FWC minimum wage increase is 'reasonably modest'

The Motley Fool Chief Investment Officer Scott Phillips says the minimum wage increase is “reasonably modest”. The Fair Work Commission increased the minimum wage by 3.75 per cent. “3.75 is a reasonably modest number, relatively the same as annual inflation,” Mr Phillips told Sky News Australia. “The RBA is very concerned about wages continuing to be a pressure on prices – so they probably wouldn’t love this but are probably glad it’s not higher than that. “If you’re on minimum wage, you’re least able to deal with inflation – there’s nothing else to cut back – so these people probably do need the money.”