The minimum weekly wage in Australia has increased by $26, to $569.90.
Fair Work Australia made the decision today despite protests from business leaders that it would limit their ability to do business.
There are 1.4 million minimum wage earners in Australia, and unions had been pushing for a 27 dollar a week rise to make up for last year's pay freeze.
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The ACTU Secretary Jeff Lawrence said the union's claim was reasonable and economically responsible.
But more importantly, he said in a statement, decent rise to the minimum wage was about fairness and equity in our society.
Employer groups wanted any increase limited to $12.50.
The increase will reach the pockets of low earners in July.
