Today’s 5.75% award wage increase is a necessary boost for the lowest paid workers but does not keep pace with inflation.
The Fair Work Commission (FWC) has today explicitly said this increase “will consequently not cause or contribute to any ‘wage price spiral’”.
Key Points:
- Award wage increase of 5.75% is less than inflation, which is running at 7%
- FWC Commission have said explicitly this will not cause or contribute to a so-called ‘wage-price spiral’
- FWC acknowledges the increase “will not maintain the real value of modern award minimum wages nor reverse the reduction in real value which has occurred”
- Fair Work Commission also increased the national minimum wage by 8.65%
“This is a necessary boost, but insufficient to keep the lowest paid workers ahead of inflation,” said Dr. Greg Jericho, Policy Director at the Australia Institute’s Centre for Future Work.