AUSTRALIA | Restaurant & Catering Australia is concerned about increases to the minimum wage by the Fair Work Commission.
Australia’s peak body for restaurants, cafes and caterers, Restaurant & Catering Australia (R&CA) expressed its concerns regarding the Fair Work Commission’s decision to increase the modern award minimum wage by 3.5 percent from 1 July 2025.
“The decision by the Expert Panel will directly impact the viability of hospitality businesses in Australia and the future of gastronomy in our nation.” Restaurant & Catering Australia CEO Suresh Manickam said.
“Restaurant & Catering Australia’s recent Industry Benchmarking Report found that almost 80 percent of operators are considering a further increase in menu prices, which can be attributed to the increase in wage costs. The decision will need to be closely monitored for its impact on the wage-price inflationary spiral.”
In a submission published in March, Restaurant & Catering Australia had been advocating on behalf of the hospitality industry for the Fair Work Commission to consider the current challenges faced by the sector and to take into account the broader economic context when arriving at their final result.
Restaurant & Catering Australia highlighted that the increase of wages last year fuelled inflation over the past year. Given the looming tax cuts, Restaurant & Catering Australia also recommended no more than a 2.5 percent wage rise. To this end, these results are disappointing and another missed opportunity to support the industry.
Manickam said that this is an outcome that compounds the business uncertainty from inflationary pressures faced by family businesses.
“This wage hike is purely unsustainable for industry operators, as we know any increase in minimum wages has repercussions beyond a business's wage costs, and will lead to higher rates of unemployment and underemployment, and economic repercussions that impact the everyday consumer. Continued inflation and interest rate increases will be on the menu for all Australians and consumers.”
Restaurant & Catering Australia will be monitoring the impacts of this wage increase on the sector.
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