AUSTRALIA'S 1.4 million minimum wage earners have been awarded a pay rise of $26 a week, just $1 less than demanded by the unions.
Fair Work Australia announced the change to the $544 minimum wage in Melbourne today, bringing it up to $570 a week.
The unions had been pushing for a $27 a week increase to make up for last year's pay freeze, but employer groups wanted any increase limited to $12.50.
The new minimum wage will come into effect from the start of next month.
Industrial Tribunal President Justice Geoffrey Giudice said the Australian economy had performed better than expected since March 2008.
"There is a strong case for a rise in minimum wages to provide a fair and relevant safety net, protect the relative living standards of award-reliant employees and assist the low paid to meet their needs,'' he said on Thursday.
"The forecasts for 2010-11 give strong grounds to conclude that such an increase could be awarded without threatening business viability, employment growth or adding to inflation.
"We have concluded that a significant increase in minimum wages is warranted.''
The national minimum wage will now rise on July 1 to $569.90 per week, or $15 per hour.
The decision marks Fair Work Australia's first case since it replaced the previous Howard Government's Fair Pay Commission.
