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Minimum wage to rise

Minimum wage to rise

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Date Published : Tuesday, July 08, 2008

Around 1.3 million Australians could see their bank accounts boosted by $21.66 a week after the Australian Fair Pay Commission (AFPC) increased the minimum wage for low-paid workers, according to reports.

The rise falls short of the $26-a-week demand by the Australian Council of Trade Unions (ACTU) but is nevertheless more than double last year's increase of $10.26.

News.com.au says it is the third time the AFPC has changed the minimum wage. The new pay structure will take effect from October 1st.

The commission's chairman, Professor Ian Harper, told the site the increase would give Australia's lowest-paid workers a "real increase" in their disposable income when combined upcoming changes to tax and social security provision.

He added that the move was also an attempt by the AFPC to mitigate some of the effects that rising consumer prices were having on those at the lower end of the pay scale without adding to inflation.

"It is a decision that takes into account the state of the national economy and the circumstances of low-paid Australians," he commented.

Commenting on the decision, the ACTU told the Sydney Morning Herald that the increase "did not go far enough" - but that it was a step towards improving the lot of Australia's lowest-paid employees.

But employers groups have warned that increase could add to the pressures on businesses.

Heather Ridout of the Australian Industry Group told the publication that the combination of increased wages and other changes in income will result in take-home pay rising by around six per cent per for a single person, "well ahead" of Consumer Price Index growth.

Nevertheless, acting prime minister Julia Gillard said the decision was a fiscally responsible one.

When the rise takes effect, the minimum wage will be $543.78 a week.

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