Australia's 1.4 million minimum wage earners have been awarded a pay rise of $26 a week, just $1 less than that claimed by the unions.
Fair Work Australia announced the change to the $544 minimum wage in Melbourne today, bringing it up to $570 a week.
The unions had been pushing for a $27 a week increase to make up for last year's pay freeze, but employer groups wanted any increase limited to $12.50.
The new minimum wage will come into effect from July 1.
The decision marks Fair Work Australia's first case since it replace the previous Howard government's Fair Pay Commission.