Children’s Services Award changes finalised to address gender-based undervaluation

In a landmark ruling, the Fair Work Commission (FWC) has finalised extensive changes to the Children’s Services Award 2010, aimed at addressing long-standing gender-based undervaluation in the early childhood education and care (ECEC) sector. The outcome is a new classification structure and a phased increase to minimum wage rates, representing a substantial shift in the recognition of educators’ work value.

These changes follow a priority review process initiated under s.157 of the Fair Work Act 2009. The FWC Expert Panel determined that children’s services employees (CSEs) had been historically undervalued due to gender-based assumptions, with the variations deemed necessary to meet the modern awards objective of a “fair and relevant safety net” of terms and conditions.

Key dates and phasing-in approach

The determination will take effect from 1 March 2026, with the changes applying to individual employees from the start of their first full pay period on or after that date.

To support sector readiness, the wage increases will be phased in over time, with:

• An initial increase of 5 per cent applying to most classifications from 1 March 2026
• Further annual increases each 30 June to maintain alignment with the Caring Skills benchmark rate

A simplified classification structure: From 30 to 8 levels

A new classification framework will replace the current 30-tiered structure with eight streamlined levels. These reflect formal qualifications, experience and responsibilities in line with sector practice and the Caring Skills benchmark.

Increases across the previous classifications range from 9.4 to 27.8 per cent, to be phased in gradually.

Operational impacts for providers

1. Employee translation required

All employers must use Schedule I the Classification Translation Arrangements to reclassify existing employees. This includes detailed mapping of former levels (e.g. Level 3.1 becomes Level 3 – Qualified Educator).

2. Cooks classified under CSE framework

Cooks holding or working toward an approved early childhood qualification, and who may be required to work directly with children, must be paid at the relevant CSE classification level.

3. Removal of qualification allowance

The previous allowance for Directors and Assistant Directors holding a Graduate Certificate in Childcare Management has been abolished. The new minimum pay is determined solely by the responsibilities of the role, not additional qualifications.

4. Clarification for OSHC roles

Definitions for Levels 6 and 8 have been updated to ensure correct classification in out-of-school hours care environments, where roles often differ from centre-based services.

While many employers participating in the Early Childhood Education and Care Multi-Employer Agreement or the Worker Retention Payment (WRP) scheme already pay above award, the FWC acknowledged that costs will rise over time as the full wage increases take effect.

Importantly, the WRP scheme is only funded until November 2026, and the Commonwealth has not committed to further financial support beyond this date.

This determination is more than a technical update, it is a significant step towards improving pay equity and recognition for educators. By ensuring minimum rates reflect the true value of work performed, the sector stands to benefit from improved retention and attraction, particularly for women, the majority workforce in ECEC.

Read the Fair Work Commission’s Court Decision here.

Read the Fair Work Commission’s Court Determination here.