Australia’s lowest paid workers will receive a $40 a week pay raise from July 1 after the industrial umpire raised the national minimum pay by 5.2 per cent, the highest rise since 2006.

Nine Radio's national political editor Michael Pachi told 6PR Mornings host Liam Bartlett the Reserve Bank's decision not to raise interest rates last year had prompted the minimum wage increase.

"Anthony Albanese would be happy with today's decision because the government did make a submission to the Fair Work Commission urging the board to increase wages by at least the rate of inflation, that has now happened," Pachi said.

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