Minimum wage increased by 5.2 per cent


Australia’s peak body for restaurants, cafes and catering businesses, Restaurant & Catering Australia (R&CA), has expressed concern at the Fair Work Commission’s decision to increase the minimum wage by 5.2 percent.

R&CA is concerned that this increase will compound inflationary pressures on businesses who are already struggling to recover in the wake of the COVID-19 pandemic.

R&CA CEO Belinda Clarke stated that the minimum wage increase will make it harder for small businesses to keep people employed.

“93 percent of our industry is small business. With everything they have gone through over the past two years with COVID-19, in addition to rising inflation, crippling staff shortages and the cost of doing business, this is sadly going to mean more business closures,” Ms Clarke said.

“Whilst we are glad that the Commission agreed with our submission in deferring the implementation of the award rate increase to 1 October, I know a lot of business owners will have limited ability to absorb the extra cost.

“We will continue to fight for the industry and work with government to make sure that there is an environment for businesses and their workers to flourish,” she said.