Australia's national minimum wage will increase by 3.75% to A$24.10 per hour.

The increase provides a $33.10 weekly pay rise for the lowest-paid workers.

The Fair Work Commission's decision, effective July 1, aims to address cost-of-living pressures.

About 2.9 million Australians, including those on modern awards, will be impacted.

The increase is below the 5% sought by unions but above the 2% advocated by businesses.

The decision reflects current productivity growth and profit levels in certain sectors.

Factors considered include living standards, gender equality, and job security.

This follows previous minimum wage raises in 2022 and 2023.

Economists estimate an impact between 3.5-4.5%, with nominal wages growing at the fastest rate in nearly 15 years.

The decision aligns with the forecast return of the inflation rate to below 3% in 2025.

The decision also considers impending tax cuts and cost-of-living measures in the Federal Budget.

Minimum wages affect about a quarter of employees and make up 11% of total salaries in the economy.