Pay rise for Aussie workers as minimum wage lifts

Key Australian workers will see a bump in their next pay packet after a wage boost flows through from Friday.

Australians in key industries will see a bump in their next pay packet, with a decision from the Fair Work Commission to boost the minimum wage now passed onto workers.

Hospitality workers, aircraft cabin crew, those on the restaurant industry award and more will receive the pay rise, initially due to come into effect from October 1, after the Fair Work Commission delayed pay rises in Covid-impacted industries in its initial decision.

In that report, the Fair Work Commission increased the minimum wage by 5.2 per cent, or $40 per week for some workers, from $20.33 to $21.38.

Workers covered by awards in 10 industries impacted by Covid, including hospitality staff, are in line for a pay rise this week.

Workers covered by select award agreements saw an increase of 4.6 per cent for wages above $869 per week and $40 per week for those below that amount.

The awards impacted by this week’s pay rise are those relating to aircraft cabin crews, airline ground staff, air pilots, airport employees, alpine resort workers, hospitality workers, marine tourism and charter vessel awards, registered and licensed clubs and the restaurant industry awards.

With the typical monthly payment sent through to workers by the 15th of each month, Friday marks the first time the pay rise comes through in full for everyone.

Aircraft cabin crews, airline ground staff, pilots and airport employees are among those set for a pay rise this week. Picture: NCA NewsWire / Damian Shaw

Up to 2.6 million Australians, or 23 per cent of the country’s workforce, are covered by higher awards

During the federal election, Anthony Albanese took the uncommon step of endorsing an increase to the minimum wage.

After the panel handed down its decision in June, the Prime Minister celebrated the decision, saying it “makes a difference to people struggling with the cost of living”.

“We said we didn’t want to go backwards. I welcome that. The truth is many of those people on the minimum wage are the heroes who saw us through the pandemic – these workers deserve more than our thanks,” Mr Albanese said.

“They deserve a pay rise, and today they got it.”

At the time of the landmark decision, Fair Work Commission president Iain Ross said the pay rises would provide relief for Australian workers most in need of protection.

Millions of Aussies will receive a pay rise due to the landmark decision by the Fair Work Commission. Picture: NCA NewsWire / David Geraghty

“Inflation erodes the real value of workers’ wages and reduces their living standards,” Mr Ross said.

“The lowest paid are particularly vulnerable in the context of rising inflation.”

The 5.2 per cent increase was the biggest increase since 2006 and more than double the 2.5 per cent handed down last year.

But while millions will benefit in some way from the boost in pay, the Reserve Bank of Australia this week reinforced their warning that consumer price index inflation would stay around 7 per cent for the rest of 2022.

The announcement came off the back of yet another interest rate rise, with a combination of higher cost of living and increasing interest rates expected to begin biting consumers in the next few months.