The State minimum wage will increase by $40.90 a week to $887.40 from July 1, further widening the gap between the State and Federal minimum wage.
The WA Industrial Relations Commission (WAIRC) ruling, handed down yesterday (June 23), represents a 5.25 per cent increase to the current minimum wage.
For award rates of $887.40 per week and above, the commission awarded a 4.65 per cent increase.
The decision comes a week after Australia’s Fair Work Commission lifted the national minimum wage by $40 per week from July 1, raising it to $812.60 or $21.38 an hour, a 5.2 per cent increase.
Whilst not limited to any particular sector, the industries most likely to be impacted are the retail, hospitality and tourism sectors.
“Per week, this is a greater increase than was ordered by the recent Federal Fair Work Commission decision,” CCIWA Chief Economist Aaron Morey said. “It further increases the gap between the State and Federal minimum wage.”
Morey said the decision will pile on higher costs for WA’s sole traders and partnerships at a time when they’re grappling with surging costs of material and labour.
“It further disadvantages WA’s smallest businesses who are governed by the antiquated WA industrial system, compared to the majority of WA businesses, covered by the national system,” he said.
Morey said the State wage decision further increases the imperative for WA sole traders and partnerships to consider exiting the State system, and CCIWA is at the ready to provide them with the advice they need.
“While many focus on the experience of workers in these decisions, our smallest businesses are also at the mercy of rising costs and are just as equally deserving of our empathy and compassion,” he said.
For more information on IR changes and awards, contact CCIWA’s Employee Relations Advice Centre on (08) 9365 7660 or [email protected].