Union calls for $27 weekly minimum wage hike

"Our wage claim is responsible. Australia's economic outlook is good and improving. The Reserve Bank is predicting a return to normal growth this year.  Pressures on inflation are low and [an] increase of $27 a week would have a negligible impact on the Consumer Price Index, in fact less than one-fifth of 1%," he said.

But employers are not happy with the fresh demand for wage hike. The Australian Chamber of Commerce and Industry (ACCI) claims the ACTU's proposed wage increase would hurt small business.

David Gregory, ACCI's director of workplace policy, said in a statement, "Many small and medium-sized employers are still finding finance difficult to obtain and markets difficult to hold."

He said many small businesses are still adjusting from the effects of the new Fair Work laws and regulations and a fresh wage hike would be detrimental at this time.

"These businesses can not afford wage rises at the level proposed by the ACTU," Gregory added.

However, he assured the labor sector that the ACCI would support a "reasonable and balanced" minimum wage rise, and would release a formal proposal to the minimum wage review.

The last minimum wage increase was enforced in October 2008. The last wage hike brought the current federal rates to $14.31 per hour, or $543.78 per week.

Australia's lowest page workers missed out on an increase last year, which also saw a pay freeze for the first time in 15 years.

Fair Work Australia, the government's new regulator, will make a decision on minimum wage in July.