Low paid workers get $18.70/week pay rise

The Fair Work Commission is to announce its decision on whether the minimum wage will be increased. Source: AAP

AUSTRALIA'S 1.5 million lowest paid workers will get an $18.70 a week pay rise.

The increase falls below the $27 per week rise the ACTU argues is necessary to avoid creating an underclass of working poor, but will disappoint business groups who argue they can only afford an extra $8.

Fair Work Commission president Justice Iain Ross said the wage rise was appropriate given pay inequality in Australia was increasing.

"While real earnings have generally increased over the past decade, earnings inequality is increasing," he said on Wednesday.

"Over the past five years, the rate of growth in average earnings and bargained rates of pay have outstripped the growth in minimum wages for award-reliant workers.

"This has reduced the relative living standards of award-reliant workers."

The rise means the national minimum wage will now be $640.90 a week.

Workers on the minimum wage will now earn $16.87 per hour, an increase of 50 cents on the previous hourly rate.

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