Australia's Fair Work Commission has announced its decision on the minimum wage hike.

  • will boost pay for around 180K Australian workers
  • there will also be a 5.75% pay rise for workers on industry award rates, this will flow through to around another 2.7 million people.

The Commission said the decision was made in light of cost-of-living pressures being felt by Australia’s lowest-paid workers but would not have “discernable macroeconomic effects”

  • “The current combination of economic circumstances, namely low unemployment, falling real wages and high inflation , is very unusual and presents a particular challenge in this year’s review,”
  • “A further challenge is the expected sharp slowdown in economic growth over the next year.”

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The RBA is concerned to avoid a wage-price spiral . They'll take this into consideration in next week's decision.

The next Reserve Bank of Australia meeting is on June 6.

  • statement is due at 2.30 pm Sydney time, which is 0430 GMT and 12.30am US Eastern time

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Current cash rate:

rba cash rate 02 June 2023 22

The rise in wages is well below the inflation rate.