Pay rise for West Australian public sector workers in a bid to offset rising inflation

Australia – The West Australian government will give public sector workers a 3 per cent annual pay rise, over two years, in a bid to offset rising inflation and cost-of-living pressures. 

Western Australia is the largest state in Australia. Industrial action has been escalating in recent weeks over the West Australian government’s wages policy. Many workers urged the state to lift its 2.75 per cent wage cap to reflect the soaring cost of living amid high inflation.

Public sector employees will also receive a one-off $2,500 payment from the West Australian government. Public service employees, including the teachers, doctors and transit guards will receive the difference and have the one-off $2,500 payment paid to them in the coming weeks. The new offer by the government also includes a 0.5 per cent superannuation guarantee increase per year for the next two years. 

Mark McGowan, the Premier of Western Australia, said that the government wanted to recognise workers for their efforts during the Covid-19 pandemic. He reportedly said, “We are going to change our wages policy and make it more generous for our public sector workforce, who are doing a terrific job, particularly over the Covid-19 pandemic period.”

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About the new wage policy

The new policy will apply to more than 150,000 public sector workers, with an expected price tag of $634 million, over the coming four years. The total wage bill will reach $2.54 billion over that period.

Mark McGowan reportedly said, “Maintaining a good budget is very important to ensure that we have enough money to spend on what is important.” Maintaining the state’s finances is also important for the government. 

The state’s Industrial Relations Minister Bill Johnston also said the new wage policy offered the “right balance”, which means the state government was doing all it could to alleviate cost-of-living pressures while maintaining the state’s finances.