The minimum wage in Western Australia will increase by 5.25 per cent, giving the lowest workers in the state an additional $ 40.90 per week, following a decision by the WA Industrial Relations Commission.
Key points:
- The 5.2% wage increase is below Perth’s 7.6% inflation rate
- WA is experiencing a record low unemployment
- The minimum wage in WA will now be $ 820 a week
The increase is lower than the WA unions and the WA Social Services Council [WACOSS] had been looking for and is below the Perth inflation rate of 7.6 per cent.
However, it is slightly ahead of last week’s decision by the Federal Fair Labor Commission to raise the national minimum wage by 5.2 percent.
Chief Commissioner Stephen Kenner said that while the state’s economy was strong, some low-income households had difficulty reaching the end of the month given the rate of inflation.
“This has had a significant impact on the cost of living of paid patients,” he said.
“A substantial body of data on low-income households and the difficulties they face in raising the cost of living in terms of rents, food and energy costs and ‘rising fuel prices’.
Entrepreneurs face higher costs
Commissioner Kenner noted that since last year’s decision, health and border restrictions in WA had eased and there was record low unemployment.
He said the IRC was considering raising costs for employers, including changes to mandatory retirement contributions.
There was a risk that companies would pass on the rising costs to consumers.
The minimum wage will increase to $ 819.90 per week, compared to $ 779, while other salaried workers will get increases of 4.65%.
The increase has been welcomed by unions and WACOSS, with UnionsWA Secretary Owen Whittle urging all employers to raise wages.
“This should be the first step in ensuring that all workers receive a significant pay rise,” he said.
“We know that the cost of living in WA has been the highest in the country, so we need to see a higher minimum wage increase than the federal minimum wage increase.”
Help families
WACOSS Executive Director Louise Giolitto said it would make a big difference for families.
“We know the families in Western Australia are really struggling right now,” he said.
“This will help them keep the ceilings on their heads, the lights on and three meals on the table.
“We know that in Western Australia we have an inflation rate of 7.6%, so to some extent, real wages have fallen slightly.
“But we’re glad it has at least kept pace and is slightly better than federal wages.”
He said the community services sector had experienced a 20-30% increase in people asking for income support.
Notice from the Chamber of Commerce
But the Chamber of Commerce said it was not the time to raise labor costs to this degree.
He said the decision “further widens” the gap between the state and federal minimum wage and would “accumulate” higher costs for individual traders and associations at a time of rising material and labor costs.
WA companies would be even more at a disadvantage compared to most companies covered by the national system, the chamber said in a statement.
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Posted 1 hour ago 1 hour ago, June 23, 2022 at 8:48 AM, updated 1 hour, 1 hour ago, Thursday, June 23, 2022 at 9:24 AM