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 raise the minimum wage award by 5.2% to $812.60 a week for a handful of industries in mid-June.
That works out to $21.38 an hour.
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However, the FWC delayed wage increases in industries affected by COVID in its initial decision.
From October 1, wage increases for workers under the hospitality award, the flight cabin award and the restaurant award, among others, came into effect.
Their weekly wages will increase by a minimum of $40.
With the typical monthly payment sent to workers by the 15th of each month, next Friday should mark the first time the wage increase is applied in full to affected workers.
Following the June decision, FWC chairman Judge Iain Ross said the cost of living was at the forefront of his decision.
“Given the sharp rise in the cost of living since last year’s review, the increases we granted 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 percent increase was the largest increase since 2006, and more than double last year’s 2.5 percent increase.
Unions, meanwhile, pushed for a 5.5 percent increase, which they said would avoid a real cut in workers’ wages given the effect of rising inflation.
“We teach that minimum wages and awards must rise to ensure that award-dependent households can cope with the rising cost of living they face and enjoy their fair share of productivity growth,” said the Australian Council of Trade Unions.
However, while Australians in these industries will see some extra money in their back pockets, inflation in the country is still raging.
The Reserve Bank of Australia warned again this week that consumer price index inflation would remain around seven per cent for the rest of 2022.
It came as the RBA raised the cash rate on Tuesday, by 25 basis points to 2.6 per cent.
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