The Federal Government says the Fair Work Commission should take into account its promise to cut the carbon tax when setting the minimum wage.

The annual minimum wage review has kicked off this week, with unions looking for a $27 per week increase, but the Australian Chamber of Commerce and Industry saying businesses could not increase pay any more than $8.50 a week.

The Government says FWC should factor in the carbon tax, which it says will be abolished while keeping the associated income tax cuts and pension increases.

So far Parliament has knocked it back, but insiders expect a better chance of the carbon tax repeal legislation passing when a new Senate is in place.

The Commonwealth has also called for the industrial umpire to think about ways of maintaining jobs growth when it makes it decision, saying wage costs influence hiring decisions.