The national minimum wage and modern award minimum wages will rise by 2.5% on July 1, 2021. According to the announcement by FWC (Fair Work Commission), the increase was determined in view of the current economic performance, which has “recovered to a greater extent and more quickly than anticipated”.
The FWC took into account the impact of the pandemic and the extent of the economic recovery – which favoured a higher increase than last year.
So, what is the change?
With this increase, an educator starting out in the ECEC sector with a Certificate III in Children’s Services is expected to earn A$23.31 an hour, up from A$22.74 an hour last year. The increase is also expected to see an educator with a Diploma, starting out in ECEC, now earning A$25.26 an hour, up from A$24.64 last year. The hourly pay rate of Early Childhood Teachers, at an entry-level, is now expected to increase from A$ 27.49 to A$28.18.
For some modern awards, the increase will take effect from September 1 or November 1, 2021.
Read the Annual Wage Review 2020-21 decision here.
This blog post is intended as a general guide about the FWC announcement. Please seek specialist advice about your specific circumstances.