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An inflation-wary federal government says economic restraint, as well as cost pressures on families, must be considered when deciding the next rise in minimum wages.

Unions have called on the Australian Fair Pay Commission (AFPC) to give the nation's poorest workers an extra $26 ($NZ30.32) a week.

ACTU secretary Jeff Lawrence today said the union movement's submission for 1.6 million minimum wage earners would not be inflationary and was within broad wage movements.

But Prime Minister Kevin Rudd said the commission needed to take economic conditions into account in making its decision.

Interest rates have risen twice this year and the Reserve Bank of Australia has repeatedly warned that rising wages in a tight labour market threaten the inflation outlook and, in turn, future rate moves.

"We want an outcome that takes into account the cost of living pressures on working families," Mr Rudd told parliament.

"And we want an outcome that takes into account the need for restraint in the economy."

Mr Rudd has also taken repeated digs at the multi-million dollar salaries of corporate bosses.

"Inflation is the enemy of working families and it's critical that we reduce those inflationary pressures," Mr Rudd said.

"It's in that context that today I again call on Australia's business leaders to show some restraint when it comes to their salaries.

"I don't want to see a situation where we end up with two Australias."

Last year's AFPC increase was a mere $10.26, ($NZ11.96) after unions had called for $28 ($NZ32.66).

If the $26 ($NZ30.32) a week rise is granted this time, it will take the current federal minimum wage from $522.12 ($NZ609.02) to $548.12 ($NZ639.35) a week.

The commission is currently receiving submissions on this year's adjustment.

Labor frontbencher Anthony Albanese said the government had to take overall economic conditions into account.

"We have to bear in mind that a lot of low paid workers are very vulnerable. I think they deserve a fair increase, but a balanced increase as well," he said.

Mr Lawrence targeted AFPC chairman Professor Ian Harper as he criticised huge increases in corporate salaries in the past year.

"If there is to be restraint, it should be exercised at the top," Mr Lawrence told the National Press Club.

"I notice that Professor Ian Harper, in comments a week or so ago, seemed to be preparing the ground for a lower than justified minimum wage increase through his commission.

"That's in circumstances when he got a personal increase of $38,000 ($NZ44,325.20) last year – about 47 per cent. Well in excess of any worker who will be covered by any decision that his commission will make.

"I'd ask today whether anyone expects workers on average incomes to exercise restraint when none in shown by those who are paid 10 or 20 or 100 times as much."

Prof Harper reportedly is paid nearly $120,000 ($NZ139,974.33) a year.

Mr Lawrence said corporate salaries had risen more than 30 per cent on average in the past year.

AAP

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