Modern Award Wages to increase by 4.6% post Fair Work Commission Review

The Fair Work Commission’s annual wage review has been completed with the expert panel determining a 5.2 per cent increase in the National Minimum Wage and 4.6 per cent increase in Modern Award Wages. 

This year’s decision was driven by a range of factors impacting Australian society, particularly the sharp rise in inflation that has contributed to the erosion of workers’ real value of wages and in turn reduced living standards. 

“There has also been a sharp rise in the cost of living since last year’s Review,” the Commission concluded, noting that the changes in the economic context “weigh in favour of an increase in the National Minimum Wage and modern award minimum wages.”

The Commission was also conscious in reaching its decision that the low paid are “particularly vulnerable in the context of rising inflation” which was a key driver as to why they decided to provide a higher increase to non-Award minimum wage recipients as it felt that the “present circumstances warranted an approach which affords a greater level of support to the low paid while seeking to constrain inflationary pressures.”

4.6 per cent increase substantially higher than previous years

At 4.6 per cent, the increase in the Modern Award minimum wages this year is higher than in previous years, reflecting the unusual economic circumstances that the country finds itself in this year. 

The increases will come into effect on 1 July 2022 with those team members on the Children’s Services Award 2010 and Educational Services (Teachers) Award 2010 seeing the 4.6 per increase passed through. 

The increase is expected to see a Certificate III in Children’s Services Level 3.1 educator now earning $24.74 an hour (up from $23.09 last year) and a Diploma in Children Services Level 4.1 educator earning $29.17 an hour (up from $27.89 last year.)

Level 1 Early Childhood Teachers are expected to see their weekly rates increase to $1,223.50 (up from $1,169.70) after the introduction of the new Award structures. 

These estimates are indicative only, and employees are encouraged to check with individual payroll teams to confirm the details.