Anthony Albanese’s government set to support another minimum wage rise to keep up with inflation

Anthony Albanese’s government has hinted it will support an increase in the minimum wage in line with inflation, which is currently at 7.8 percent.

Employment Minister Tony Burke said ‘our values ​​have not changed’ when asked what their submission to the Fair Work committee would be this Friday.

“What we have to work through is some members of the workforce have the least amount of room to move with what’s happened with inflation, and the entire pay system is definitely going all the way up to some people who are in significant trouble. higher wages,” he told ABC RN Breakfast on Wednesday.

‘Last year we put forward the principle that the focus should be on the people with the lowest incomes, because they have the least savings, they have the least room for manoeuvre.’

“You would never photocopy an entry from one year to the next and it is never identical in every way. But as I said, our values ​​have not changed, and what you referred to was a pretty strong value statement for the Prime Minister. ‘

The value statement refers to the ideal that minimum wage workers should not be allowed to lose their wages.

Burke’s response follows calls from union leaders to raise the minimum wage to match inflation.

Australian Manufacturing Workers Union national secretary Steve Murphy told The Australian: “Workers deserve at least wage increases that match and beat inflation.”

“It is ridiculous that workers are punished with interest rate hikes.”

There are 2.8 million Australian workers employed at the minimum wage or pay rates set to receive “catch-up” increases as inflation rises.

A seven percent raise on the national hourly minimum wage of $21.38 would put an additional $1.40 in a worker’s pocket, bringing the new minimum wage to $22.87.

For a full-time minimum wage worker, this would be an additional $56 per week, or $868.84.

The minimum wage was raised earlier last year after the Albanian government introduced a proposal calling on the Fair Work Commission to match the then-current inflation rate of 5.1 percent

The Reserve Bank of Australia forecasts wage growth to reach 4.2 per cent on an annual basis in 2023 – significantly less than the figure demanded by some union leaders.

The minimum wage was previously raised from July 1 last year after the Albanian government submitted a proposal calling on the Fair Work Commission to match the then inflation rate of 5.1 percent.

Minimum wage and low-wage workers on benefits received a pay rise of up to 5.2 percent — the most generous raise in 16 years.

It equated to a minimum rate of $812.60 per week, or $21.38 per hour.