Childcare Wage Rise

Finance
 13 May 2024

We're happy to report that the Federal Government will fund a significant pay rise for early childhood educators as part of its 2024-2025 Budget.     

BY HEJIRA CONVERY, KINDICARE

MAY 13, 2024

The news we’ve been waiting for has arrived, with the Australian Government confirming that big money has been set aside in the 2024-2025 Federal Budget to fund a wage rise for childcare workers.  

Treasurer Jim Chalmers will hand down the Budget tomorrow night, on 14 May, but he has already confirmed that it includes a multi-billion dollar provision towards wage increases for early childhood educators and those in the aged care sector.  

This is excellent news for educators, childcare providers, families and our whole society, because a solid pay rise will make early childhood education and care (ECEC) a much more attractive career proposition, and help to keep great educators in the sector, supporting our children in their formative years and enabling us parents to work and study.  

We thank the Federal Government for investing in our amazing childcare people, and give an extra special thanks to the groups who’ve been working hard to negotiate a significant pay rise for early childhood educators.  

As KindiCare reported in June and September last year, the United Workers Union, Australian Education Union and Independent Education Union, and their joint representatives – the Australian Childcare Alliance, Community Early Learning Australia, Community Child Care Association and leading childcare provider, G8 Education have been negotiating a substantial wage rise for early childhood educators, and it’s great to see their efforts haven’t gone unnoticed.  

Michele Carnegie, CEO of Community Early Learning Australia says, ”It's clear that we’ve been heard. This announcement shows the Federal Government recognises the value of early educators and teachers to Australia’s families and communities. 

“The new multi-employer agreement will unlock access to early education for families by reducing critical staff shortages. Small and community services will be able to open new places because they can attract and keep qualified staff by offering professional wages.” 

Carolyn Smith, Early Education Director of the United Workers Union is also heartened by the budgetary news. 

She says, “The Federal Labor Government commitment to fund a significant wage rise for early childhood educators is welcome, and desperately needed to address the continuing workforce crisis in the sector.” 

Ms Smith adds, “Early educators have been negotiating for a real wage rise since last year in Australia’s first supported multi-employer agreement. 

“The wage rise commitment from the Federal Government comes as early educators continue to pursue their claim for a 25% wage rise in the bargaining,” and says, “Whatever way it happens, a wage rise needs to happen soon.” 

All will be revealed when the 2024-2025 Budget is handed down.

We’re looking forward to seeing what dollars have actually been allocated and how the wage increase will happen, and even before we know the detail, a multi-billion dollar commitment to early childhood educators’ wages is already worth celebrating!  

Read the full budget wrap.