KEY DETAILS:

* The national minimum wage will rise by 5.2 per cent, or $40 a week, to help Australia's lowest-paid workers keep up with rising living costs.

* The new wage will be $812.60 a week, or $21.38 an hour, effective from July 1.

* A slightly lower increase of 4.6 per cent will apply for those on modern award wages from July 1.

* However, aviation, tourism and hospitality sector workers won't get their pay increases until October 1.

* Fair Work Commission president Iain Ross says the commission has proposed a proportionately higher increase for low-paid workers because of existing and growing inflationary pressures.

* A real wage cut for some workers will be addressed in subsequent reviews.

REASONING

* Inflation is eroding the ability of low-paid workers to keep up with the cost of living.

* Non-discretionary components of the consumer price index, including basic food staples, increased by 6.6 per cent over the year ended March.

* The strength of the labour market, low unemployment and sharp rise in living costs mean the wage rises "will not have a significant adverse effect on the performance and competitiveness of the national economy".

Source: Fair Work Commission

Australian Associated Press