Low paid workers get $15.80 week pay rise Australia's 1.5 million lowest paid workers will get a $15.80 a week pay rise, less than last year. The national minimum wage will rise to $622.20 a week, from $606.40 currently, the Fair Work Commission ruled on Monday. It is less than the $30 a week increase sought by unions but more than the $5.80 wanted by business groups. Last year the national minimum wage rose by $17.10 a week. Fair Work Commission president Justice Iain Ross said there would be a 2.6 per cent increase in the minimum wage, noting a number of considerations led to the decision to award a lower increase than last year. "While the economic outlook remains favourable, GDP growth is expected to ease to slightly below trend in 2013/14 and the unemployment rate is expected to increase slightly," Justice Ross said. Inflation is expected to remain comfortably within the RBA's target range of two to three per cent. In addition to these considerations, the superannuation guarantee increase to apply from 1 July this year has also been a moderating factor in our assessment of the adjustment that should be made to minimum wages. As a result, although it would not be appropriate to quantify its effect, the increase in minimum wages we have determined in this review is lower than it otherwise would have been in the absence of the superannuation guarantee increase. He said the commission had also taken into account the effect of the carbon price on inflation figures and the lower than forecast recent inflation outcome. Justice Ross said while some of the minimum wage rates in modern awards had increased in real terms over the past decade, they had not kept pace with the level of wage increases generally. Relative to all measures of median and average earnings, modern award minimum wages have fallen over the past decade and earnings inequality is increasing. If not addressed these trends may have broader implications both for our economy and for the maintenance of social cohesion in Australia. He said both minimum wages and the tax transfer system were relevant to the maintenance of an effective safety net for the low paid. The tax transfer system can provide more targeted assistance to low-income households and plays a significant role in alleviating the impact of earnings inequality and supporting the living standards of low-paid workers, he said. Justice Ross called for the federal government to discuss the issue with the major parties in an effort to arrive at a consensus on the specific effect any future tax transfer changes may have on the variation of minimum wages in next year's review. The hourly rate will rise to $16.37 an hour, from $15.96 currently. The ACTU had argued for a $30 a week increase to $636.40, saying it would stop a decline in low-paid workers' living standards. The Australian Chamber of Commerce and Industry (ACCI) labelled the ACTU claim as reckless and called for a weekly rise limited to $5.80, warning of deteriorating conditions for small business. Justice Ross said the commission was not persuaded by arguments by a number of parties who had sought differential treatment for certain awards.