Almost three million Australian workers will receive a 4.75 per cent pay boost after the industrial umpire's annual minimum and award wage review.
The Fair Work Commission's decision on Tuesday to lift the minimum wage to $1004.90 a week followed the federal government's call for a "sustainable" real wage rise.
The decision came amid ongoing uncertainty around the Middle East conflict and how long the Strait of Hormuz would remain shut, keeping upwards pressure on inflation.
Headline inflation was 4.2 per cent in the year to April, according to Australian Bureau of Statistics figures, but the Reserve Bank has forecast inflation to rise to 4.8 per cent by the end of June.
Fair Work Commission president Adam Hatcher said it was not practical or responsible to award a pay rise above five per cent needed to close the real wage gap that had opened up since the COVID-19 pandemic.
