The Australian Catholic Bishops Conference has argued for a 5 per cent rise in the national minimum wage.

The Conference has lodged a submission to the Fair Work Commission’s annual wage review through the Australian Catholic Council for Employment Relations, in partnership with Australian Catholic University.

Such a move would provide for an increase in the national minimum wage of $47.60 a week, taking it from $948 to $995.60 a week.

The hourly rate would rise from $24.95 to $26.20.

Bishops Commission for Social Justice, Mission and Service delegate for employment relations Bishop Columba Macbeth-Green said work should provide a wage that allows people to live with dignity, not simply survive.

“Work is meant to uphold human dignity. When wages fail to meet the basic cost of living, that dignity is compromised,” Bishop Macbeth-Green said.

“A just society ensures that those who work full‑time are not left struggling to put food on the table or keep a roof over their heads.”

He said a modest increase in the minimum wage would offer real relief to those affected by the rising cost of housing, energy and everyday essentials.

Based on original economic research by ACU Associate Professor Tom Barnes, the submission argues the Fair Work Commission should gradually eliminate the gap between the national minimum wage and the national poverty line for sole parents/carers with two dependent children.

The commission should also seek to substantially narrow the poverty gap for couples with dependent children.

“Our research shows that the national poverty line has increased by 5.8 percent in 2026,” the submission said.

“This is the largest increase in a decade. After narrowing following the historic national minimum wage increase of 8.6 percent in 2023, the gap between the minimum wage and the poverty line has again grown.

“It is now so large that to eliminate the poverty gap for sole parents/carers with two dependent children gap would require a one-off increase in the NMW of 15.1 per cent (or $143.15) in 2026, an increase which would still leave single-income, couple-based households with two dependent children living in poverty.”

The submission argues an even higher increase in the minimum wage would address the poverty gap more quickly and directly.

“However … in recognition of current risk factors flowing from military conflict in the Middle East, the global oil shock and rising inflation it is argued that a 5 per cent increase for 2026 represents a fair and reasonable compromise between the needs of Australia’s working poor and the broader challenges to businesses, communities and the economy,” the submission said.

The Catholic Church is one of the largest private sector employers in the country, employing more than 220,000 people in health, aged care, education, social services and administration among other areas.

About three-quarters of these employees are covered by enterprise agreements with the balance covered by awards made by the Fair Work Commission.

The Church has been a long-standing advocate for workers’ rights, providing submissions on the minimum wage for decades.

The submission will be published on the Fair Work Commission website