State Minimum Wage and Award Minimum Wages increased by 3.75%
The Commission, of its own motion, has issued its decision in the State Wage order proceedings 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 a disability operating under the Supported Wage System.
The Minister for Industrial Relations, and union, industry, and welfare bodies made submissions to the Commission in Court Session. Among these submissions, UnionsWA proposed an increase of 4.5% to award wages and an increase in the State Minimum Wage of $41.34 per week. The Western Australian Council of Social Service Inc proposed an increase of 4.5%. The Chamber of Commerce and Industry of Western Australia (Inc) proposed an increase of 2.5%. The Minister for Industrial Relations did not specify an amount, but supported an increase of no less than the Fair Work Commission’s Annual Wage Review 2024-25 increase of 3.5%. The Western Australian Local Government Association contended that any increase in wages should be fair, while also taking into consideration the current costs environment for Local Governments.
As in previous years, the cost of living was a major consideration when determining the State Minimum Award Wage and an increase in minimum award wages. Recent high inflation and price increases in food and housing in particular, have seen a reduction in spending power for minimum wage earners. The Commission also recognised the rising costs for small businesses. Other key factors, including the State and national economies, living standards, the needs of low paid employees and the capacity of employers to bear the cost of increased wages, were all taken into consideration by the Commission in Court Session.
After considering relevant factors, the Commission in Court Session increased the State Minimum Wage and minimum award rates of pay by 3.75%, with proportionate increases for juniors, apprentices, and trainees. This will lift the State Minimum Wage to $953 per week. This increase will take effect from 1 July 2025.
A General Order will issue shortly.
The decision can be read here.