Millions of Australian workers to get an above-inflation pay rise as minimum wage lifts by 3.5%

Fair work commission decision falls between demands from the peak union body and business groups

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The Fair Work Commission says a 3.5% above-inflation increase to the minimum wage was necessary to avoid entrenched" lower living standards among the millions of Australia's lowest-paid workers.

The president of the FWC, Justice Adam Hatcher, said the decision would help claw back the loss of real incomes over the past few years, even as employer groups warned many smaller businesses would struggle the afford the generous" pay rise.