What the FWC said about the minimum wage

What the FWC said about the minimum wage

Minimum wage workers are going to be seeing some more money on their cheques starting tomorrow. Advocates believe that paying a higher wage provides a better quality of life to workers and helps to spur consumer spending.

Commission president Iain Ross said there were signs Australia's economy and labour market were healthier than this time past year.

The Fair Wages Commission was established in October 2017 as an arms-length government resource to engage with the public to advise the government on an approach to achieve this $15 an hour goal with increases that are regular, measured and predictable.

The live-in camp leader minimum wage, per day, will increase 11.5% to $101.24.

Immediately following the FWC decisions, Australian Council of Trade Unions secretary Sally McManus said unions welcomed the increase, but that the minimum wage was still not a "living wage".

The commission said an increase of the size called for by unions risked reducing employment prospects for low-skilled workers.

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"Such adverse effects will impact on those groups who are already marginalised in the labour market and on households vulnerable to poverty due to loss of employment or hours".

The new minimum wage will be $719.20 a week or $18.93 an hour.

"Even though the economy is apparently strong, this decision will still leave many full-time workers living in poverty", he said.

Saskatchewan's minimum wage of $10.96 is now the lowest in Canada. However, the same study also found "robust evidence" that employers who raised the minimum hourly wages also reduced the amount they paid for their employees' health-care benefits to cover those added costs.

"It is out of step with wage movements across the economy, with inflation, and with the pressures that many businesses are under", chief executive Innes Willox said.

"It is a step towards a living wage", she said. "But we will not rest and will keep fighting until Australian workers have a living wage".

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