Parliament Approves Pay Rise

Financial Wellbeing
 27 Nov 2024

Some early childhood educators can look forward to a 15% pay rise over two years, with the passing of the Wage Justice for Early Childhood Education and Care legislation.     

BY HEJIRA CONVERY, KINDICARE

NOVEMBER 27, 2024

There’s been a lot of talk about the 15% wage increase for early childhood education and care (ECEC) workers, and the passing of legislation last night ensures that the two-part pay rise can start to take effect from this weekend onwards. 

The Federal government has passed legislation to ensure eligible ECEC workers will get a 10% pay rise from this December, followed by a further 5% wage increase from December 2025.   

This worker retention payment will be paid direct to ECEC providers as a grant, to be passed on to their workers. 

To get the funding, each provider must actively apply for the payment, meet the eligibility criteria, and comply with certain conditions – including a pledge not to increase fees above 4.4% (between 8 August 2024 and 7 August 2025) and 4.2% (between 8 August 2025 and 7 August 2026). 

The worker retention payment is calculated on the current national award rates, and the Minister for Early Childhood Education, Anne Aly says, “This historic 15 per cent pay rise means that early childhood educators will get another hundred bucks in their pockets in time for Christmas and then 150 next year.  

“It means that they’ll stay in the job that they love, and it means that they’ll go to the job and get more into the job that they love.” 

Workforce retention is definitely a key aim when it comes to the 15% pay rise, and better pay is also intended to attract more people to the sector.  

It appears the wage increase is already having a positive effect in this regard, with the Minister for Education, Jason Clare, explaining that Goodstart Early Learning, “Have told us that in the week after they signed up to [the wage rise] agreement, they’ve seen an eight per cent increase in the number of job applications.”  

Earlier this month, 16,000 early childhood educators from Goodstart signed up to receive the pay rise, and they are not the only provider getting behind greater wages.  

The United Workers Union National President, Jo Schofield says. “Already 64 employers covering more than 12,000 educators have signed on to get the 15 per cent pay rise. And we have seen more than 100 employers ready to sign on.” 

The Union is a key participant in the multi-employer bargaining process that’s been underway since September 2023, and Ms Schofield says, “Through this legislation and the multi-employer agreement struck between employers, the Albanese Labor Government and unions, there are no roadblocks stopping early childhood centres signing up once the deal is registered.” 

To learn more about the worker retention payment, click through to the Department of Education Early Childhood Wages page, and we hope the pay rise has a positive effect on your budget and career aspirations.