Navigate wage changes with confidence

Big changes are coming to educator wages and now is the time to prepare. To help you navigate what’s ahead, we’ve created a clear breakdown of the 1 July 2025 Annual Wage Review increase, the Commonwealth’s Worker Retention Payment (WRP) program, and the Fair Work Commission’s (FWC) provisional gender-based undervaluation decision for the Children’s Services Award.

In the draft decision FWC proposed a 5% gender-based uplift from 1 August 2025, but this has been delayed while the FWC consults with the sector. Further, the Commonwealth has submitted a revised timetable to the FWC, proposing the first increase from 1 January 2026.

Whether you’re a centre director, managing payroll or a provider planning budgets across multiple services, the information below will help you stay compliant and make informed decisions. 

What’s changing and when?

1 July 2025 – 3.5% Annual Award Wage Increase

• Applies to Children’s Services Award and Educational Services (Teachers) Award
• Base salary increase means that WRP will increase also.

Note: Not all classification levels have been included, but refer here for details https://www.education.gov.au/early-childhood/providers/workforce/wages/minimum-rates

Worker Retention Payment (WRP)

• The Worker Retention Payment backdating deadline has moved to 30 September 2025
• The table above is based on current pay classifications, however FWC has proposed changes to CSA. 

Gender undervaluation review (Fair Work Commission)

In April 2025, the FWC issued a provisional decision finding that wages under the CSA are undervalued and should rise by around 9-28%, depending on classification.  The Commission had initially flagged 1 August 2025 as a potential start date. This was delayed following consultation with the sector.

The Commonwealth has now proposed the following revised timetable for FWC to consider:

• +5% from 1 January 2026,
• +10% from 1 December 2026,
• +5% from 1 July 2028,
• Any final increases from 1 July 2029 (with the total increase for each classification aligned to the Commission’s provisional view). 

The Gender undervaluation only applies to Children’s Services Award. Teachers are not included.

Talent Now partners with services of all sizes to simplify staffing and support compliance especially in times of change. We’re here to help you stay informed, act strategically, and keep putting your educators and families first. Please call us today to discuss 1800 840 889.