Minimum wage rise for nation's lowest-paid workers

Australia's lowest-paid workers will get a $16 a week wage rise from Wednesday.

But unions and employers are at odds over the benefits of the July 1 rise to the minimum wage determined by the Fair Work Commission in early June.

The rise will take the minimum wage to $656.90 a week - or $17.29 an hour.

Australian Industry Group chief Innes Willox says while it will be welcomed by workers, it's an unwelcome burden for many struggling businesses.

He says it won't be welcomed by those looking for work as it will make it harder for businesses to take on extra staff.

The ACTU says it isn't enough to close the gap with average wages, as Australia heads down the path of an entrenched American-style working poor.

The union peak body says it won't relieve the stress on low-income households facing higher healthcare, education and childcare costs.