Albanese Government pushes for wage increase above inflation for millions of workers
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The news: The Albanese government is calling on the Fair Work Commission to deliver an above-inflation pay rise to those on the minimum wage and award-reliant workers, to assist with cost-of-living pressures.
The context: The Minister for Employment and Workplace Relations Amanda Rishworth and Treasurer Jim Chalmers’ submission to the Annual Wage Review today recommends the Fair Work Commission deliver an “economically sustainable real wage increase to Australia’s award workers” in its annual wage review.
The submission caveats that an “economically sustainable” outcome would be one that is “consistent with underlying inflation returning to the Reserve Bank of Australia’s target band in 2026-27".
The government stated this would help approximately 2.7 million Australians, or around one quarter of the workforce, who are currently on the minimum wage.
Since 2022, Labor’s recommendations for real wage increases have led to a cumulative increase of more than $9,000 for minimum wage workers. The minimum wage is now $175.40 higher per week, according to the government.
While the submission does not specify a numerical figure, it outlines several criteria such as economic conditions and the needs of lower paid workers.
In addition to this, the ministers noted that all Australian workers are set to benefit from upcoming tax cuts this year and next year, alongside the rollout of cheaper medicines and increased investments in medical bulk billing.
What they said: “Low-paid workers are more exposed to unexpected financial shocks and they experience greater financial hardship, and we support lifting their wages. An increase to the minimum wage can also play a role in closing the gender pay gap given women are disproportionately represented in award-reliant jobs,” Rishworth said.
“Workers are doing it tough right now and that’s why we think they should get a sustainable real wage increase. With fuel prices going up and mounting pressure on families, we’re helping with the cost of living in responsible ways,” Chalmers said.
The sources: Amanda Rishworth media release, Government submission to FWC Annual Wage Review 2026
