A $26 a week pay rise and income tax cuts begin today, providing much relief for working families faced with ever increasing living expenses.

More than 1.4 million workers will benefit as a result, receiving the extra $26 a week in their pay packets from today. The pay rise now lifts the minimum wage to $569.90 a week, or $15 an hour.

in addition the average worker will be an extra $450 a year better off as a result of tax cuts that also take effect from today.

The decision, announced by Fair Work Australia back in June, was a much needed boost for workers and broke the drought after a wage freeze of almost two years under the Howard Government’s wage-setting tribunal.

The $26 a week minimum wage rise will help working families meet continuing increases to the cost of living after having previously been left behind under WorkChoices.

Fair Work Australia's minimum wage panel, in its first decision, increased the minimum award weekly rates by $26. That was just $1 short of the $27-a-week sought by the ACTU.

The minimum wage panel rejected employer arguments that an increase be delayed, ruling that the increase should take effect from the first pay period to commence on or after 1 July 2010.

The increase will result in all minimum award wage rates increasing as well as wage related allowances. Expense related allowances will also be adjusted for CPI increases from the same operative date.

The National Office will be preparing new wage sheets for our major awards that reflect these increases. They will be available from Branches and on this site from July 1.