Australia's lowest-paid workers are set to get a pay rise of $24.30 a week from July 1.
The Fair Work Commission on Friday handed down its annual ruling on the national minimum wage, raising it by 3.5 per cent to $719.20 a week, or $18.93 an hour.
Unions had been calling for a $50 rise, while employers were arguing for a $13 a week increase for more than 2.3 million Australians.
More than two million Australians will see an increase in their pay packet.
President Justice Iain Ross said compared to this time last year, economic indicators now point more "unequivocally to a healthy national economy and labour market".
"The circumstances are such that it is appropriate to provide a real wage increase to those employees who have their wages set by the national minimum wage or by a modern award," he said in Sydney.
The ruling will come into effect on July 1.