The survey found that lifting wages was a key concern for the majority of small businesses, with 84 per cent flagging a boost to staff salaries as a top priority.

Soaring living costs have been outstripping wages growth, with real wages falling 3.5 per cent when measured against headline inflation in the June quarter.

However, more than half of small businesses (52 per cent) have already increased wages in the last 12 months, according to an MYOB survey.

Around seven per cent of small and medium-sized businesses have lowered their wages, with 42 per cent leaving them stable.

The bulk of businesses that had boosted pay packets had done so by lifting prices (52 per cent), with 21 per cent taking smaller profit margins to cover a higher wages bill.

Around a third of those surveyed said they had lifted prices to account for the 5.2 per cent boost to the minimum wage from $20.33 to $21.38 an hour.

A notable gender pay gap was also revealed by the survey of more than 1000 business owners, with men paid 7.5 per cent more than women when median hourly wages were compared.

Women were also found to be shouldering more of the caring burden triggered by the pandemic, with women five times more likely than men to experience higher caring responsibilities due to Covid.

“On top of established and systemic challenges, the pandemic exacerbated many social and economic drivers that contribute to unequal outcomes for women,” MYOB chief employee experience officer Helen Lea said.

“These were particularly apparent in the industries most impacted by Covid restrictions, such as hospitality and retail,” Ms Lea said.