The Fair Work Commission's Annual Wage Review contains some promising news for early childhood education and care workers – starting with a 3.75% modern award minimum wage rate rise.     

BY HEJIRA CONVERY, KINDICARE

JUNE 4, 2024

The Fair Work Commission has completed its Annual Wage Review, and its decision to raise the National Minimum Wage and all modern award minimum wage rates by 3.75% will have a direct impact on 2.6 million workers, including those people earning modern award wages in the early childhood education and care (ECEC) sector.  

This wage rate increase comes into effect from 1 July 2024, and in dollar terms, it represents a modest wage boost for ECEC workers. 

For instance, it’s expected that: 

• The hourly rate of a Certificate III in Children’s Services Level 3.1 educator will rise from $26.18 to $27.16 
• The hourly rate of a Diploma in Children’s Services Level 4.1 educator will rise from $30.84 to $32, and 
• The weekly rate of a Level 1 Early Childhood Teacher will rise from $1,293.80 to $1,342.37. 

The 3.75% wage rate rise only slightly eclipses the official inflation rate of 3.6%, with the Fair Work Commission taking into account the benefit that Stage 3 tax cuts and the Budget’s cost-of-living measures will bring.  

However, there is the promise of a further wage rise for the ECEC sector.     

As part of its Annual Wage Review, the Fair Work Commission has announced that it’s focused on the timely resolution of gender undervaluation issues arising in respect of certain modern awards.  

With women making up 97% of the ECEC workforce and their work being historically undervalued, the Fair Work Commission has identified ECEC as a priority area for attention.  

The Commission will soon begin proceedings to examine and address gender undervaluation in the ECEC sector (and other undervalued, gender-impacted industries), and extra wage increases are expected.  

To see exactly how much more ECEC workers may be paid will require patience, but the Fair Work Commission says it intends to complete the proceedings by next year’s Annual Wage Review.  

The Federal Government has committed to fund a pay increase for childcare (and aged care) workers, and set aside big money for this, but they’re waiting for the Fair Work Commission to complete its processes before putting a value on this long-awaited wage increase.  

So, for now, people earning modern award minimum wages in ECEC can enjoy a little bit of extra pay come 1 July, 2024, and we look forward to seeing greater improvements in ECEC wages soon-ish.