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Prior to winning the federal election on Saturday, new Prime Minister Anthony Albanese backed a rise in the minimum wage, potentially giving millions of Aussies a pay boost.
Albanese said he backed a rise in the minimum wage of at least 5.1 per cent to keep up with rising inflation.
Currently, the minimum wage is $20.33 an hour and a 5.1 per cent increase would make it $21.45 an hour.
While it may seem small, a $1-an-hour increase would be in line with the rising cost of living and could help those on the minimum wage keep up with rising prices.
It is estimated more than 2 million Australians are on the minimum wage and could benefit from a rise.
But not everyone is pleased with the idea of a rise in the minimum wage.
Small businesses say it will put even more pressure on them as they still struggle to get back on their feet after COVID-19 lockdowns.
Who sets the minimum wage
It is not actually Albanese himself who determines the minimum wage.
The Fair Work Commission, an independent body, is responsible for calculating the national minimum wage.
Every year, the Fair Work Commission convenes a panel of experts to review the figure.
The panel considers a range of sources and materials, including written submissions from organisations and individuals, consultations with industry experts, and a range of papers, research and studies.
At the end of the commission’s review, a national minimum wage order is made.
This new minimum wage will apply from the first full pay period after July 1 each year.