The Australian Industry Group had been campaigning for what was a patently laughable $12.50 a week increase that came in well under two per cent.

With inflation currently running at 1.9 per cent the decision, which was handed down by Fair Work Commission president, Justice Iain Ross, gives minimum wage earners a real wage rise of 1.6 per cent - not exactly a fortune.

But it comes on top of the 3.3 per cent increase handed down this time last year and may help compensate for the loss of income sustained by many retail and hospitality workers as a result of changes to penalty rates.

Once the new rate takes effect on July 1 the national minimum wage will increase from $694.90 a week or $18.20 an hour to $719.20 a week or $18.92 an hour.

Business organisations and conservatives are already warning the increase, very much in line with that handed down 12 months ago, is a catastrophe that will induce small businesses to put the brakes on employment growth.

"It is out of step with wage movements across the economy, with inflation and with the pressures that many businesses are under," Australian Industry Group chief executive, Innes Willox said. "(It has the potential) to be a major discentive to employment".

Really? Tell that to Malcolm Turnbull and Scott Morrison. Only four months have elapsed since they were claiming to have delivered "the strongest calendar growth in jobs... on record" in the wake of last years equivalent increase.

It looks like a moderate and well-considered increase in wages for those at the bottom of the income ladder doesn't spell the economic ruination of the nation after all.

That said, let's not get our hopes up that either Mr Morrison or Mr Turnbull will be turning out to lavish praise on the FWC for Friday's decision any time soon.

Workplace Minister Craig Laundry's rather terse observation the FWC had delivered "a carefully considered and balanced outcome" is about as good as it is going to get from that side of politics.

Labor's shadow employment minister, Brendan O'Connor, was more forthcoming. He said the increase went some way to responding to the fact household debt and income inequality were at record levels.

The ACTU, which had been pressing for a 7.2 per cent increase that would have cost employers $50 a week, was not quite so sanguine.

"It is a step forward to a living wage but it is not a living wage," ACTU secretary, Sally McManus, said.

The commission agreed to disagree, concluding a rise of that magnitude would impact on employment opportunities for low skilled workers.

"Such adverse effects will impact on those groups who are already marginalised in the labour market and on households vulnerable to poverty due to loss of employment or hours," Justice Ross said.

Despite the high expectations being cultivated amongst its membership by the ACTU, and the doomsday scenarios being pedalled by the ACCI and like minded groups, it appears the commission has reached a reasonable compromise - even if both sides ultimately remain unhappy with the result.