The Australian Council of Trade Unions has today announced it will argue for a five per cent increase in the Annual Wage Review.

One in four workers rely on the Annual Wage Review for their pay rise.

ACTU secretary Sally McManus told Gareth Parker on 6PR Breakfast the increase was necessary to “keep peoples’ heads above water”.

“Unfortunately every year more and more people are on those minimum wages or award wages, so that’s a quarter of the workforce,” she said.

“If you don’t have the wage increase covering inflation, obviously your spending power is going backwards.

“That’s what happened last year, the average worker went backwards $800 in real terms.

“This year according to the budget it’s $500 only in the first six months … in Perth inflation is 5.7%”

Tap PLAY below to hear more on the ACTU’s push for higher wages.