The Australian Council of Trade Unions is advocating for a 5% minimum wage increase, highlighting the strain of inflation on worker earnings.

The Fair Work Commission is undergoing its annual wage review, taking into account perspectives from unions, employers, and the government.

Treasurer Jim Chalmers has stated that the decision on wages should not be influenced by the recent tax cuts and acknowledges the need for higher pay for low-income workers.

Business groups, including the Australian Chamber of Commerce and Industry, counter with a proposal for a more modest 2% wage rise, citing the impact of tax cuts.

The forthcoming wage adjustment, due by July 1, will have direct implications for nearly 2.8 million Australians on award and minimum wages, representing around 25% of the workforce.