Australia, the weekly minimum wage raised to $ 628

Fair Work Australia (FWA) on Friday announced to increase 20.67 U.S. dollars a week for the minimum wage, lifting it to 628.7 U.S. dollars a week from 607 U.S. dollars.

However, the 3.4 percent increase to the minimum wage has been criticized by unions, who say it barely keeps up with the rising cost of living and does little to close the gap between low-paid workers and the rest of the workforce.

FWA said it recognized that many businesses were facing a tough time after a spate of natural disasters, including flood in Queensland, New South Wales and Victoria and Cyclone Yasi in Queensland, while Jobs Minister Chris Evans said the increase will make a significant difference to more than 1.3 million Australians.

"For those doing it tough an increase like that does make a difference," he told reporters in Canberra on Friday. "It will allow them to keep up with the rising costs in the community."

The 1.3 million Australians see the increase in their pay packets from July this year.

However, Australian Council of Trade Unions (ACTU) secretary Jeff Lawrence said the increase is not enough.

"We are pleased that it is above the inflation rate, however the increase is still below what other workers have been getting in the community," he told ABC News. "And it doesn't do enough to close the gap between low-paid workers and the rest of the workforce."

The ACTU wanted a 29.8 U.S. dollars a week rise, arguing businesses can afford to pay more.

Meanwhile, small business and employer groups are not happy with the Fair Work Australia decision either.

The Australian Chamber of Commerce and Industry (ACCI), which wanted any wage rise limited to 10 U.S. dollars a week, said sectors like retail, hospitality, tourism and manufacturing are already struggling with higher interest rates, tough retail conditions and rising Australian dollar.

"This is a very disappointing decision. There are not too many redeeming features in this decision for the small and medium business sector," ACCI Chief executive Peter Anderson said.

"It is a very blunt blow on small businesses, most of whom are in the slow lane of a two-speed economy and it is going to add about 3.2 billion U.S. dollars in the next year to their wage costs."

Business South Australia's chief executive Peter Vaughan said the wage rise was likely to flow into price increases and force businesses to review employment levels.

"With rising electricity and water prices and increased costs in doing business, the increase in wages is another cost that businesses will simply not be able to absorb," he said.

The Victorian Employers' Chamber of Commerce and Industry (VECCI) also said the decision, while striking a balance between union and employer claims, would likely create hardship for small to medium-sized businesses.

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