Since taking office in 2022, the government has implemented a minimum wage increase of $143 per week.

However, Chalmers did not specify a concrete figure for the proposed wage increase.

Treasurer Jim Chalmers is advocating for a wage increase above inflation for approximately three million workers across Australia.

The Australian Chamber of Commerce and Industry has proposed a 2.5 percent pay rise, linking increases to productivity growth.

Chalmers consulted with Reserve Bank Governor Michele Bullock, expressing confidence that the wage proposal is sustainable without worsening inflation concerns.

This wage growth has outpaced inflation, which currently stands at 2.4 percent, particularly benefiting sectors like education, healthcare, and social assistance due to government-supported pay deals.

Retailers also back the 2.5 percent pay rise, which is slightly above the current inflation rate.

While the Fair Work Commission sets minimum and industrial award wages annually, the government has requested a 'sustainable real wage increase' to support workers.

Chalmers emphasized that the proposed wage increase aims to support essential workers such as cleaners, retail employees, and early childhood educators.

In the care economy, wages have seen significant increases, with a reported rise of 3.4 percent over the past year, supported by federal funding.