The Albanese government’s call for an above-inflation increase to the minimum wage for three million workers has emboldened unions to apply for a 4.5 per cent rise, almost double the inflation rate and despite flatlining productivity.

The ACTU will tell the Fair Work Commission’s annual wage review the increase is needed for award workers in hospitality, retail, care and health to make up for the decline in real wages over the past five years and to “get ahead of inflation”, which fell to 2.4 per cent last year.