Almost three million Australian workers will receive a 4.75 per cent pay boost after the industrial umpire's annual minimum and award wage review.
The Fair Work Commission's decision on Tuesday to lift the minimum wage to $1004.90 a week followed the federal government's call for a "sustainable" real wage rise.
The decision came amid ongoing uncertainty around the Middle East conflict and how long the Strait of Hormuz would remain shut, keeping upwards pressure on inflation.
