The Fair Work Commission said uncertainty and inflationary risk from the Iran conflict militated against wage increases above forecast CPI and awarded 4.75 per cent for most, but 6 per cent for those at the very bottom.

Unions had been calling for a 6 per cent increase, which employers branded a "ludicrous" ask.

Millions of Australians have been handed a pay rise, and the lowest-paid workers are getting the biggest bump in a move employer groups warn will fuel inflation.