Australia’s lowest paid workers today will find out how much extra they will spend in their pockets per hour, amid warnings that inflation will continue to rise.
The Honest Workers Commission will decide on Wednesday how much additional 2.3 million low-paid and award-winning workers will receive on July 1.
Now the minimum wage is $ 20.33 per hour.
But with inflation currently at 5.1 per cent, Albania’s new government is calling for wages “not to go back”.
It is uncertain whether the government will seek to raise wages, given a new warning from the head of the Reserve Bank that by the end of the year inflation could be reduced by seven percent.
In the last days before last month’s election, Anthony Albanese took an unusual step, “absolutely” supporting the increase in the minimum wage.
The government has proposed the commission raise the minimum wage by 5.1 percent, bringing the minimum wage to $ 21.37 an hour, while unions have called for a 5.5 percent increase.
Meanwhile, leading groups of employers have sought to limit annual growth from 2.5 to 3.2 percent.
This follows a warning from the head of the Reserve Bank Philip Lowe on Tuesday night that inflation could reach seven percent by the end of the year, and during this period is likely to be a multiple increase in interest rates.
Dr. Lowe predicted that inflation would not begin to fall until the first quarter of next year.
“I am confident that over time inflation will decrease, but we need to have higher interest rates to get that result,” Dr. Lowe told ABC 7.30.
Dr. Lowe and the Reserve Bank have come under criticism after ignoring their last year’s prediction that interest rates would not rise until 2024.
The cash rate rose 0.5 percent last week, the second increase in as many months.
“Sometimes my comments are explained as I promised or a very strong statement that interest rates will remain the same until 2024,” Dr. Lowe said.
“In our own communication, in our own way of thinking it was a very conditional expression.
“The economy was not developing as we expected, it was much more stable, and inflation was higher, and we thought we needed to respond to that.”
At the same time, from July 1, the salaries of officials and deputies will increase by 2.75%, which means that the salary of the head of state will increase to $ 217,060.
During the pandemic, MP wage growth was frozen, and given that inflation is expected to reach seven per cent by the end of the year, a 2.75 per cent rise is a real pay cut.
This means that Mr. Albanese will receive an annual salary of $ 564,364 excluding expenses and allowances, and opposition leader Peter Dathan will receive $ 401,561 a year.