Millions of Australians get a pay rise amid cost-of-living crisis

By NICHOLAS COMINO, POLITICAL REPORTER, AUSTRALIA Published: 01:08, 2 June 2026 | Updated: 01:25, 2 June 2026 Almost three million Australians will receive a hefty wage boost next month amid the cost-of-living crisis. The Fair Work Commission announced on Tuesday that a 4.75 per cent increase would be applied to minimum and award wages from July 1. The current minimum wage is $24.95 per hour, or $948 per week. The increase will bring the lowest base rate for a full-time employee to $1,490 a week, or $26.44 an hour.  These are typically workers in entry-level roles with ongoing, permanent employment. There is also a separate, lower introductory rate for workers who are new to a job or still in training, known as 'introductory' or 'intermediate' classifications.  For these employees, who can only be paid this rate for up to six months, pay will sit at $978.10 a week, or $25.70 an hour. The decision sets new minimum pay rates across the award system, which covers workers in industries like retail, hospitality, cleaning and care work who are paid according to legally set pay scales Millions of Australia's lowest-paid workers are poised to receive a wage increase of 4.75 per cent, after the Fair Work Commission (FWC) handed down its latest decision (stock image) The Fair Work Commission estimates the changes will directly affect around 100,000 of the very lowest-paid workers, though millions more on award wages will also see increases flowing from the decision. At the same time, the national minimum wage, which acts as a safety net and is generally aligned with the lowest award classification (known as the C13 level), will increase to $1,049.90 per week, or $26.44 per hour. The ruling comes amid mounting cost-of-living pressures, with global tensions, including the blockade of the Strait of Hormuz, fuelling already elevated inflation. FWC President Justice Adam Hatcher when announcing the change, acknowledged the economic impacts of the conflict, as well as a bump in Australia's inflation at the end of 2025. Unions have a substantial rise is essential to prevent low-income workers from falling further behind. The Australian Council of Trade Unions (ACTU) pushed for a six per cent increase, which would represent a record lift in award wages. Employer groups, however, said that a rise of that scale would place additional strain on businesses already grappling with higher costs.  They argue it could lead to more insolvencies and further entrench inflation as companies pass increased wages onto consumers. Announced on Tuesday morning, the adjustment will apply to minimum and award wages from July 1 (stock image) Headline inflation stood at 4.2 per cent in April.  The Australian Chamber of Commerce and Industry instead proposed a 3.5 per cent increase, pointing to underlying inflation, recorded at 3.4 per cent, as a more appropriate benchmark. ACTU meanwhile claimed that their figure of 6 per could would only add a 'modest' 0.64 per cent  to the national wages bill.  'Past increases haven't increased inflation, and this one won't either,' the ACTU said in a statement before the announcement.  The Albanese Government also lodged a submission to the FWC in March, not offering a figure, but calling for a 'sustainable real wage increase'.   The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.