The Fair Work Commission has awarded a "modest" $16 a week increase in the minimum wage to the nation's low-paid workers.

In its annual decision on Tuesday, a commission' full bench, led by president Iain Ross, increased the minimum wage by 2.5 per cent to $656.90 a week, or $17.29 an hour .

The Australian Council of Trades Unions had sought a $27-a-week increase, while the Australian Chamber of Commerce and Industry had argued for a real wage cut of $5.70 a week. The Australian Industry Group had pushed for a $10.25 a week pay rise.

Investors are expected to adopt a more cautious tone today after yesterday's heroics. Gabriele Charotte

The increase is lower thn last year when the national minimum wage was increased by $18.70 a week to $640.90 a week, or $16.87 an hour, an increase of 50¢ in the hourly rate.

More to come