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Pope Francis's health is improving after he was hospitalised with a respiratory infection and he has resumed working while treatment continues, the Vatican says.

"His Holiness Pope Francis rested well during the night. His clinical picture is gradually improving and he is continuing his planned treatment," spokesman Matteo Bruni said on Thursday.

"This morning after breakfast, he read some newspapers and resumed work," he said.

Indicating that he was not confined to his bed, Bruni's statement said he had prayed in the small chapel within his private hospital suite.

Bruni did not say when Francis might leave Rome's Gemelli hospital. The Vatican said on Wednesday he was expected to spend a "few days" there.

The Pope was unexpectedly taken to Gemelli after complaining of breathing difficulties, raising fresh concerns over the health of the 86-year-old pontiff, who is suffering from a number of ailments.

Italian news agency ANSA reported earlier that nursing staff were "very optimistic" that, barring surprises, the Pope could be discharged in time for Palm Sunday celebrations on April 2 - the start of a hectic week of ceremonies leading to Easter Sunday on April 9.

It was not clear if the Pope would be able to take part in the various services, even if he was discharged by the weekend.

Last year, the Pope attended but did not preside at some of the Easter services due to his knee pain. If the same happened again, a cardinal would be appointed to celebrate the services. If the Pope is fit, he could follow events from a chair.

ANSA, quoting unnamed hospital sources, said doctors had "for now" ruled out heart problems and pneumonia for Francis. The Vatican has also said he does not have COVID-19.

Francis, who this month marked 10 years as Pope, is sometimes short of breath and generally more exposed to respiratory problems. He had part of one lung removed in his early 20s when training to be a priest in his native Argentina.

The leader of the world's nearly 1.4 billion Roman Catholics also suffers from diverticulitis, a condition that can infect or inflame the colon, and had an operation at the Gemelli hospital in 2021 to remove part of his colon.

He said in January that the condition had returned and that it was causing him to put on weight, but that he was not overly concerned. He did not elaborate.

In addition, he has the problem with his knee and alternates between using a cane and a wheelchair in his public appearances.

His latest hospitalisation has revived speculation over a possible resignation on health grounds, following the historic precedent of his predecessor Benedict XVI, who died in December.

However, Francis has indicated he would follow the example only if he were gravely incapacitated.

© DPA 2023

The annual minimum wage for Australia's low paid workers should rise by seven per cent, the ACTU says.

The union body made the recommendation in a submission to the Fair Work Commission's national minimum wage review ahead of a decision in June.

If granted, more than 2.6 million workers on minimum and award wages would be entitled to a new minimum hourly rate of $22.88, taking their annual pay to $45,337.28 from July 1.

The government will lodge a submission on Friday, but it won't mention a specific number.

"We've been incredibly clear, we want to get wages moving again, it's common sense to begin with the lowest paid workers," Treasurer Jim Chalmers told the ABC on Thursday.

"Our submission will reflect the fact that we don't want to see people who are on the lowest incomes in this country fall further behind."

Dr Chalmers said the notion that inflation was being driven by low-paid workers getting wage rises was "absolute rubbish".

The ACTU said low-paid workers deserve the rise because they had suffered the most under rising inflation, which had eroded their buying power.

"A seven per cent pay increase is essential for minimum and award wage workers, who have suffered real wage cuts over the past two years," ACTU secretary Sally McManus said.

"It is simply about survival for the lowest paid workers in our country."

The current annual rate of inflation is 6.8 per cent, according to Australian Bureau of Statistics monthly consumer price index data released on Wednesday.

"There are real people behind the statistics of Australia's cost-of-living crisis - the workers we rely on to deliver vital services in early learning, aged care, disability care, fast food, cleaners, security, and retail," Ms McManus said.

The ACTU argues that because businesses posted strong - and in some cases record - profits in the most recent reporting period, the proposed wage increase is more than affordable.

Minimum and award wage increases had no discernible impact on inflation last year, it added, noting the biggest risk to the economy was a collapse in consumer spending power.

"There is no wage-price spiral in Australia," she said.

Shadow treasurer Angus Taylor said the opposition wanted to see higher wages in real terms and the best way to achieve that was to drive down inflation.

"You want people's real wages to go up without creating a wage-price spiral, which would be bad for everybody, then you've got to get inflation down," he told AAP.

"If you've got a strong productive economy and falling inflation, there's room for wages to be higher, and that's what we want to see."

He also said the minimum wage decision was in the hands of the commission.

"That's why we have an independent commission - I'm not sure whether Labor has the respect for that independence they once had," he said.

In its 2022 decision, the Fair Work Commission raised the minimum wage by 5.2 per cent, equating to $21.38 an hour.

This was after the ACTU argued for a 5.5 per cent increase and the Australian Chamber of Commerce and Industry, Australian Industry Group and other employer bodies proposed an increase between 2.5 per cent and three per cent.

Submissions to the commission's national minimum wage review close on Friday.

© AAP 2023

The peak union body has called for a seven per cent pay boost for Australia's lowest-paid workers to help them survive soaring living costs.

The ACTU made the recommendation in a submission to the Fair Work Commission's national minimum wage review before a decision in June.

If granted, more than 2.6 million workers on minimum and award wages would be entitled to a new minimum hourly rate of $22.88, taking their annual pay to $45,337.28 from July 1.

The government will lodge a submission on Friday, but it won't mention a specific number.

"We want to see wages moving again in this country in responsible and sustainable and meaningful ways," Treasurer Jim Chalmers said in Canberra.

"And it's just common sense to begin with the lowest paid Australians ... our submission will be consistent with that.

"We don't want to see people fall further and further behind."

Dr Chalmers said the notion that inflation was being driven by low-paid workers getting wage rises was "complete and utter rubbish".

But Opposition Leader Peter Dutton said it was important to get the balance right on wage increases so that inflation could be contained.

"Everyone's in favour of increasing wages, but if you get yourself into a situation where you're chasing inflation, then it will fuel inflation and inflation goes up," he told 2GB.

"So even with a pay rise, it means that people aren't getting ahead and inflation continues to go higher and higher and higher."

ACTU secretary Sally McManus argues that because businesses posted strong - and in some cases record - profits in the most recent reporting period, the proposed wage increase is more than affordable.

Minimum and award wage increases had no discernible impact on inflation last year, it added, noting the biggest risk to the economy was a collapse in consumer spending power.

"There is no wage-price spiral in Australia," Ms McManus said.

The ACTU said low-paid workers deserve the rise because they had suffered the most under rising inflation, which had eroded their buying power.

The current annual rate of inflation is 6.8 per cent, according to Australian Bureau of Statistics monthly consumer price index data released on Wednesday.

"It is simply about survival for the lowest paid workers in our country," Ms McManus said.

Greens leader Adam Bandt agreed minimum wage workers needed a pay boost.

"But we should go further," he wrote on Twitter.

"Minimum wage should be 60 per cent of the median wage, so we don't see inequality spiral."

In its 2022 decision, the Fair Work Commission raised the minimum wage by 5.2 per cent, equating to $21.38 an hour.

This was after the ACTU argued for a 5.5 per cent increase and the Australian Chamber of Commerce and Industry, Australian Industry Group and other employer bodies proposed an increase between 2.5 per cent and three per cent.

Submissions to the commission's national minimum wage review close on Friday.

© AAP 2023