Australians working in some key industries will see a few extra dollars in their pay packets from this week.
The Fair Work Commission handed down the decision to lift the minimum wage award by 5.2 per cent to $812.60 a week, for a handful of industries back in mid-June.
That works out to $21.38 an hour.
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However, the FWC delayed pay rises in COVID-impacted industries in its initial decision.
Pay rises for workers covered by the hospitality award, the aircraft cabin award and the restaurant industry award, among others, came into effect from October 1.
Their weekly pay will rise by a minimum of $40.
With the typical monthly payment sent through to workers by the 15th of each month, next Friday should mark the first time the pay rise comes through in full for affected workers.
Following the decision back in June, FWC president Justice Iain Ross said cost of living was at the forefront of their decision.
“Given the sharp rise in the cost of living since last year’s review, the increases we awarded last year have resulted in a fall in the real value of the national minimum wage and modern award minimum wages,” he said.
The 5.2 per cent increase was the biggest increase since 2006, and more than double the 2.5 per cent handed down last year.
Unions, meanwhile, pushed for a 5.5 per cent increase, which they said would prevent a real wage cut for workers given the effect of surging inflation.
“We submit that minimum and award wages must grow to ensure that award-reliant households can both meet the rising cost of living pressures facing them and enjoy their fair share of productivity growth,” the Australian Council of Trade Unions said.
However, although Australians in these industries will see some extra money in their back pocket, inflation in the country still continues to bite.
The Reserve Bank of Australia again warned this week that consumer price index inflation would stay around seven per cent for the rest of 2022.
It came as the RBA on Tuesday hiked the cash rate, by 25 basis points to 2.6 per cent.
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