Ai Group, the national employer association, says any increase to the national minimum wage "should not exceed a figure of 2.8 per cent".

Earlier this week, the federal government confirmed it would push for minimum and award wage increases that kept pace with inflation, while the Australian Council of Trade Unions (ACTU) has called for a 5% increase.

But Ai Group's CEO Innes Willox says the ACTU proposal is "reckless" and puts "Australia's future employment, inflation and interest rate paths" at risk.

"Having regard to inflationary pressures, adverse economic headwinds and ongoing volatility, a weakening labour market, low levels of productivity improvements and modest profit margins in many sectors, particularly among smaller employers, our view at this time is that any increase in the National Minimum Wage should not exceed a figure of 2.8 per cent," he said.

"In practical terms, this would deliver a real increase in the disposable incomes of many workers when the additional benefits from tax relief and increased levels of government support are taken into account."

Mr Willox said that the Fair Work Commission needs to be "mindful" when making its decision, given the "unprecedently high" increases to minimum wages in the past two years, and the forthcoming 0.5 percentage point increase to superannuation.

"These burdens on employers, as well as the clear challenges arising from our increasingly fragile and deteriorating economic position, are significant moderating considerations that must be carefully weighed by the Commission as it seeks to strike a responsible balance between the interconnected interests of employers, employees and the broader community," he said.

The minimum wage is currently $23.23 an hour, after the award minimum increased by 5.75% last July.