Fair Work Commission hikes minimum wage by 5.2%

The Fair Work Commission (FWC) has just released its minimum wage decision, handing down a 5.2% rise:

However, modern award wages will only rise by 4.6% subject to a minimum increase of $40 a week:

In handing down its decision, the FWC noted that trimmed mean inflation is set to rise by 4.75%, and noted that low paid are especially vulnerable to even larger rises in non-discretionary items.

At the same time, the FWC noted the need to keep inflationary pressures down, as well as the 0.5% rise in the superannuation guarantee.

Overall, the FWC seems to have struck the right balance and thankfully has not backed the egregious calls from the business lobby to significantly cut real wages.