Australia Lifts Minimum Wage by 4.75 Percent From July
The Fair Work Commission announced a 4.75 percent pay rise for 2.8 million workers starting July 1 to prevent real wage declines. Analysts suggest the decision may prompt the Reserve Bank of Australia to raise interest rates in August as inflation remains above the target band.
Australia will raise its minimum wage by 4.75% for 2.8 million workers starting July 1. The increase exceeds the 3.75% hike in 2024 and last year's 3.5% adjustment. Higher labor costs may force the central bank to extend its tightening cycle to curb accelerating inflation.
### Wage Growth Outpaces Previous Hikes The Fair Work Commission set the new minimum wage at A$1,004.90 per week, or A$26.44 per hour. While the 4.75% increase is lower than the 6% sought by unions, it exceeds the 4.1% consumer price inflation recorded in the first quarter. The commission stated it aimed to ensure employees are not worse off in real terms compared to July 2025.
