What is the proper hourly wage increase for workers in Australia?



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The Australian Workers Union urged that mininum wages be raised by $ 45 per week, while Industry or employers only proposed a 1.5 percent increase.

Every year the issue of wage increases has always been a topic of conversation in Australia. In fact not just in Australia alone, in developing countries even more prominent demands for this wage increase.


An institution called "Fair Work Commisions" will determine how much of an increase will be approved, of course, taking into account various factors, including inflation and economic growth.


Currently the hourly minimum wage in Australia is $ 17.70 per hour, and if someone works 38 hours per week, then the wage earned before tax is $ 672.70.


Sally McManus, secretary of the recently hired Australian Trade Union Council (ACTU) said he would consider proposals for a minimum wage increase of $ 45 a week.Last year the approved increase was $ 15 a week.


"This increase will bring the minimum wage in Australia near the standards of developed countries (OECD), to avoid paying too low, which is about 60 percent of the average [wages]," McManus said in a speech at the National Press Club in Canberra " .

 "With that increase, the average worker's income is only $ 37,420 per year, or $ 18.89 per hour, and this is just one example where workers are neglected in a system that fails to make adjustments."

In its proposal in the 2017 Annual Wage Assessment, Ai Group will recommend a minimum wage increase of 1.5 percent, which they argue is that the increase is sufficient to maintain household purchasing power, while this does not make it bankrupt to businessmen or entrepreneurs.


This is an increase of about $ 10 per week or for full-time workers, or less than a quarter of the union's desired wage.


Ai Group's Policy Division director Peter Burn said higher wage increases led to fewer jobs and reduced opportunities for employers to offer more work hours.And according to him, this will lead to the possibility of reducing one's household spending money.


"We are squeezed in this way among our desires to give everyone a big wage increase" he told ABC.

"But the reality is that the impact will tend to worsen household sector expenditure, household income"

The proposal of Ai Group is higher than the proposed retail industry that proposes that the wage increase is only 1.2 percent.
 
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