The Fair Work Commission (the Commission) foreshadows major changes to the pay and classification structures in the Children’s Services Award 2010 (CS Award), setting out its findings and provisional views about what should be done (and when) in the decision handed down on Wednesday 16 April 2025.
Key findings of the Commission
The Commission has determined:
- Minimum award wage increases for children’s services employees (CSEs) covered by the CS Award are necessary after finding work value reasons exist; specifically, that CSEs have been subject to “gender-based undervaluation”.
- The “benchmark” set in the Aged Care Work Value proceedings for Certificate III qualified Personal Care Workers/Home Care Workers is to apply to Certificate III qualified CSEs. That benchmark is $1,269.80 (after taking into account the Annual Wage Review 2023-24 Decision), an increase of 23%. This follows a finding that CSEs perform work that is of “equal or comparable value” to direct care employees in the aged care sector.
- No change is to be made to the minimum award wages of support workers covered by the CS Award (such as cooks, cleaners or gardeners working in children’s services). In making that conclusion, the Commission noted it only had evidence with respect to the work performed by “cooks” and no other support worker.
Those findings will not be altered by any subsequent conference process with the interested parties.
Proposed changes to CSEs: Increased rates and new classification structure
The Commission proposes that the existing minimum rates and classification structure should be removed and replaced with “a new, simplified classification structure” that is substantially based on the qualifications framework for the ECEC sector.
What does the new structure look like for CSEs?
The new classification is set out below:
| Classification |
Criteria |
Relativity to Level 3 |
$ per week |
| CSE Level 1 Introductory Educator |
An employee whose primary role is to work directly with children and who has less than 12 months’ experience as a CSE. |
90% |
1,142.80 |
| CSE Level 2 Educator |
An employee whose primary role is to work directly with children and who has at least 12 months’ experience as a CSE. |
95% |
1,206.30 |
| CSE Level 3 Qualified Educator |
An employee whose primary role is to work directly with children and has obtained an approved Certificate III-level early childhood education and care qualification |
100% |
1,269.80 |
| CSE Level 4 Experienced Educator |
An employee whose primary role is to work directly with children, who has obtained an approved Certificate III-level early childhood education and care qualification and has obtained four years’ post-qualification industry experience at CSE Level 3. |
104% |
1,320.60 |
| CSE Level 5 Advanced Educator |
An employee whose primary role is to work directly with children and who has completed a diploma-level early childhood education and care qualification or an equivalent approved qualification for out of school hours care. |
108% |
1,371.40 |
| CSE Level 6 Lead Educator/ Room Leader |
An employee who has been appointed as a Lead Educator or Room Leader in accordance with relevant legislation or regulation. |
112% |
1,422.20 |
| CSE Level 7 Assistant Director |
An employee who is appointed as:
- the Assistant Director of a service;
- Children’s Services Coordinator;
- Family Day Care Co-ordinator;
- Family Day Care Trainee Supervisor; or
- School Age Care Co-ordinator and who has completed an AQF Level 5 or Level 6 Diploma in Children’s Services or equivalent or is deemed by the employer or relevant legislation to hold such qualification or possess such experience as appropriate or required for the position.
|
122% |
1,546.70 |
| CSE Level 8 Director |
An employee who is appointed as the Director of a Service and has completed a relevant degree or other qualification or is deemed by the employer or relevant legislation to hold such qualification or possess such experience as appropriate or required for the position. |
142% |
1,803.20 |
Arising from the proposals for CSE Levels 7 and 8, the Commission has also proposed to abolish the qualification allowance at clause 15.6 of the CS Award.
What is the % increase for existing CSEs?
Turning to how the existing classifications will translate into the new structure, together with reference to the resulting increases, it is proposed to operate as follows:
| Current classification |
New classification |
Increase (%) |
| Level 1.1 |
CSE Level 1 |
24.8 |
| Level 2.1 |
CSE Level 2 |
27.8 |
| Level 2.2 |
CSE Level 2 |
23.7 |
| Level 3.1 |
CSE Level 3 |
23 |
| Level 3.2 |
CSE Level 3 |
18.9 |
| Level 3.3 |
CSE Level 3 |
15.3 |
| Level 3.3 (with 4+ years' experience at Level 3) |
CSE Level 4 |
19.9 |
| Level 3.4 |
CSE Level 5 |
18.0 |
| Level 4.1 |
CSE Level 6 |
17.0 |
| Level 4.2 |
CSE Level 6 |
15.2 |
| Level 4.3 |
CSE Level 6 |
13.5 |
| Level 5A.1 |
CSE Level 7 |
21.6 |
| Level 5A.2 |
CSE Level 7 |
19.9 |
| Level 5A.3 |
CSE Level 7 |
18.2 |
| Level 5.1 |
CSE Level 7 |
21.6 |
| Level 5.2 |
CSE Level 7 |
19.9 |
| Level 5.3 |
CSE Level 7 |
18.2 |
| Level 5.4 |
CSE Level 7 |
17.8 |
| Level 6A.1 |
CSE Level 8 |
23.0 |
| Level 6A.2 |
CSE Level 8 |
21.5 |
| Level 6A.3 |
CSE Level 8 |
20.0 |
| Level 6.1 |
CSE Level 8 |
23.0 |
| Level 6.2 |
CSE Level 8 |
21.5 |
| Level 6.3 |
CSE Level 8 |
20.0 |
| Level 6.4 |
CSE Level 8 |
15.7 |
| Level 6.5 |
CSE Level 8 |
14.6 |
| Level 6.6 |
CSE Level 8 |
13.3 |
| Level 6.7 |
CSE Level 8 |
11.9 |
| Level 6.8 |
CSE Level 8 |
10.7 |
| Level 6.9 |
CSE Level 8 |
9.4 |
Additional variation proposed: Cooks required to hold ECEC Certificate III qualification
The Commission also set out a view that the CS Award should be varied so that cooks –
- “who are required to hold an ECEC Certificate III qualification, or to be actively working towards that qualification”, and
- “who may be required to work ‘on the floor’ at any time to maintain the ratio of educators to children”,
should be paid the rate for CSEs holding that qualification for all hours worked.
Consideration of the capacity for the ECEC sector to absorb the increase
The Commission has acknowledged that the proposed changes if implemented will have significant cost implications for employers in the ECEC sector.
In setting out a proposed timetable for operative date and phasing in, the Commission has had regard to the capacity for the ECEC sector to absorb increases in award wage rates.
Two matters were highlighted:
- Providers in receipt of ECEC Worker Retention Payment Grant funding have already guaranteed their workers a total wage increase of 15 per cent above the current award wage rates by 1 December 2025. However, the terms of the Grant permit providers to use that funding to offset any award wage increases arising out of these proceedings. This will reduce the financial impact on providers in receipt of Grant funding for the duration of the Grant program.
- Independent of the Retention Payment scheme, “a significant minority of employers… already pay above-award wages”. Again, whether that practice is achieved through enterprise agreements or individualised arrangements, it may be used to absorb some or all of the proposed increases (subject to the specific circumstances of the employer).
Taking those matters into account, the Commission has proposed the following implementation plan:
- The wage rates should be phased in over a period of 5 years in annual increments; and
- There should be an initial increase to the award wage rates for CSEs of 5% from 1 August 2025.
What if I am concerned by the proposed changes?
It is important to emphasise that the proposed changes set out above represent the “provisional views" of the Commission. Prior to any determinations being issued, the interested parties that appeared in the proceedings will have the opportunity to make submissions. This provides some scope to advocate for adjustments and alternative approaches.
Australian Business Lawyers & Advisors (ABLA) will be participating in the next stage of the proceeding on behalf of Australian Childcare Alliance, Business NSW and Australian Business Industrial.
Should any ABLA clients or members of the identified employer associations wish to provide any feedback regarding the provisional views of the Commission, please feel free to contact us at info@ablawyers.com.au or 1300 565 846.
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