On July 1, Fair Work mandated a 5.75% increase to pay rates for all workers on modern awards. This large increase applies across the board, and is the result of continuous, decades-high inflation. Fair Work’s decision adjusts wages to make up for some of the purchasing power lost from inflation.
Tanda’s compliance team researches a library of these pay rates and automatically update them in Managed Award Templates when they switch over each year on July 1. Tanda’s automatic award interpreter takes an employee’s timesheet, applies award rules, and calculates the employee’s pay correctly.
Businesses needed to pay the full rate in the first full pay run on or after July 1. This included the Children’s Services Award. However, Fair Work has issued an update to these pay rates, after it failed to update a new rate that had come into effect. The last-minute change hasn’t been widely publicised across the industry, and many Childcare and Early Learning providers might not be aware of the correction.
The Education Leaders Allowance day rate has changed from $15.42 to $16.31. If you’re on Tanda’s Managed Award Template, this rate has been automatically updated for you. If you’re with another software provider or manage your rates manually, it’s a good idea to check if your rate is correct and reflects Fair Work’s latest update.