Australia has increased the minimum wage by $A26 per week, lifting the minimum weekly pay to $A569.90. The new minimum hourly wage is $A15.
The ACTU had sought an increase of $A27 a week increase.
Employer groups had argued that level of increase was unaffordable and would send smaller firms to the wall.
The Australian Chamber of Commerce & Industry estimates the increase will add an extra $A2.5 billion to the yearly wage bills of small businesses.
ACCI says the increase is unaffordable and will slow the economic recovery.
But the ACTU says the decision will be good for the economy and will not cost jobs.