‘Worrying’ reality facing Aussie workers amid calls for raised minimum wage

A major change to low income Aussies’ pay packet is being called for amid claims too many are struggling to “keep their heads above water”.

A major Australian union is calling for the minimum wage to be increased by 5.5 per cent amid rapidly rising inflation.

Australian Council of Trade Unions Secretary Sally McManus made the pledge on Monday morning, saying the hike was the only way workers can “could keep their heads above water”.

“I am worried about people being paid less and cutting back on the basics,” she told Today.

“Inflation is now 5.1 per cent. Unions wanting 5.5 is reasonable in that circumstance.”

The ACTU initially called for a five per cent increase to the minimum wage.

Australia’s national minimum wage is currently $772.60 per week for a 38-hour week, or $20.33 per hour.

Ms McManus said the bump up was needed to ensure workers making the minimum wage had enough cash flow to cover basic living expenses.

Low income Australians are facing a rising inflation rate.

“One in four workers are affected by (minimum wage). We need everyone to get behind wages growth not just the union movement, not us fighting by ourselves,” she said.

“Low paid workers spend everything that they have got and if they have less to spend, which they do at the moment.”

Prime Minister Scott Morrison also attempted to tackle the issue while campaigning in Perth on Sunday.

This came after the Reserve Bank forecast Australian wages would continue to stagnate or decrease in terms of inflation until December 2023.

“Cost-of-living pressures are higher because of what we’re seeing in the global economy,” he said.

“That is what I have to deal with on my watch.”

The ACTU’S proposed minimum wage would be $21.45 and its change would impact more than two million low income Australians whose wages are linked to industry award.