ABOUT 1.3 million low-paid workers will get a $21.66 per week pay rise, the Australian Fair Pay Commission (AFPC) has ruled.
In
its third minimum wage case decision since replacing the Australian
Industrial Relations Commission (AIRC), the AFPC ruled minimum wage
earners would receive the wage increase from October 1 this year.
AFPC chairman Ian Harper announced the pay rise in Melbourne today.
Professor Harper said the wage rise, when combined with relevant tax
and social security changes, would provide low income households with
real increases in disposable income.
"It is a decision that takes into account the state of the national
economy and the circumstances of low paid Australians,'' he said.
Prof Harper said the commission was aware of the financial pressures impacting on low income households.
"Movements in consumer prices, in particular, have put many low
income households under considerable financial stress,'' he said.
He added the commission had sought to balance a range of key trends
and developments in the economy, including inflation, employment
conditions and factors affecting the safety net for low paid workers.
The commission believed the pay rise would only have a minor impact
on wage and inflation outcomes in the economy, Prof Harper said.
The
ACTU had argued for a $26 per week rise, which would have lifted the
minimum wage to $548.12 per week, while employer groups said a $13.30
rise was more reasonable.
The Federal Government declined to nominate a figure but said the
Australian Fair Pay Commission (AFPC) should balance the potential
impact of minimum wage increases on inflation, employment and the
financial needs of low-paid workers.
Last year's rise was $10.26 a week.
Wage divide
While low-paid workers fought for an extra $26 a week Prime Minister
Kevin Rudd has given the nation's most senior public servants a
$1400-a-week pay rise.
Mr Rudd has signed off on a 18.9 per cent pay rise for the
secretaries of all 19 government departments, taking the packages for
the highest paid public servants from $410,890 to $488,557.
Professor Richard Mulgan from the Crawford School of Economics and
Government said the wage rates in the private sector were much higher,
but there was also a greater degree of pressure and responsibility.
However, he said it may be difficult for the Government to justify
the generous wage increases for senior public servants amid its calls
for others to show wage restraint.
"This is the difficultly with relativities in this area. It's a
question of who you compare yourself with," he said on ABC radio today.
"If you compare yourself with a private sector manager then you're not earning a great deal."
"On the other hand, if you're comparing yourself with the people
you're working alongside and other public sector workers at a time when
you're trying to talk a little bit about wage restraint ... it's not
particularly helpful."
Earlier this year, Mr Rudd urged politicians to show restraint on
their own pay levels as an example to the community to keep inflation
pressure down.
"We need to be able to face the Australian community in the eye and
say that we in the privileged position of this place are doing one
small bit when it comes to exercising some wage restraint on our part,"
he said in February.
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