On 3 June 2025, the Fair Work Commission (FWC) determined the Annual Wage Review 2024-2025, providing for a 3.5% increase to the minimum pay rates and wage-related allowances in modern awards. The increase is applicable from the first full pay period on or after 1 July 2025.  

What does this mean?

For schools that have employees covered by modern awards (and who are not covered by an enterprise agreement or a multi-enterprise agreement (MEA), the minimum pay will increase by 3.5% from the first full pay period on or after 1 July 2025. Weekly rates are rounded to the nearest 10 cents.

Impact on MEA employees

The Workplace Management Team will analyse which classifications and allowances, particularly within the Independent Schools Teachers and Professional and Operational Staff Cooperative MEAs, as well as the Christian Schools NSW (Support and Operational Staff) MEA 2023, will be impacted. 

Prior to 1 July, we will inform schools of any necessary salary adjustments to ensure compliance and avoid an underpayment claim. This information will be made available on the AISNSW website.

If you are paying above the MEA rates for your employees, you are encouraged to review the new rates (once they are made available) to ensure you continue to meet or exceed the minimum rates of pay that will be effective from 1 July 2025, to avoid an underpayment claim.

Impact on Modern Award employees

For schools with employees covered by the Modern Award, the minimum pay will increase from 1 July 2025, depending on their current weekly rate. The Fair Work Commission will shortly publish the official rates that will be effective from 1 July 2025, for the:

  • Educational Services (Schools) General Staff Award 2020; and
  • Educational Services (Teachers) Award 2020.

Modern awards provide only minimum entitlements for employees. Subject to individual contracts, the 3.5% increase may be offset or absorbed by the above award rate that the school is currently paying. Employees who are covered by a modern award must be paid at least the pay and allowance rates in the modern award to avoid an underpayment claim.

If a School has a contractual obligation to an employee to pay him or her a set amount above the modern award rate, then the pay rate for that employee would need to be increased.

Questions

Should you have any questions or require assistance in determining if the above decision will impact any individual Enterprise Agreements or other MEAs, please contact the Workplace Management Team on 02 9299 2845.