Pay rise for all low paid workers

The Fair Work Commission announced the increase in the minimum wage on Thursday, amounting to an extra $21.60 a week for low paid workers from July 1.

It will take the minimum wage to $19.49 an hour or $740.80 a week for full-time workers.

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said he was concerned about the impact of the increase on small businesses in Tasmania.

"We support the Fair Work Commission and value its independence," Mr Bailey said.

"We would point out though that the experience of running a business in central Sydney or Melbourne is very different to regional Australia, particularly Tasmania.

"This decision will have ramifications in regional businesses who can only react by shedding jobs to manage wage increases in stagnant markets."

Mr Bailey said business had argued for an increase not exceeding 1.8 per cent.

"We need wages to affordable in Tasmania. Small and medium-sized businesses drive the Tasmanian economy," he said.

"Without them, without the ability for those businesses to employ people and pay them, Tasmania will collapse."

Unions Tasmania secretary Jessica Munday said the minimum wage rise of 3 per cent equated to a 57 cent per hour increase.

She said it would not be enough to make a real difference in the financial position of low paid workers.

Unions had campaigned for a wage increase of $43 per week which would see the minimum wage on a path towards becoming a living wage - 60 per cent of the median full-time wage.

"While workers who are struggling on award wages will welcome any extra money in their pay packets, this rise falls well short of what we know is needed to raise the minimum wage to a living wage," Ms Munday said.

"The rise is only 3 per cent this year, down from 3.5 per cent in 2018 and we have no evidence that our members are struggling any less now than they were last year.

"We also need to remember that 700,000 workers in retail and hospitality stand to lose more pay when penalty rates are cut again by 10 per cent on July 1.

"The initial reactions from our members is that this decision is woefully inadequate."

Ms Munday said members on low wages were making tough decisions every day "between paying for essentials like housing and power or putting food on the table".

"Tasmanian workers need decent wages to stop their living standards continuing to go backwards.," she said. "The best way for workers to improve their wages and conditions is to join their union."