Modern Award Wages increased by 3.0% post Fair Work Commission Review

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 3.0 per cent on July 1, 2019.

The rise will see an educator with a Certificate III in Children’s Services starting out in the early childhood education and care (ECEC) sector earn $22.70 an hour – changing 66 cents per hour and moving from $22.04 last year, and an educator with a Diploma in Children Services starting out in ECEC now earning $24.33 an hour, up from $23.62 last year.

Early Childhood Teachers, at entry level classification, will see their hourly pay rate increase from $26.23 to $27.02 – a rise of 79 cents per hour.

The panel, which is made up of the Commission President, three full time members who are also Commission members, and three part time members who are not, are charged with evaluating the current economic, social and workplace relations landscapes before concluding on what an appropriate increase should be passed.

In particular, this year the panel noted that the Australian economy had performed moderately well in the period under review, and that business conditions were consistent with trend growth,  determining that these relatively strong economic circumstances provided an opportunity to improve the relative living standards of those on lower incomes.

The 3.0 per cent increase was 0.5 per cent lower than last year’s determination, with the Commission citing a slightly slower economy this year compared to last year, meaning a larger increase was difficult to justify. They also noted that changes in tax rates legislated in 2018/19 had seen disposable incomes, in particular in the lower income brackets, marginally improved and concluded that these benefits also prevented a larger increase.

For further information on the decision please click here.