Starting July 1, 2025, more than 300,000 low-paid workers in Western Australia (WA) will receive a weekly pay rise of $36, following a major decision by the WA Industrial Relations Commission (WAIRC).
The state minimum wage will increase from $917.80 to $953 per week, representing a 3.75% pay rise, aimed at easing the pressure from the ongoing cost-of-living crisis.
This increase surpasses the national minimum wage boost of 3.5% announced by the Fair Work Commission, which brings the national figure to $948 per week. The WA decision reflects the state’s strong economy and the continuing financial challenges faced by low-income earners.
Why the Increase?
WAIRC Chief Commissioner Stephen Kenner emphasized that inflation from 2021 to 2024 has significantly eroded the purchasing power of workers, particularly for essentials such as food and housing.
“This rise will provide low wage earners with a real wage increase,” Kenner said, adding that the decision aligns with broader wage movements across WA.
Breakdown of the Wage Adjustment
The new minimum wage structure effective from July 1, 2025, is summarized below:
| Details | Amount |
|---|---|
| Previous Minimum Weekly Wage | $917.80 |
| New Minimum Weekly Wage | $953.00 |
| Total Weekly Increase | $36.00 |
| Percentage Increase | 3.75% |
| Affected Workers | 300,000+ |
Stakeholder Reactions
- State Government: Supported at least a 3.5% increase, aligning with the national wage decision.
- Unions WA & WA Council of Social Services (WACOSS): Had lobbied for a 4.5% increase, citing skyrocketing rental and food costs.
- Chamber of Commerce and Industry (CCI): Argued for a modest 2.5% rise, warning the actual increase exceeds inflation and could result in job cuts or reduced hours due to businesses struggling to absorb extra costs.
“In a wealthy state like WA, it’s unacceptable that some workers are still sleeping in cars,” said Rikki Hendon, Unions WA Secretary. “This rise is necessary and overdue.”
However, Peter Cock, CEO of the Chamber of Commerce and Industry, warned that this increase might not be sustainable for small businesses:
“Without productivity gains, this rise could force businesses to cut jobs or reduce staff hours.”
Cost-of-Living Context in WA
The Commission noted the sharp rise in essential living expenses, particularly:
- Housing affordability concerns
- Grocery price spikes
- Stagnant wages for the lowest income brackets
Despite WA’s nation-leading economic performance, workers have felt their real earnings decline year over year due to inflationary pressures. This decision is intended to rebalance wage equity and offer financial relief.
The $36 weekly increase in WA’s minimum wage is a critical step toward improving living standards for the state’s most vulnerable workers.
While some businesses may struggle with added costs, the decision reflects a broader goal of economic fairness and wage sustainability.
FAQs
When will the new minimum wage in WA come into effect?
The new minimum wage of $953 per week begins July 1, 2025.
Who is eligible for this minimum wage increase?
Over 300,000 workers covered by WA’s state industrial relations system will benefit from this pay rise.
How does WA’s minimum wage compare to the national rate?
WA’s new rate of $953/week slightly exceeds the national minimum wage of $948/week following the Fair Work Commission’s decision.