Australia’s minimum wage will increase by 2.5 per cent per cent to $772 a week, or $20.33 per hour.

The new rate kicks-in from the first of July, but not for all workers.

Industries affected by the COVID-19 downturn will have a few months breathing space before being required to pass on the rise.

Australian Council of Trade Unions Secretary Sally McManus told Oliver Peterson it was tough to argue against big business.

“We wanted 3.5 per cent, they wanted either zero or 1.1 so it’s better than nothing and it’s better than a pay freeze,” she said.

The raise will see workers on the minimum wage earn about an extra $20 a week.

“I think it’s tough for minimum wage workers because key essentials you have to pay like rent and fuel have gone up more than 2.5 per cent,” she said.

Click below to hear Sally McManus talk to Oliver Peterson. 

Australian Hotels Association WA CEO, Bradley Woods believes the increase is going to be tough for the industry.

“If there’s a hospitality business with 50 staff, they could be looking a $2000 a week extra pay as a result of the decision,” Mr Woods said.

Hear the full interview with Bradly Woods below.