The commission’s panel delivered the decision in Sydney on Tuesday morning after assessing submissions from the government and other stakeholders as part of the annual review process.

The national minimum wage will increase from $24.10 to $24.94 per hour or from $915.90 to $947.95 per 38-hour week.

They argued a higher figure would be at the expense of small to medium businesses.

Unions welcome pay rise amid concerns for small businesses

In response to concerns from small businesses, McManus argues the damage would be greater if workers didn’t have disposable income to spend.

ACTU secretary Sally McManus welcomed the wage increase after calling for a 4.5 per cent boost. Source: AAP / James Ross

“The very worst thing for small businesses is if workers’ wages go backwards, it means they have to cut back,” she said.

“Many owners will need to personally absorb these higher costs, unable to pass on any further price rises to consumers.”