Fed: Industry group says limit Living Wage rise to $10
CANBERRA, April 3 AAP - Low-paid workers should only get a $10 a week pay rise, theAustralian Industry Group (AIG) said in a submission to the Australian Industrial RelationsCommission (AIRC) today.
The AIRC was hearing an ACTU claim for a $25 per week pay rise for all award wage earnersas part of a national Living Wage review.
The ACTU claim was backed by state and territory governments but opposed by the federalgovernment.
The AIG submission would raise concerns about the unintended consequences that wouldflow from any adjustments awarded by the AIRC, chief executive Bob Herbert said in a statement.
"These consequences, which impact on both employers and employees, arise because ofthe way any adjustment awarded will intersect with the tax and social security systems."
AIG's proposed $10 rise would cost employers $13 per week when superannuation, workers'compensation, payroll tax and other costs are factored in, Mr Herbert said.
"It also needs to be borne in mind that an employee will not be $10 better off," he said.
"For example, an employee earning around $560 per week in a single income family withone young child could receive only $5.88 of the $10 and also lose their health care card."
A $25 per week rise would cost employers $32.50 per week and leave workers with a netgain of less than $12.00, he said.
AAP jph/daw/jnb/sb
KEYWORD: WAGE AIG
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