The minimum wage in Western Australia has been increased by $13 per week, exceeding the state Treasury's inflation forecast for 2016-17 of 1.75 per cent.
The WA Industrial Relations Commission ruled on Friday to lift the minimum wage from $679.90 per week to $692.90 per week, up 1.9 per cent, from July 1.
The commission said the decision gave regard to factors including meeting the needs of the low paid, contributing to improved living standards for employees, protecting workers who may be unable to reach an industrial agreement and the capacity of employers to bear the costs.
"The economic circumstances of WA are significantly different from previous years when the strength of the WA economy, and its strength relative to the national economy, justified awarding a minimum wage increase greater than the national increase," the commission said.
"Maintaining employees in their employment and maintaining their hours of work is important in the current economic climate in WA."
The state government had recommended a 1.25 per cent increase, which was in line with the WA Treasury's inflation estimate for the current financial year.
Unions WA wanted a 4.4 per cent or $30 per week increase, arguing it was essential to address the ever widening gap between low paid workers and the rest of the state's workforce.
The Chamber of Commerce and Industry WA wanted no change, saying the minimum wage in the state was already $24 per week higher than the national rate and hampered small businesses trying to create jobs.
About 2.2 per cent of WA's working age population of 1.77 million people - or some 38,940 workers - are paid the minimum wage.
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