Modern Award wages, including ECEC, to rise by 3.75% after FWC 2024 annual review

The Fair Work Commission’s 2024 annual wage review has been completed with the expert panel determining a 3.75 per cent increase in all Modern Award Wages, including those used in the early childhood education and care (ECEC) sector.

This year’s result is lower than last year’s 5.75 per cent increase, with the FWC noting that a range of factors including a more subdued inflation outlook and upcoming tax cuts as factors that mitigated a higher increase and outweighed ongoing concerns around cost of living pressures for low income households. 

“We consider that it is not appropriate at this time to increase award wages by any amount significantly above the inflation rate, principally because labour productivity is no higher than it was four years ago and productivity growth has only recently returned to positive territory,” the Commission said.

Further moderating factors include the upcoming Stage 3 tax cuts, Budget 2024 cost of living measures and the forthcoming increase to the Superannuation Guarantee contribution.

“The increase of 3.75 per cent which we have determined is broadly in line with forecast wages growth across the economy in 2024,” the Commission noted. “We consider therefore that this increase is consistent with the forecast return of the inflation rate to below 3 per cent in 2025.” 

3.75 per cent increase starts on 1 July 2024

At 3.75 per cent, the increase in Modern Award wages this year is a full two percentage points lower than that agreed upon last year, bringing the rate of change back down towards levels more consistent with pre-COVID 19 rises. 

The increases will come into effect on 1 July 2024, with those team members on the Children’s Services Award 2010 and Educational Services (Teachers) Award 2010 seeing the 3.75 per increase passed through. 

The increase is expected to see a Certificate III in Children’s Services Level 3.1 educator now earning $27.14 an hour (up from $26.16 last year) and a Diploma in Children Services Level 4.1 educator earning $32.00 an hour (up from $30.84 last year.) 

Level 1 Early Childhood Teachers are expected to see their weekly rates increase to $1,342.69 (up from $1,293.85) after the introduction of the new Award structures. 

To read the FWC decision paper please click here.