs of struggling workers.

"The Panel concluded that, given the current strength of the labour market, the increases it had decided to make would not have a significant adverse effect on the performance and competitiveness of the national economy."

With inflation expected to peak at 6%, the panel noted that lower-paid Australians are particularly at risk of being impacted by the sharp rise in petrol and living costs.

A 5.2% rise in the minimum wage should help compensate for inflation, without triggering a wage-price spiral or higher unemployment.