From July 1, the minimum wage in Australia will increase by 5.2%, an increase of $1.05 from $20.33 to $21.38 per hour.
Workers on award rates will go up 4.6%, with a minimum $40 weekly increase for workers on rates below $869.60 per week.
Prime Minister Anthony Albanese made the minimum wage rise a cornerstone of his election campaign.
The Fair Work Commission say it would affect more than 2.7 million workers.
The Australian Chamber of Commerce cautions that the decision would put businesses under more stress.