The ACTU will for the first time make a claim for an increase in compulsory superannuation contributions as part of its submission for an increase in the minimum wage.
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The submission to the Fair Work Commission's annual review of the minimum wage will aim to compensate Australian workers for the federal government's decision to freeze superannuation increases until 2022.
The ACTU said its submission, to be made on Friday, will include an application for compulsory superannuation to rise from 9.5 per cent to 10 per cent. It will also call for an increase in the minimum wage which is now $640.90 per week.
ACTU Secretary Dave Oliver said it was the first time such a claim has been made since the introduction of the current system of mandatory superannuation payments. The ACTU would seek an extra 0.5 per cent to the minimum super contribution in awards in addition to an increase in minimum wages.
Mr Oliver said a full-time worker on the national minimum wage will be $3.20 per week, or $167.09 per year, worse off as a result of the freeze on minimum superannuation entitlements.
"For a 20-year-old minimum wage worker, the Abbott government's decision to not pass on the 0.5 per cent increase in compulsory super until 2021 means they will be $18,401 worse off in retirement," he said.
Unions have campaigned for compulsory superannuation to eventually increase to 12 per cent.
Mr Oliver said entitlements had been expected to rise to 10 per cent on July 1 this year under the Superannuation Guarantee before Treasurer Joe Hockey last year announced a freeze on any increases.
"Mr Hockey should support the half per cent increase on the basis of his suggestion last year that employers would pass on the cut in superannuation through wage increases," he said.
Mr Oliver said maintaining a fair minimum wage is essential to avoid the creation of an underclass of working poor in Australia.
"The annual minimum wage case is the only opportunity for 1.86 million of Australia's lowest paid workers to receive a pay rise," Mr Oliver said.
"Research shows boosting the minimum wage is good for workers and does not have a negative impact on employment."
Australian Chamber of Commerce and Industry chief executive officer Kate Carnell said the annual review of the minimum wage is "to do just that – to determine any movement in cost of living issues".
"The review has nothing to do with retirement savings," Ms Carnell said.
