The government does not nominate a specific wage increase figure, but its recommendation for a real wage rise points to a lift above inflation, which is tipped to climb as high as five per cent in the second quarter.

“Workers are doing it tough right now and that’s why we think they should get a sustainable real wage increase,” Dr Chalmers said.

Ms Rishworth pushed back at the suggestion a real wage rise would add to inflation, claiming wages were not a key driver of recent inflation pressures.

Lower-paid workers were more exposed to unexpected financial shocks and experienced greater financial hardship, she said.