The 2025 State Wage Case 

The Western Australian Industrial Relations Commission has increased the State Minimum Wage by 3.75%, which brings the State Minimum Wage to $953.00 per week from 1 July 2025. The Commission also increased award rates by 3.75% 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 this year’s case, as for 2023 and 2024, the cost of living has been a significant factor. 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. 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.

The State economy remains strong, as one of the best performing in the nation. The labour market is particularly robust, with very solid, although easing, wages growth in the community generally. As a result, household consumption and discretionary spending have also been elevated. Business investment also remains robust, along with housing investment. Despite these factors, low levels of productivity, especially in the market sector, remain of concern. So too, are risks to the outlook, resulting from trade tensions between the United States and other countries, especially China, being a major trading partner with Western Australia. This is reflected in some measures of business confidence.

The General Order can be read 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. 

People interested in making a submission are invited to address those issues.

Who will be covered by the 2025 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.