A Historic Shift Is Here…

But What Does It Really Mean for Early Childhood Educators?

In early 2026, the long‑anticipated gender-based undervaluation review of the Children’s Services Award reached its final stage, and its first changes take effect from 1 March 2026.

This reform is not just another wage rise. It is a structural correction. After decades of evidence showing that work in female-dominated industries, such as early childhood education and care, has been systematically undervalued, the Fair Work Commission has reshaped the Award’s classification and minimum wage framework in response to this national gender pay equity review.

What’s Actually Changing on 1 March 2026?

A simplified classification structure will see a new system with eight core levels, tying pay more closely to role value, qualifications, and responsibility.

The first phase of staged minimum wage increases comes into effect from the first full pay period after 1 March 2026, raising Award rates for many roles. Additional scheduled increases will occur each year on 30 June until the new structure and rates are fully realised by 2028–29.

This is significant on principle because it acknowledges that the sector has been underpaid due to its female-dominated workforce, which was a core finding of the undervaluation review.

What This Means for VECTEA Educators and Teachers

The upcoming changes to the Children’s Services Award are a significant step for early childhood educators. Diploma and Certificate III educators covered by VECTEA will see their pay rise to meet the new Award minimum. Because VECTEA is a superior agreement, employers cannot pay below the new minimum, meaning any underpaid educators in these classifications will automatically receive a pay increase. This ensures that the new Award functions as a floor, guaranteeing fairer remuneration for these roles.

Early Childhood Teachers and Educational Leaders are covered by VECTEA, but their minimum pay and allowances reference different benchmarks. Teacher pay is aligned with the Victorian Government Schools Agreement rather than the Children’s Services Award, so the upcoming Award changes do not automatically increase their rates. Similarly, for Educational Leaders, the Award introduces higher allowances, but Clause 42 of VECTEA expired in September 2024, so these increases do not automatically apply under the agreement. In both cases, however, the new Children’s Services Award rates and allowances provide a useful reference point that can inform ongoing VECTEA negotiations and support future recognition of teacher and leadership roles.

Implications and Implementation

While the increases for Diploma and Certificate III educators under VECTEA are guaranteed to meet the new Award minimum, the historic underpayment in the sector means that many educators will miss out on significant backpay until the enterprise agreement is fully negotiated and implemented. Employers will still need to correctly reclassify staff under the new Award structure and adjust payrolls to ensure compliance, and staged increases may occur over time, with some roles experiencing larger adjustments than others.

It is also important to note that VECTEA agreements may include provisions or entitlements beyond the Award, meaning the full impact of these changes will vary depending on service, role, and classification. Given the current bargaining environment, with the AEU having withdrawn from negotiations and signalling industrial action, there is a strong focus on securing the backpay that educators have been waiting for. This underscores the importance of ongoing advocacy, planning, and clear communication, so that educators ultimately receive the recognition and remuneration they are owed.

Why It Matters

This reform is about far more than adjusting decimal points on a pay table. For decades early childhood educators have been systematically underpaid, despite high qualifications and complex, child-centred responsibilities. The undervaluation review explicitly recognised these disparities as gender-based, not accidental, making this a critical economic and ethical correction.

While Diploma and Certificate III educators will see guaranteed pay increases under VECTEA, the reality is that many educators have missed out on significant backpay for years. Teacher-level roles and Educational Leaders, whose entitlements reference different benchmarks, do not automatically receive these increases, highlighting the continued importance of advocacy, enterprise bargaining, and industrial engagement. Recognising these inequities and acting on them is a powerful reclaiming of professional worth and a step toward long-overdue equity across the sector.

Final Takeaway

The changes coming into effect on 1 March 2026 are historic and meaningful. They begin to address decades of gender-based undervaluation in early childhood education.

For Diploma and Certificate III educators under VECTEA, the pay rise is guaranteed. Teachers and Educational Leaders under VECTEA will not automatically receive increases from the Award, but the new structure sets a reference point that can guide ongoing negotiations.

For educators and leaders alike, this moment is both a victory and a call to remain vigilant, informed, and engaged as the sector transitions into a new era of professional valuation.

Tammy Lawlor
VSKEA Founder