Mining wage

Australia’s 2.7 million minimum-wage workers and low-wage workers receive a pay rise of up to 5.2%

In order to combat the challenges of rising inflation and the cost of living, AustraliaThe 2.7 million minimum-wage and low-wage workers will receive a wage increase of up to 5.2% on Friday.

This is the largest increase in 16 years.

From July 1, there will be a $40 weekly increase in the national minimum wage, which applies to employees who are not covered by a bonus or registered individual contract.

The new legal minimum is $812.60 per week, or $21.38 per hour, which reflects a 5.2% increase.

While low-wage retail workers will start seeing pay increases on July 1, those employed in the tourism and hospitality industries will have to wait until October 1.

For those employed full-time, the new minimum wage is $42,255 per year, an increase of $2,080 from the previous minimum wage of $40,175.

The increase was the most generous since the mining boom of 2006 and exceeded the inflation rate of 5.1%.

However, despite this considerable boost, Philip Lowe, Governor of the Reserve Bank of Australia, predicts that inflation will hit 7% for the first time in 32 years in 2022, which would lead to a real drop in wages for the less well off. paid.

Similarly, Australia’s 191,000 apprentices only earn a 4.6% raise, along with an additional 2.5 million graduates.

Their salary increases are not keeping up with inflation, so given the current rate of inflation, they are really seeing a reduction in real wages.

Workers on modern scholarships will receive a $40-a-week wage increase if their weekly earnings exceed $869.60, as will those earning minimum wage.

Effective July 1, a first-year electrician apprentice will earn only $24,466 or 57.9% of the minimum wage of $42,255.

According to a press release from Treasurer Jim Chalmers and Employment Minister Tony Burke, 59.1% of women, or 1,571,100 women, will benefit from the minimum wage increase.

1,088,300 men, or 40.9%, will see their wages increase.

At 62.6%, more than two-thirds of Australians receiving pay rises are part-time workers. In comparison, 37.7% of full-time employees have this status.

The industries with the largest number of employees that will benefit from the minimum wage increase are those in the health and social assistance, accommodation and food services, and retail sectors.

The Treasurer said in a statement that “this week’s minimum wage hike is a success for the many hard-working Australians who have kept our communities and economies moving forward amid the worst of the pandemic.”

“This salary increase recognizes these sacrifices and the particular difficulties of our economy,”

According to Professor John Buchanan, a labor market specialist at the University of Sydney, raising the minimum wage will have knock-on effects by raising community expectations of higher wages.

“The power of workers versus their bosses and ideas of a community standard and what is acceptable for form wages.” Thus, he explained “that (the increase) will shape this standard”.

“This will have a significant impact on those who rely on the rewards.”

“For the bulk of those paid above grant rate, the flow effects are muted, but there’s no doubt it will have an effect,” he continued.

The national minimum wage increased by 3.1% on average between 2010 and 2019 in Australia, although wage growth has been slow for years.

According to data from the Australian Bureau of Statistics, more than one in four workers, or 23%, are protected by an industry award, 35.1% have a collective agreement with their employer and 37.8% are covered by individual agreements.

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