Australia's minimum wage rises by $13 a week to combat Covid-19 recession

The national minimum wage will rise by 1.75 per cent to $753.80 a week or $19.84 per hour from July 1. (Darrian Traynor/Getty Images)

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Australia's lowest paid workers will get a $13 a week pay rise. This means the national minimum wage will rise by 1.75 per cent to $753.80 a week or $19.84 per hour from July 1, the Fair Work Commission announced today. The rise falls well short of the three per cent increase to the minimum wage last year. Commission president Justice Iain Ross says it comes amid a significant downturn in Australia's economy driven by the Covid-19.

Mr Ross said, the shock to the labour market has been unprecedented. There are also significant downside risks to the economy ahead including the potential threat of a second wave of Covid-19 infections. The outlook, including the nature and speed of the expected recovery remains highly uncertain.

Peak union body the ACTU had argued for a four per cent rise this year. Business groups had argued the minimum wage should be frozen until mid-2021 to enable people impacted by the Covid-19 driven downturn to find jobs. The commission's decision directly affects 2.24 million low paid workers and indirectly affects many more. Industrial Relations Minister Christian Porter had opposed any substantial increase to what is already the world's highest minimum wage.