The Fair Work Commission’s 2023 annual wage review has been completed with the expert panel determining a 5.75 per cent increase in all Modern Award Wages, including those used in the early childhood education and care sector (ECEC).

This year’s decision outcome was primarily driven by cost of living related factors, due to ongoing price rises caused by inflationary pressures, but also efforts to address long standing gender pay gap issues in female dominated sectors such as ECEC.

“We have also taken into account the recent robustness of the labour market, and the fact that increases to modern award minimum wage rates will provide a disproportionate benefit to female workers and may contribute to narrowing the aggregate gender pay gap across the entire employee workforce,” the Commission noted.

Moderating factors to increase wages more than 5.75 per cent included the upcoming increase in Superannuation Guarantee contributions rate and the need to avoid entrenching high inflation expectations.

“The level of wage increase we have determined is, we consider, the most that can reasonably be justified in the current economic circumstances,” the Commission concluded.

5.75 per cent starts on 1 July 2023, builds on last years step change increase

At 5.75 per cent, the increase in Modern Award wages this year is a step higher than last year, which itself was materially higher than previous years.

The increases will come into effect on 1 July 2023 with those team members on the ...

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