Fair Work Australia has announced an increase of  $19.40 a week for minimum wage earners, a move that will affect over 1.35 million Australians.

 

The decision lifts the National Minimum Wage to $589.30 per week, an increase of 3.4 per cent.

 

Commenting on the decision, Fair Work Australia noted: “Labour productivity is growing, the profit share remains at historically high levels and underlying inflation is well within the RBA’s medium-term target band. Employment is growing, unemployment is reducing and labour force participation remains high.

 

“In the circumstances a significant increase is appropriate which will improve the real value of award wages and assist the living standards of the low paid.”

 

This is the second decision  since the Fair Work system commenced, delivering an 8.4 per cent increase to minimum wages over the last two years.

 

The additional pay will be made in the first full pay period on or after 1 July 2011.

 

More information about the new pay rates for each modern award will be available at www.fairwork.gov.au