Finance Minister Katy Gallagher has called for workers to receive a sustainable pay rise, despite not saying whether the government backed a minimum wage increase that matched inflation.

With submissions to the Fair Work Commission on next financial year’s minimum wage rise due to close, unions have called for an increase above seven per cent.

Unions are set to advocate for a wage rise for low-paid workers that matched inflation, according to The Australian newspaper.

Inflation stood at 7.8 per cent during the December quarter.

However, Senator Gallagher declined to say whether the government would push for a wage rise in line with inflation when it makes its submission to the Fair Work Commission.

Submissions are due by the end of the month.

“For low income workers, we want to make sure that they are getting sustainable and affordable pay rises,” she told ABC Radio on Monday.

“Last year (we) didn’t put a pay figure on (the last submission). I think we made the argument that, particularly for low paid workers, we wouldn’t want to see them go backwards, but we left it to the commission.”

The commission raised the minimum wage by 5.2 per cent for the current financial year in its most recent decision.

Consultations are set to begin in coming weeks between the commission, government, unions and business groups on the minimum wage before the decision is handed down in June.

Prime Minister Anthony Albanese said before the last election he “absolutely” backed a rise in the minimum wage to support the cost of living.

Senator Gallagher said the government was in the process of finalising its submission.

Opposition immigration spokesman Dan Tehan said any rise in the minimum wage needed to put downward pressure on rising inflation.

“Anything which is just going to raise and increase inflation growing in this country is to the detriment of our long-term interests,” he told Sky News.

“We have to get inflation under control in this country.”

– AAP