The state’s minimum wage and pay rates will increase from July 1, after a ruling by the Western Australian Industrial Relations Commission.
The state’s minimum wage and pay rates will increase from July 1, after a ruling by the Western Australian Industrial Relations Commission.
The WAIRC today decided the state’s minimum wage for employees aged 21 and over will increase to $917.80 a week, a one-off 6.3 per cent increase from the existing wage.
The commission also decided to increase rates of pay in WA awards by 4 per cent, to align with the updated minimum wage.
Upcoming increases would only to employees who are paid the minimum wage or award rates in the state industrial relations system, with about 27,000 employers and more than 300,000 employees estimated to be affected by the increase.
WAIRC chief commissioner Stephen Kenner said the commission considered a range of social-economic and industrial factors in making the decision.
"Overall the state economy remains robust and has performed strongly over the 2023-24 year," he said.
"The labour market is forecast to remain strong in historical terms although some easing is expected as continued elevated, although easing, inflation dampens demand and household spending continues to pull back from higher levels over the last two years.
"From all the material before the commission, we have concluded that the Western Australian economy can sustain a meaningful increase in the state minimum wage and award wages."
UnionsWA secretary Owen Whittle said the pay rise was essential and welcomed amid steep increases to costs of living.
“Prior to this decision, the median house rent in Perth equated to just over 75 per cent of the state minimum wage,” he said.
“This decision while modest, will provide some cost-of-living relief to the lowest paid workers in WA.
“From 1 July 2024, the WA Minimum Wage for an adult will be $24.15 per hour or, if working full time $917.80 per week.”
Mr Whittle said the wage rise was advanced by unions and supported by the state government and the Western Australian Council of Social Service.
However, Mr Whittle also acknowledged the wage rise was opposed by employers.
Chamber of Commerce and Industry of WA chief executive Chris Rodwell said wages costs were a significant burden on small and family businesses in the state.
“While the increase is lower than the extreme hike the unions were pushing for, there’s no escaping the fact that it will impact the operational viability of small businesses across our state,” he said.
“It will come as a big shock to many.
“Just as households are grappling with rising costs, so too are small and family businesses and wages have grown significantly in recent years.
“This decision further underlines the need for the state government to ease the pressure on businesses. The best way they can do that is to reduce payroll tax.”
