JB Hi-Fi Ltd (JBH.AU) shares plummeted 5.01% during Tuesday's intraday session, marking a significant decline for the Australian electronics retailer.

The sharp drop came after Australia's Fair Work Commission announced a 4.75% increase in the minimum wage for award-covered workers, effective from July. This wage hike is expected to raise labor costs for retailers like JB Hi-Fi, potentially squeezing profit margins in a slowing economy.

The commission noted that monetary policy tightening would "undoubtedly slow down the economy in the year ahead," adding to investor concerns about consumer spending and retail profitability. Other consumer-facing companies including Eagers Automotive, Lovisa Holdings, and Domino's Pizza Enterprises also traded lower following the wage review announcement.