The Fair Work Commission has announced the the minimum wage will be increased by 2.5 per cent to $20.33 an hour.

It means a $18.80 a week increase, bringing the national minimum wage to $772.60.

Shadow Minister for Women and Education Tanya Plibersek said it was a small increase for the lowest paid Australians.

“I think any increase is welcome but most workers are really struggling to keep up with inflation, the cost of living is going up in Australia and that’s a real problem,” she told Scott Emerson.

“It would have been great that the government sent a strong message that they wanted to see a decent increase at the bottom end.”

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