The protesters, some of them wearing fluorescent "hi-visibility" workwear and carrying banners which read "Change the Rules," brought the city of Melbourne to standstill on Wednesday.
Victorian Premier Daniel Andrews, who attended the mass rally, said the march should remind the government that Australians are demanding a proper "living wage."
"People are angry. They are out in the streets. They are out in force but they are campaigning for something very simple: 'a fair go'," he told reporters.
The country will hold national elections in May.
The opposition Labor party wants to make stagnant wages a focus of its election campaign, with its union allies saying that "Australians have seen the largest fall in their living standards in 30 years".
Some Labor supporters have called for a slew of workers to receive higher minimum wages and a cap on the number of foreign workers entering the country.
Meanwhile, the conservative ruling Liberal-National coalition sees company tax cuts as the best way of increasing wages.
The Wednesday protest was the second to hit Melbourne this week.
On Monday, animal rights activists blocked peak hour traffic in the city to protest cruelty to animals.