The Albanese Government has committed to funding a 15 per cent wage increase for early childhood education and care workers over the next two years.
The wage increase will be introduced in two phases, with a 10 per cent increase in December 2024 and a further five per cent in December 2025.
The Federal government’s announcement comes following negotiations between unions and representatives from the early childhood sector under new multi-employer bargaining laws.
The increase will mean a typical early childhood educator paid at the award rate will receive a pay rise of at least $103 per week in December this year and an increase of at least $155 per week from December 2025.
The funding for the wage increase will be tied to a commitment from childcare services to limit fee increases, preventing the cost being passed onto families who are paying fees.
To be eligible for the funding, childcare services must not increase their fees by more than 4.4 percent over the next 12 months.
“Knowing your child is safe, happy and learning alongside their friends is priceless. Giving the next generation the best start in life is essential. Today we deliver fair pay for the people who make this possible,” Prime Minister Anthony Albanese said.
“Importantly, this agreement will also keep fees down for families. Our cheaper childcare policy already delivered increased subsidies to over a million families. This will provide even more cost of living relief.”
Minister for Early Childhood Education Dr Anne Aly said the funding for the wage increase was a “wonderful outcome for a highly feminised workforce that has for far too long been neglected and taken for granted”.
“Properly valuing the early childhood education and care workforce is crucial to attracting and retaining workers and vital to achieving the quality universal early learning sector Australian families deserve,” she said.
“A quality early childhood education sector is necessary to support children’s learning and development as well as workforce participation in the broader economy.”
In this year’s federal budget, the government committed to providing funding for a wage increase for childcare workers.
The Albanese government said this wage increase is a step towards creating a universal early childhood education system.
A report from the Productivity Commission on the early childhood education and care system was handed to the government at the end of June. The government says it will release the report in due course.