Minimum wage increases $21.60 a week from July

Australia's lowest paid workers will get a $21.60 a week pay rise, which is less than last year but more than employer groups had argued for.

Ito ang ilan sa mga payong pampinansyal sa 2022 mula sa May PERAan financial experts Source: AAP

The national minimum wage will rise by 3 per cent to $740.80 a week from 1 July, the Fair Work Commission announced on Thursday.

Unions had been calling for a 6 per cent rise, about $43 a week, while business groups were banking on a more modest increase of up to 2 per cent.

The commission's decision directly affects 2.2 million workers.

"We have decided to award a lower increase this year than that awarded last year," commission president Justice Iain Ross said.

While noting a recent slowing in quarterly gross domestic product growth, the economy had been performing relatively well and employment was expanding, while inflation was subdued.

"We are satisfied that the level of increase we have decided upon will not lead to any adverse inflationary outcome and nor will it have any measurable negative impact on employment," Justice Ross said.