The Western Australian Industrial Relations Commission has increased the State Minimum Wage by 5.3%, which brings the State Minimum Wage to $863.40 per week from 1 July 2023.  The Commission also increased award rates by 5.3% from that time.

The increases apply only to employees who are paid the minimum wage or award rates in the State industrial relations system.  Approximately 27,000 employers and more than 300,000 employees are estimated to be affected by the decision. 

In making its decision, the Commission is required to consider a broad range of economic and labour market factors, and social and equity considerations.

The Commission noted that both last year and this year, the focus has been on cost of living pressures given the high inflationary environment and rising interest rates in tandem with a continuing tight labour market. On this occasion, whilst inflation remains elevated, the available evidence suggests it will moderate in the year ahead. A balance must be struck having regard to the overall economic environment and relevant social and industrial factors.

While the State economy remains sound, current data and the forecasts for the year ahead, are  pointing to  a slowdown in domestic growth, increasing downward pressure on household spending, with an uptick in unemployment, albeit from a 15-year low.

The decrease in household spending as consumers tighten their belts further in response to high interest rates and prices, evidenced most recently by the RBA’s latest cash rate increase and moderating retail spending, will likely have an impact on those businesses most prevalent in the State system. The decline in overall aggregate business profitability, from 26.4% considered in last year’s proceedings to 8.8% in this year’s case, was also a relevant consideration.

The Reasons for Decision can be found here.

The General Order can be found here.

For more information please contact Susan Bastian, Registrar, on (08) 9420 4444.