Move is said to 'offset inflation and cost-of-living pressures'
The Western Australian (WA) Government enhanced the public sector wages policy to include a 3% wage increase per annum for two years and a sector-wide, one-off $2,500 cost-of-living payment.
Amidst the cost-of-living pressure in the State, the government agreed to make a significant wages policy which will take immediate effect for industrial agreement offers that have already been accepted, the government said in a media release.
What do the new policies mean?
According to the government, the new wage policy meant that a Level 3 patient care assistant, whose annual salary is $55,322, will now receive a 7.5% increase in the first year, including the one-off cost-of-living payment.
It further said that part-time and casual public sector workers under the policy would also get the same wage rises and a pro-rata cost-of-living payment.
“Workers covered by industrial agreements that have already been accepted based on the original policy announced in December 2021 will receive the difference and have the $2,500 cost of living payment paid in coming weeks,” the government said.
“This means teachers, doctors and transit guards will receive the $2,500 payment very shortly, in addition to the new increase in wages,” it added.
Additionally, the government said that WA public sector workers would also benefit from the 0.5% superannuation guarantee increase per year, on top of the 3% yearly wage increase.
The policy changes, according to the government, will benefit over 150,000 public sector workers and are anticipated to cost $634mil in the next four years. This brings the total wages policy to $2.54bil over the next four years.
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Why make changes in the wages policy?
According to Premier Mark McGowan, the improved public sector wages policy aims to offset the cost-of-living pressures experienced by Western Australians.
“We’ve been listening and looking at it to ensure any adjustments that can be made to our public sector wages policy best respond to the current environment sensibly and reasonably,” McGowan said.
“Our public sector workers deserve this wage increase, and I am glad we can deliver it responsibly given our strong budget management,” he added.
Meanwhile, Industrial Relations Minister Bill Johnston said that the policy hits the right balance and provides a pay raise for workers, given the current inflationary pressures.
“Unions which have already accepted an offer under the original wages policy, announced in December 2021, will not miss out under these changes to bolster the State wages policy,” Johnston said.
“It means the policy will apply to industrial agreements that had been accepted prior to these changes, and workers will also receive these same benefits,” he added.
McGowan reminded the public that the cost-of-living payment would go to every public sector worker to acknowledge their efforts and work.