Australia's lowest paid workers will receive a 2.4 per cent pay increase, following Tuesday's annual minimum wage decision.

Key points: Fair Work Commission lifts the minimum wage from $17.29 an hour to $17.70 an hour

Fair Work Commission lifts the minimum wage from $17.29 an hour to $17.70 an hour ACTU had pushed for an increase to $18.07 an hour

ACTU had pushed for an increase to $18.07 an hour More than 1.8m people will receive the increase from July 1

The Fair Work Commission has lifted the national minimum wage from $656.90 a week or $17.29 an hour, to $672.70 a week or $17.70 an hour.

It constitutes an increase of $15.80 per week.

More than 1.8 million people who are on the minimum wage will receive the increase from July 1.

The commission said a generally robust economic climate provided the opportunity for a modest increase to Australia's lowest paid workers.

It said labour market conditions had been stronger over the past year, while inflation and wages growth were at historic lows.

The commission noted the relative position of low paid workers had deteriorated over the past 10 years, and that some were living below the poverty line.

Last year, the commission lifted the minimum wage by 2.5 per cent.

Increase does not go far enough, union says

Australian Council of Trade Unions (ACTU) secretary David Oliver said the union welcomed the increase, but said it did not go far enough.

"If you take into account the inflation rate it delivers a real wage increase of just over 1 per cent," he said.

"So for a minimum wage earner, that's something a little over $6 a week."

As part of the annual wage review, the ACTU had pushed for a national minimum wage lift to $686.90 a week, or $18.07 an hour.

Mr Oliver accused the Turnbull Government of failing to advocate for low-paid workers.

"The PM Malcolm Turnbull has on many occasions been talking up that that's a great time to be an Australian, on many occasions he talks about the value of a high wage nation," Mr Oliver said.

"I just speculate that had the Government put a submission in with an amount to lift the minimum wage, I've got no doubt that that would have had a considerable weighting and we may have seen a different outcome."

The Australian Chamber of Commerce and Industry sought a wage increase of no more than 1.2 per cent.

Chamber chief executive James Pearson said the increase would be a burden for employers.

"In comparison to the 2.4 per cent increase granted by the Fair Work Commission, private sector wages grew by just 1.9 per cent in the year to March 2016," he said in a statement.