The 2026 State Wage Case
The Western Australian Industrial Relations Commission has increased the State Minimum Wage by 4.75%, which brings the State Minimum Wage to $998.30 per week from 1 July 2026. The Commission also increased award rates of pay by 4.75% 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 there is heightened uncertainty and volatility arising from the Middle East conflict. Although the Western Australian economy has remained resilient with solid labour market conditions, strong investment and robust household consumption, rising costs, particularly fuel, have intensified pressures on low paid employees and small businesses.
Inflation has lifted to 3.9% to April 2026 and is expected to remain elevated above the Reserve Bank of Australia’s target band into 2026-27. The recent uptick in inflation has eroded the real wage gains achieved in 2025, and ongoing risks to household spending and business confidence underscore the need for a balanced approach that supports living standards while recognising the pressures facing small businesses.
A full copy of the decision 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 2026 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.