Wage Increases Over Five Years For Certificate 3 and Diploma Qualified Educators

Over the next five years, educators across the sector will see steady, structured wage increases designed to lift pay to the new benchmark rates for each qualification level. These increases begin with a 5% rise in March 2026, followed by annual increases each 30 June, and finish with a small top‑up adjustment in the final year to ensure every educator reaches their correct new classification rate.

This staged approach gives educators a clear, predictable pathway to their new pay level and ensures that both Certificate III and Diploma‑qualified educators move confidently toward the final correct rate by 30 June 2029.

Wage Increases for Certificate III Educators (New CSE Level 3)

Certificate III educators will transition to CSE Level 3, with a final correct rate of:

$1,314.30 per week (after five years)

Their wage pathway includes:

• 5% increase on 1 March 2026
• Equal increases on 30 June 2026
• Equal increases on 30 June 2027
• Equal increases on 30 June 2028
• Final top‑up (e.g., 1.2%) on 30 June 2029

Example: Level 3.1 Cert III Educator

A Cert III educator currently at Level 3.1 will receive:

• 5% (March 2026)
• 5% (June 2026)
• 5% (June 2027)
• 5% (June 2028)
• 1.2% (June 2029)

Total increase: 21.2%

Final rate reached: $1,314.30/week

Wage Increases for Diploma Educators (New CSE Level 5)

Diploma‑qualified educators will transition to CSE Level 5, with a final correct rate of:

$1,419.40 per week (after five years)

Their wage pathway follows the same structure:

• 5% increase on 1 March 2026
• Equal increases on 30 June 2026
• Equal increases on 30 June 2027
• Equal increases on 30 June 2028
• Final top‑up on 30 June 2029

Example: Level 5.1 Diploma Educator

A diploma educator at Level 5.1 will move through the same staged increases until they reach:

Final rate: $1,419.40/week

In Simple Terms

Both Certificate III and Diploma educators will see:

• A 5% jump to start
• Three equal annual increases
• A final small adjustment to land exactly on the new benchmark rate

By 30 June 2029, every educator will be paid at the correct level for their qualification and role.

What Is The Final Correct Rate After Five Years?

These are the new minimum weekly rates each classification will reach at the end of the five‑year transition:

• These are the final award rates educators will be paid once all increases are complete.
• The five‑year increases simply move each educator from their current rate to their final correct rate.

These increases apply specifically to the minimum pay rates set out in the Children’s Services Award. Many educators are already paid above award rates through enterprise agreements, service‑based pay scales, or retention‑payment arrangements.

If you’re already earning above the award, your current rate may remain higher than the staged increases outlined here. The five‑year transition simply lifts the legal minimum safety‑net, ensuring no educator in Australia can be paid below the new benchmark rates by 30 June 2029. Services that already pay above the award can continue to do so, and your individual pay may grow differently depending on your workplace arrangements.

What Happens After The Retention Payment Ends in 2026?

The short answer is

• No—you do not automatically “drop down” to the new award rates when the Retention Payment ends.
• Yes—services can continue to pay above‑award rates, including the 15%, if they choose to.

Here’s how it works in practice:

From December 2026 onward, your employer decides what happens next:

There are three possible scenarios:

• Scenario A—Your service keeps paying the 15% uplift

Many services will choose to maintain current pay levels to retain staff and stay competitive.
This means your pay stays above the award, even after the WRP ends.

• Scenario B—Your service adjusts your pay but keeps you above the award.

Some services may reduce the uplift slightly but still keep educators above the minimum award.

• Scenario C—Your service reverts to award rates

This is legally allowed but less common because:

• it risks losing staff
• it damages service reputation
• it creates instability for families

The New Award Rates (phased in until June 2029) Are The Minimum, Not The Maximum

The increases you’ve been reading about—the 5% + annual increases + final top‑up—are:

Minimum Award Rates

• Not your guaranteed personal pay rate.
• If you’re already earning above the award (including the 15% uplift), your pay may remain higher than the new award for years.

What Most Services Are expected to do

Based on sector behaviour and workforce shortages:

• Many services will keep the 15% uplift
• Some will adjust but stay above award
• Very few will drop back to minimum award rates

Because:

• recruitment is already difficult
• turnover is expensive
• families expect stability
• educators will move to better‑paying services

In Simple Terms

When the retention payment ends:

• You do NOT automatically drop to the new award rate
• Your service can continue paying the 15%
• The new award rates are the minimum safety net
• Your actual pay depends on your service’s decision

Further Reading

Increase Pay Rates and New Classification Structure For Cert 3 and Diploma-Qualified Educators From 2026

Reference: 
Gender Undervaluation Priority Awards Review Decision