The amount people need to earn per hour to meet basic living costs is to rise 35 cents to $20.55 per hour.
The new Living Wage will better reflect the needs people have to meet to survive and participate in society, including food and rent costs, energy, health, communication and education.
For a 40 hour working week, the increase equates to a total gross income of $42,744.
Last year the Tertiary Education Union (TEU) called on the pay of tertiary education institution bosses to be frozen until all institution staff are paid at least the Living Wage. TEU members have also been negotiating collectively at a number of institutions for a Living Wage and have worked hard to ensure the lowest paid workers get the biggest boosts in pay.
The new Living Wage will apply from 1 September 2018.