The 2024 State Wage Case
The Western Australian Industrial Relations Commission has increased the State Minimum Wage by a one off increase of 6.3%, which brings the State Minimum Wage to $918.60 per week from 1 July 2024. This takes into account the 2.3% increase resulting from the realignment of the C14 to the C13 classification rate in the Metal Trades (General) Award. and the 4.0% general increase. The Commission also increased award rates by 4% 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 in recent State Wage Cases, the focus had 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 over the past two years inflation measured by the Consumer Price Index has been very high, and well beyond the RBA target band of 2%-3%, the CPI rate for Perth has significantly eased from its peak of 8.6% in the December quarter 2022, to 4.1% in year end terms for the March quarter 2024.
While the State economy remains strong, current data and the forecasts for the year ahead, are pointing to some slowing of growth, as continued elevated, although easing, inflation dampens demand and household spending continues to pull back from higher levels over the last two years.
The General Order can be found here.
Relevant criteria
In making its decision, the Commission is required to consider the need to —
- ensure that Western Australians have a system of fair wages and conditions of employment; and
- meet the needs of the low paid; and
- provide fair wage standards in the context of living standards generally prevailing in the community; and
- contribute to improved living standards for employees; and
- protect employees who may be unable to reach an industrial agreement; and
- encourage ongoing skills development.
It is also required to consider:
- the state of the economy of Western Australia and the likely effect of its decision on that economy and, in particular, on the level of employment, inflation and productivity in Western Australia; and
- to the extent that it is relevant, the state of the national economy; and
- to the extent that it is relevant, the capacity of employers as a whole to bear the costs of increased wages, salaries, allowances and other remuneration; and
- the need to ensure that the Western Australian award framework represents a system of fair wages and conditions of employment; and
- relevant decisions of other industrial courts and tribunals; and
- any other relevant matters.
Who is covered by the 2024 State Wage Case General Order?
The General Order will apply to those employers and employees covered by the WA industrial relations system. To find out if you are covered by the State system, or for further information on your employment conditions, please contact Wageline on 1300 655 266.