Workers on the minimum wage will receive more than $1000 a week for the first time, but businesses and economists warn the pay bump could fuel inflation and more rate rises.
Industrial umpire the Fair Work Commission handed a 4.75 per cent pay boost to almost three million Australian workers on industry awards as part of its annual wage review on Tuesday.
But 100,000 minimum wage earners will receive an even larger six per cent pay rise to $26.44 per hour.
The decision comes with ongoing uncertainty around the Middle East conflict and how long it could keep upwards pressure on inflation.
Headline inflation was 4.2 per cent in the year to April, according to Australian Bureau of Statistics figures, but the Reserve Bank has forecast inflation to rise to 4.8 per cent by the end of June.
