Call centre worker Kim Nolan is thankful he will get a pay rise, but doesn't think it will help him even cover his rent increase.
The 26-year-old is one of the 2.2 million Australian workers who will directly benefit from a three per cent rise in the national minimum wage, as he is paid an award minimum rate.
Mr Nolan said it was nice to get a small pay increase, but it would not be enough to cover the many things that contribute to the cost of living for low-paid workers.
"I'm not seeing it so much as extra, it's just sort of catching up to the costs that have increased in the last 12 months," he told reporters outside the Fair Work Commission in Melbourne on Thursday.
"I don't think it will be enough to cover even just rent increases that come through every year."
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Lorraine Bird, a semi-retired school cleaner who now receives a pension, also believed the $21.60 a week increase in the national minimum wage was not enough.
"We need a lot more," she said.
"People out there are struggling with the price of meat, the price of housing, the price of food, rent and petrol and everything going up.
"So thank you for the pay rise, but I think we need a bit more."
Security worker Kazim Shah said he will use the extra money to help pay bills, but it is not enough to help him.
"I want to start a family but it is very hard because the minimum wage is not much," he said.
"Every bill is increasing - electricity, gas. It's harder and harder. We need more money so we can support our families."
