WA minimum wage increased 3 per cent

The Western Australian Industrial Relations Commission has moved to increase the state's minimum wage more than 2.8 per cent, slightly above the recent rise granted by the federal Fair Work Commission.

The decision means that the WA minimum wage will increase by $18.20 per week from $627.70 per week to $645.90 per week from July 1.

Last week, the FWC approved a 2.6 per cent increase in the minimum wage, a rise of $15.80 per week, to $622.20 for Australia's 1.5 million lowest paid workers.

All state award wage rates will also increase by $18.20 per week.

The increase applies to employees and employers who are in the WA industrial relations system. This is mainly businesses which are not companies and WA public servants.

In a statement the Commission said:

• The WA minimum wage is required to be set having regard to conditions in WA.
• The WA economy is growing strongly now however there are already signs that growth in the domestic economy is easing.
• The unemployment rate is above average for the State at a time when it is desirable for there to be strong earnings growth to support the growth of the local economy.
• Prices growth overall in the State is relatively subdued.
• Wages growth is slowing and has been relatively low in the hospitality and retail sectors.
• Correspondingly, WA is recorded as having the highest level of income inequality in the country and has become a significantly more expensive place to live with the pressure of cost of living increases being hardest felt by people on low incomes.

It estimated that approximately 2.2 per cent of WA's workforce of almost 1.3 million, or 27,984 WA employees, were paid at the minimum wage.