The Australian Labor Party is set to recommend to the Fair Work Commission an 'economically sustainable' real wage increase aimed at benefit workers on award rates.

Prime Minister Anthony Albanese is expected to make this announcement as part of Labor's policy initiatives to address the cost of living crisis affecting many Australians.

Labor has not specified the exact wage increase amount or timeline but emphasizes that the proposed changes are designed to enable Australians to 'earn more and keep more of what they earn.' Approximately three million Australians, including those in occupations such as cleaning, retail, and childcare, stand to benefit from the adjustment in award wages.

As of now, the national minimum wage in Australia is $24.10 per hour, translating to $915.90 per week for a standard 38-hour work schedule, or approximately $47,626.80 annually.

Over the past three annual wage reviews, Labor has advocated for wage increases, encouraging the Fair Work Commission to consider these adjustments for award rates.

In his statements, Prime Minister Albanese emphasized the importance of advocating for workers to receive pay rises to mitigate current financial pressures and secure stronger future financial positions.

Labor's push for wage increases coincides with a decrease in inflation rates and a recent decline in interest rates.

The most recent Consumer Price Index indicated an inflation rate of 2.4 percent, which aligns with the Reserve Bank of Australia's inflation target range of 2-3 percent.

Earlier this year, the Reserve Bank lowered the interest rate from 4.35 percent to 4.1 percent, marking the first reduction after a series of consecutive rate hikes that began in May 2022. Despite this reduction, the bank maintained the current interest rate at its latest meeting, citing ongoing global uncertainties.

Further details regarding Labor's proposals for higher wages are anticipated from Prime Minister Albanese later this Wednesday.