The decision by the Fair Pay Commission to freeze the wages of low income earners has caused havoc in Federal politics this week.

The Rudd Government and unions slammed the decision, describing it as a “kick in the guts” for working Australians.

The freeze will affect 1.3 million workers and is set to remain unchanged for at least six months.

The commission rejected calls for a rise of $21 per week, leaving the minimum wage at just $540 a week, before tax.

2SER’s Rosie Lewis reports.