THE 5.2 per cent increase to the minimum wage from the Fair Work Commission was not enough for many low-income workers still struggling to make ends meet, Catholic Social Services Australia chair Francis Sullivan said.
For a worker on minimum wage the increase amounted to about $1 extra an hour, or about $40 a week.
The increase was only 0.1 per cent above the current rate of inflation.
A weekly minimum wage earning was now $812.60, which Mr Sullivan said was still well below the poverty line of $1091 a week.
But he said it was a welcome change after a decade of minimum wages going backwards.
“While the Commission’s decision is welcome, the struggle for low-income families to achieve a decent standard of living is still very, very hard, Mr Sullivan said.
“Many of the working poor in Australia have barely enough to pay their rent and put food on the table.
“And with runaway inflation and cost of living increases, this is only getting worse.
“In a country like Australia, every worker should be able to, at the very least, pay their bills, support their families and still have a little left over for a decent standard of living.
“The challenge for the Government is now how to push the minimum wage closer to or above the poverty line for the average family.”
The Australian Catholic Council for Employment Relations recommended an increase of 6.5 per cent to the minimum wage.
Its submission was based on research from the Australian Catholic University (ACU) and concluded “a significant cohort of Australian workers who are dependent upon the NMW … are not receiving a decent living wage”.
The report also argued anything less than a 6.5 per cent increase would be inadequate to protect them from “ill effects of poverty and disadvantage”.
