State award rates of pay will increase by $16 per week for base level classifications and 2.3 per cent for trade level positions and above from July 1 following the WA Industrial Relations Commission State Wage Case decision on June 14.
This decision largely applies to small unincorporated businesses (eg sole traders and partnerships) and some not for profit organisations.
For these organisations the decision recognises the difficult economic circumstances facing the WA economy and has resulted in the gap between the state and federal minimum wage fall from around $20 per week to $14 per week.
The new State minimum wage will now increase to $708.90 compared to the national minimum wage of $694.90 per week.
However, the increase sits significantly above the inflation rate for Perth, which may make it difficult for businesses to accommodate the increase without adjusting working hours.
The increases apply to about 300,000 employees who are paid the minimum wage or award rates in the State industrial relations system.
The majority of WA businesses are covered by the national industrial relations system, with the Fair Work Commission recently increasing the modern award rates of pay by 3.3% from the first full pay period on or after 1 July 2016.
►Have a question about increases to the award rates of pay? Contact CCI’s Employee Relations Advice Centre now on (08) 9365 7660 or firstname.lastname@example.org for expert advice.