Effective July 1, Australia's 1.5 million minimum wage workers are set to receive an additional pay raise of $15.80 per week, a 2.6 per cent hike over their existing wages. Essentially, Australia's national minimum wage has been set at $622 a week, or $16.37 per hour.

Although less than what minimum wage workers wanted at $30 a week, it was still more than what the business groups said they can afford at only $5.80 a week.

Australia's prevailing national minimum wage is $606.40 a week.

Not Enough Yet Too Much

As expected, business groups denounced the figure claiming it could result to either businesses folding up or reducing manhours.

The $15.80 per week increase, equivalent to 41 cents an hour, was described as a "body blow" and a "blunt instrument" to Australian business, according to the Australian Chamber of Commerce and Industry.

Peter Andersen, chief executive, had earlier said that the $30 hike demand of the workers' group was already "reckless."

"There is no doubt that thousands of jobs will have their job security weakened. Many employers will see a big wage increase in this case as the straw that breaks the camel's back," he said.

In a parody, the increase enables low paid workers to purchase a six pack of cool beverages, www.pedestrian.tv said.

"It is not enough for employers to talk about economic fears which have not been realised," Meredith Hammat, Unions WA secretary, said.

"What is real is that housing and other essential costs of living are high and rising in WA. The overall inflation is low but this is misleading because low wage workers must meet rising costs for essentials, rather than slowing price rises for electronics, luxuries and lifestyle goods."

Ms Hammat noted that in Perth alone, renting costs had risen by $40 a week in the past year.

In releasing its decision, the Fair Work Commission noted the growing inequality between those on minimum wage and other wage earners over the past 10 years.

The 2013-14 wage rise was small compared from the 2012 pay hike due to the country's below trend growth as well as the coming superannuation rise.

"While the economic outlook remains favourable, GDP growth is expected to ease to slightly below trend in 2013/14 and the unemployment rate is expected to increase slightly," Justice Iain Ross said on Monday morning.

"Inflation is expected to remain comfortably within the RBA's target range of two to three per cent."

"In addition to these considerations, the superannuation guarantee increase to apply from 1 July this year has also been a moderating factor in our assessment of the adjustment that should be made to minimum wages."

"As a result, although it would not be appropriate to quantify its effect, the increase in minimum wages we have determined in this review is lower than it otherwise would have been in the absence of the superannuation guarantee increase."

See the entire ruling here - http://www.fwc.gov.au/decisionssigned/html/2013fwcfb4000.htm

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