The new Australian system has many similarities to the UK’s, and the new model could see the country’s workforce swell to almost half a million people by 2037, according to an industry source.
The OECD is recommending that Australia create a Basic Pay Commission that would decide what is the minimum wage for most workers and how much is paid.
Under the new system, the basic wage would be set at $11.60 an hour, with no additional pay if the employer is in the business of providing accommodation or food for a minimum of 30 hours a week.
The basic wage is the amount paid by most Australian businesses, but some employees are paid less than $10.
The Basic Pay commission would have to approve any wage increases.
However, it is believed that the proposed commission could increase the minimum pay for part-time workers and teachers to between $10 and $15 an hour.
There are already changes in the Basic Pay system in the US, and Australia’s proposed commission would require a new law.
In addition to the basic rate, the commission would be able to set the minimum wages of some employees in retail, restaurants and accommodation and food service.
However a Labor MP has warned that if Labor is elected in 2019, there would be no change to the minimum rate.
“This is the system we’re going to put into place by 2020,” Labor’s former shadow treasurer David Campos said.
“We know it is the lowest paid, and there is no minimum wage in the OECD.”
It will be based on the same basic rates and we’re talking about a wage that is $12 an hour for the lowest earners.
“There’s no way you can put a minimum wage at that level, you cannot.”
Labor says it is looking to bring down the minimum hourly wage in New South Wales and Victoria to $10 by 2022.
The Greens have also called for a Basic Wage Commission to review the existing Basic Pay Act and the government to implement the recommendations.