State Minimum Wage and Award Minimum Wage increased
The Commission, of its own motion, has issued a State Wage Order (SWO) to adjust the minimum wage for employees under the Minimum Conditions of Employment Act 1993, award minimum wages, and minimum rates of pay for employees with disability operating under the Supported Wage System.
The Minister, union, industry and welfare bodies provided submissions for the consideration of the Commission in Court Session. Among these submissions, the Chamber of Commerce and Industry of Western Australia advocated a cautious approach to the setting of the State Minimum Wage (SMW), while UnionsWA and the Western Australian Council for Social Services proposed a significant increase of 7.359% to award wages. The Minister supported an increase in line with the Fair Work Commission decision in the 2023-24 Annual Wage Review, which increased the National Minimum Wage (NMW) and modern award minimum wages by 3.75%.
Additionally, all parties supported the re-alignment of the SMW from the C14 award rate to the C13 award rate, which would increase the SMW by a one off 2.3%.
The Commission in Court Session considered several key factors including the State and national economies, living standards and needs of low paid employees, and capacity of employers as a whole to bear the cost of increased wages and salaries.
The Commission in Court Session concluded that an increase in the SMW and award minimum wages was necessary to meet the needs of low-paid employees without imposing undue financial strain on employers, increasing award minimum wages by 4.0% and the SMW by 6.3%, comprising the one off increase of 2.3% followed by a 4% increase.
The decision can be read here, and supplementary decision here.