ECEC sector awaits Fair Work Commission’s 2024 Modern Award wage increase decision

The early childhood education and care (ECEC) sector will be watching the results of the Fair Work Commission’s (FWC) Annual Wage Review with heightened interest this year, as the broader question of step changes to educator wages remains in view. 

The FWC is expected to release its 2024 decision at 10:30am on Monday 3 June, with an expert panel concluding on wage increases for the National Minimum Wage and also for Modern Award Wages. 

This year’s decision is of particular relevance given the Federal Treasurer Jim Chalmer’s decision to defer including a financial provision to increase educator wages in the 2024 Budget in lieu of uncertainties around the FWC’s wage review decision and ongoing Gender Pay Equity Research. 

“The Government is also getting wages moving again through supporting award wage increases for aged care workers and committing to providing funding towards a wage increase for early childhood education and care workers, with details to be settled following Fair Work Commission processes,” he stated in the Budget overview. 

Notably, Dr Anne Aly MP, Minister for Early Childhood Education, also referenced the wage review as a key step when asked about educator pay rises in a doorstop interview at Goodstart Early Learning’s Garran service on Thursday 30 May saying “We’ll, we’ve got the Fair Work Commission, it will be making its decision on Monday. And so we’ll take our cue from there and it will go from there.”

Last year’s 5.75 per cent unlikely to be matched as CPI drifts lower 

Looking ahead to the FWC’s review outcomes, expectations of last year’s 5.75 per cent increase being matched are somewhat subdued given the large weighting cost of living concerns as measured by inflation had on the Review Panel’s decision making last year and the fall in core inflation levels since. 

That being said, inflation was not the only focus of the Panel last year as they also cited efforts to address long standing gender pay gap issues in female dominated sectors such as ECEC. 

At 5.75 per cent, the increase in Modern Award wages last year was a step higher than 2022, which itself was materially higher than previous years. 

The increases came into effect on 1 July 2023 with those team members on the Children’s Services Award 2010 and Educational Services (Teachers) Award 2010 seeing the 5.75 per increase passed through. 

The increase saw Certificate III in Children’s Services Level 3.1 educator wages grow to around $26.16 an hour and Diploma in Children Services Level 4.1 educator earning $30.84 an hour.

This year’s FWC decision will be released at 10:30am on Monday 3 June.