On 3 June 2024, the Fair Work Commission determined the Annual Wage Review 2023-2024 providing for a 3.75% 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 2024.

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), it means that the minimum pay will increase from the first full pay period on or after 1 July 2024 by 3.75%. Weekly rates are rounded to the nearest 10 cents.

Impact on the Multi-Enterprise Agreements and other Enterprise Agreements

The Workplace Management Team will conduct a thorough analysis of all adult classifications in our Multi-Enterprise Agreements and will compare these rates to those that will shortly be published by the Fair Work Commission.  Prior to 1 July, we will then inform Schools of which classifications will require a salary adjustment, to ensure that the minimum rates are being met, to and avoid an underpayment claim. This information will be made available through our 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 2024, to avoid an underpayment claim.

Impact on Modern Award employees

For schools that engage employees covered by the Modern Award, it means that the minimum pay will increase from 1 July 2024, depending on their current weekly rate. As noted above, these rates will shortly be published by the Fair Work Commission.

Modern awards provide only minimum entitlements for employees. Subject to individual contracts, the 3.75% 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.

What are the new minimum rates of pay under the Award and MEA?

The Fair Work Commission will shortly publish the official rates that will be effective from 1 July 2024, for the:

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

In the meantime, the Workplace Management Team will be undertaking our own analysis to determine which classifications, particularly within the Support and Operational Staff MEA’s will be impacted.  Once this analysis is complete, we will inform Schools, and publish the new minimum rates on our website. Should you have any questions or require assistance in determining if the above decision will impact any individual Enterprise Agreements, or other Multi-Enterprise Agreements, please contact the Workplace Management Team on 02 9299 2845.