Modern Award wages, including ECEC, to rise by 3.50% after FWC 2025 annual review

The Fair Work Commission’s 2025 annual wage review has been completed with the expert panel determining a 3.5 per cent increase in all Modern Award Wages, including those used in the early childhood education and care (ECEC) sector.

This year’s increase is slightly lower than last year’s 3.75 per cent adjustment awarded in 2024. The Commission cited a more moderate inflation outlook and upcoming Stage 3 tax cuts as key reasons for its decision to limit the size of the increase, despite continued cost-of-living pressures for low-income households.

“The principal consideration which has guided our decision is the fact that, since July 2021, employees who are reliant on modern award minimum wages or the National Minimum Wage have suffered a reduction in the real value of their wage rates,” the Commission said. 

The Fair Work Commission acknowledged that the decline in real wages for those on minimum and modern award rates has primarily been driven by the inflation surge that began in 2021 and peaked in late 2022.

Over the past three Annual Wage Review decisions, the Commission chose not to implement larger increases to address this decline, citing concerns that doing so might contribute to sustained inflation.

“Living standards for employees dependent on modern award wages have been squeezed and the low paid have experienced greater difficulty in meeting their everyday needs,” the Commission said. 

The panel also considered several moderating factors, including the upcoming increase to the Superannuation Guarantee contribution rate, uncertainty related to changing US trade policies, and signs of weakness in award-reliant sectors such as accommodation and food services.

Wage changes effective on 1 July 2025

The 3.5 per cent wage will apply from 1 July 2025 and includes employees covered by the Children’s Services Award 2010 and Educational Services (Teachers) Award 2010.

Under the updated rates:

• A Level 3.1 Certificate III qualified educator in Children’s Services is expected to receive $28.12 per hour, up from $27.17

• A Level 4.1 Diploma qualified educator will receive $33.12, per hour, up from $32.00

• Level 1 early childhood teachers will receive a weekly wage of $1,389.68, up from $1,342.69

To read the FWC decision paper please click here.