With the new financial year fast approaching, the federal government is reminding low-paid workers they will get a pay rise from July 1.

More than 1.3 million working Australian will benefit from a 2.9 per cent increase in the national minimum wage from Sunday, following a Fair Work Australia (FWA) decision earlier this month.

The minimum wage will rise by $17.10 per week to a total $606.40 per week, an increase of almost $900 a year for a full-time worker.

"It's the Gillard government's fundamental belief that Australian workers deserve a fair day's pay for a fair day's work," Treasurer Wayne Swan said in a joint statement.

He said the increase was a vote of confidence in the Australian economy, showing its underlying strength amid global uncertainty.

In the government's submission to the independent umpire, it asked FWA to ensure its decision reflected increases in the cost of living, which Workplace Relations minister Bill Shorten said was reflected in this pay increase.

"The minimum wage increases are an important reminder that a fair and balanced workplace relations system, underpinned by a simple, stable, safety net, is important for all working Australians," Mr Shorten said.

AAP