The Western Australian Industrial Relations Commission issued the State Wage Case on 10 June 2016. The following increases have effect from 1 July 2016.
The minimum weekly rate of pay for adult employees employed under the State system (i.e. by employers who are not national system employers) is to increase by $13.00 to $692.90 per week. The Commission also adjusted award wage rates by an increase of $13.00.
The Commission stated that this decision will provide a modest increase above the costs of living, as measured by Consumer Price Index. The CPI is said to be the best indicator of the adjustment needed to maintain the real value of the minimum wage, and the overall rate of CPI growth is the more rigorous and accurate means available of tracking increase in the cost of living.
The decision to grant an increase of a flat amount, differed from last year’s decision in which a percentage increase was made (2.1%). The Commission stated that “we have decided to focus on the needs of the lower paid at this time, and a flat increase reduces the effect on labour costs that a percentage increase would otherwise impose on employers.”
This increase is less than the increase granted in the Fair Work Commission's Annual Wage Review, that was handed down on 31 May 2016.
The Commission believes that based on the evidence before them and submissions presented to them, the increases are sustainable in the current economic climate and meet social considerations of fairness required by their statutory direction.
Note: Please refer to Schedule 1 of the State Wage Case 2016 General Order, which contains a list of awards not subject to this increase.
To see the full State Wage Case 2016 decision, click here.
To see the State Wage Case General Order 2016, click here.
More information to come soon on:
- Federal income threshold; and
- State prescribed amount for claims.