Unions are calling for a $50 a week increase in the minimum wage.

Minimum wage is currently just under $695 a week, or about $36,000 a year.

The Australian Council of Trade Unions (ACTU) secretary Sally McManus says an increase is necessary.

“That will be a significant amount to help people deal with the cost of living increases because at the moment working families are struggling to pay the bills,” Ms McManus said.

The ACTU's proposal represents an annual wage increase of 7.2 per cent, 

Australian Industry Group chief executive Innes Willox says an extra $50 a week would be too much for employers to bear.

“That would just be a job-killer and the ACTU … is really out of touch with the reality that most employers are facing at the moment,” Mr Willox said.

“Australia already has, internationally compared, a very high minimum wage but that's not to take away from the hard times that those living on a minimum wage would often face.

“The point here is that we have to get the balance right where people are able to have employment … and the ability of employers to create jobs and to pay the amounts that are fair and reasonable.”