The federal government won’t be drawn into a union claim for a seven per cent increase to the minimum wage.

Unions argue recent pay rises are still not keeping up with inflation and while Labor is pushing for another wage lift, they’re yet to put a firm figure on how much it should be.

There are concerns a wage rise would create an inflation spiral but ACTU secretary Sally McManus told Sofie Formica the change wouldn’t have a strong impact on inflation.

“What happened last year with the five per cent is its affect on the overall wage increases in Australia had less than a third of one per cent difference,” she said.

“So not like a spiral, hardly even like a bump. We know that it doesn’t cause a big boost in wages for everyone.”

Press PLAY below to hear Ms McManus weigh in on the government’s response so far

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