The Reserve Bank governor has contradicted Labor’s claims that wages can continue to rise without productivity gains, as the Albanese government pushes for an above-inflation increase for 3 million workers on minimum rates this year.

Labor’s submission to the Fair Work Commission’s annual wage review calls for an “economically sustainable” lift to the minimum hourly rate of $24.10. It is the first time in four years the government has asked for a real increase to the minimum wage.