The Australian Fair Work Commission on Friday said it had decided to raise national minimum wages by 1.75%, with the award limited by the damage done to the economy by the coronavirus lockdown.
Many business groups had argued for no rise this year given the hit to activity from the lockdowns, while unions called for an increase of 4%.
The new minimum wage would be A$753.80 ($516.43) per week or A$19.84 per hour, a rise of A$13 per week, the Commission said after its annual review.
In a change, the starting date for awards will be staggered between July and February next year, to aid sectors worst hit by the lockdowns.
(Reporting by Wayne Cole; Editing by Himani Sarkar)