Business advocates believe the latest minimum wage increase strikes the right balance during an economic downturn.
The minimum wage will rise 1.5 percent - or 35 cents an hour - to $23.50.
The Government says the moderate increase reflects the current economic climate and labour market.
Employers and Manufacturers Association Advocacy Head Alan McDonald says this won't cause businesses to cut jobs - but they will be more cautious.
"If you're thinking about hiring people - and people are still hiring people - if you can get someone for $25-$26 an hour who's done a few years in the workforce and has a proven track record - are you going on someone at $23.50 who doesn't?"
LISTEN ABOVE
Take your Radio, Podcasts and Music with you
