What does a minimum wage increase mean for you?

From groceries to petrol, there’s no doubt, the cost of living has fast risen.

The new Labor Government is supporting an increase to the minimum wage, so what will this mean for you?

Labor has recommended a 5.1% increase for low paid workers. This would amount to a $1 increase in the minimum award wage, putting it at $21.36.

The recommendation aims to target workers on low rates of pay who are experiencing the worst impacts of inflation.

Prime Minister Anthony Albanese has stated that a real wage increase for the lowest-paid workers would also help to close the gender pay gap.

The Labor government has officially put forward their recommendation to the Fair Work Commission however, it will be up to the Fair Work Commission to decide the rate increase.

The process will occur as part of the Annual Wage Review, with any changes to be implemented from July 1.

Across the ditch in NZ, the government has increased the minimum wage by 6% to mirror its inflation rate, which is slightly higher than Australia.