Local business leaders are worried the increase in the minimum wage could spell more trouble for employers.
The Fair Work Commission announced on Monday a 3.75 per cent increase for the lowest paid workers that will start from July 1.
The hourly rate will be increased to $24.10, giving workers an extra $33 a week.
However Geelong Chamber of Commerce CEO Jeremy Crawford said it was not great news for small businesses already struggling with rising costs.
“Such as retail and hospitality that we know the business conditions are already tough,” he said.
“The average spend of customers is trending down and pressures such as this will likely add some fuel to those issues.”
Mr Crawford said it could be difficult for those businesses in the short term, and they may look at their business model moving forward.
