WA public sector pay rises capped

Public sector annual pay rises in Western Australia have been capped at 1.5 per cent, sparking outrage from unions, but the treasurer says it is appropriate given the state's financial woes.

Mike Nahan said the cap was in line with the inflation rate and would provide an estimated $825 million in savings, which would be reflected in the 2016-17 state budget.

It was announced in the mid-year review in December that wage rises would be capped at the inflation rate.

The revised policy applies to all industrial agreements expiring on or after June 1.

Dr Nahan said salary costs for the state's 140,000 employees remained the largest expense across the public sector, accounting for about 40 per cent of total recurrent spending in 2015-16.

The treasurer said over the past 10 years there had been substantial pay increases to WA's public servants and they now had the highest wages and best conditions in Australia.

The wage policy was fair, reasonable and appropriate given the state's fiscal problems and should be accepted by workers, Dr Nahan said.

While the unions could go to the Industrial Relations Commission, Dr Nahan thought it was unlikely.

He also hoped there would not be major industrial disruptions leading up to the March 2017 election.

But, with 17 Enterprise Bargaining Agreement negotiations to be held before the election, the decision has already been criticised by unions.

CPSU/CSA state branch/general secretary Toni Walkington said the treasurer appeared to want to create an argument with public servants before the bulk of negotiations even began.

"Our members will approach the next round of bargaining sensibly and rationally, with resolute determination for an outcome that respects the valuable work they do and encourages a robust public service," she said.

"They will not be distracted from their goal by chest-beating tactics from the Barnett government."

Unions WA secretary Meredith Hammat said the pay cap would be felt hardest by low-paid workers, such as those who clean schools and hospitals.

WA Police Union president George Tilbury said the state government needed to be fair and reasonable.

"It's not negotiating when the government says `take it or leave it, this is what it is'," he told reporters.