The State minimum wage will rise by 3.75% to $953 a week from July 1, which will affect about 27,000 employers and more than 300,000 employees.
The WA Industrial Relations Commission (WAIRC) handed down the decision today, lifting the minimum wage by $34.50 from the current rate of $918.50/week.
The change also applies to minimum award rates. It follows the Fair Work Commission’s decision last week to raise the national minimum wage by 3.5%.
The WAIRC noted that cost of living was a significant factor in considering this year’s case.
“Whilst inflation is now moderating, State Minimum Wage and minimum award wage earners have had reductions in their purchasing power as a result of the inflation ‘spike’ over the 2021-2024 period,” it said in a statement.
“The increase will provide low wage earners in the State industrial relations system with a real wage increase, and is aligned with wage movements in the community generally.”
WA is the only state that still sets its own State wage, rather than using the national system, and the State minimum wage is now higher than the national minimum wage.
Biggest blow on small businesses
CCIWA CEO Peter Cock said small and family businesses will be the hardest hit by the increase, with wages – the biggest cost for businesses – skyrocketing since the COVID-19 pandemic.
“Small and family businesses are going to the wall every single day, and most of them will tell you that rising costs are to blame,” he said.
“Insolvencies are on the rise and the simple fact is that without businesses there are no jobs.”
“CCIWA will continue to work to support the many businesses in this State who are struggling with rising costs.”
Call to simplify wage system
Dr Cock said having two wage systems added unnecessary complexity for employers and that aligning WA with other states would remove “red tape burden on our small and family businesses in WA”.
“Having a separate State minimum wage, which applies to a much smaller section of the workforce, simply creates confusion in an already complex industrial relations space,” he said.
“Small and family businesses tell us they’re spending more and more time on red tape and compliance, and this is one area where a common-sense change could reduce some of that burden.”
CCIWA’s Employee Relations Helpline provides an Industrial Award Subscription Service which includes up to date communication with award variations, allowing businesses to be across crucial changes. Our employee relations experts can also perform Wage Spot Checks to assist employers with minimising underpayment risks.
For more information on minimum and award rates, contact the Employee Relations Helpline on 08 9365 7660 or [email protected].
