Modern Award Wages increased by 2.5% post Fair Work Commission Review

Modern Award Wages increased by 2.5% post Fair Work Commission Review

by Jason Roberts

June 18, 2021

The Fair Work Commission’s annual review of the national minimum wage and modern award minimum wages has been completed with the expert panel determining that wages will rise by 2.5 per cent on July 1, 2021.

 

The panel concluded that “There was a broad consensus in the submissions before us that the current performance of the economy has exceeded expectations and that the economic recovery is well underway.”

 

Panel members acknowledged and considered the impact of the pandemic and the extent of the recovery, which has varied between and within industry sectors.

 

“Taken overall, the  change in  circumstances—the  markedly better economic environment, the scheduled Superannuation Guarantee increase and the tax-transfer changes—weigh in favour of a higher increase than was awarded in last year’s Review.”

 

The 2.5 per cent increase agreed upon is higher than last year but lower than the three prior years. 

The increase is expected to see an educator with a Certificate III in Children’s Services starting out in the early childhood education and care (ECEC) sector earn $23.31 an hour – changing 57 cents per hour and moving from $22.74 last year, and an educator with a Diploma in Children Services starting out in ECEC now earning $25.26 an hour, up from $24.64 last year.

 

Early Childhood Teachers, at entry level classification, are expected to see their hourly pay rate increase from $27.49 to $28.18 – a rise of 69 cents per hour – although a recent ruling by Fair Work that could see rates increase by as much as 10 per cent has not been factored in. 

 

To read the ruling click here

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