Australia’s Fair Work Commission (FWC) has announced an increase to the national minimum wage in a bid to ease cost-of-living pressures on the country’s lowest paid workers.
The FWC made the announcement on Friday June 2, stating that there will be an 8.6% minimum wage increase and a 5.75% lift for award workers, starting from the first full pay period on, or after, July 1.
The new national minimum wage will be $23.23 per hour and $882.80 per week, based on a 38-hour week.
Tourism Accommodation Australia (TAA) CEO and Accommodation Association interim CEO, Michael Johnson, said the decision is “understandable” but will add to hotels increasing cost pressures.
“Given the current cost of living pressures, the rise in the minimum wage is totally understandable,” said Johnson.
“It is hard to argue against an increase for those on low incomes who are struggling to make ends meet.
“But we need to keep in mind that hotels are also impacted by the increasing cost of goods and services. Wages make up around 30% of operating costs and this rise will definitely have flow on effects.”