Pay Rise for Educators

Finance
 07 Aug 2024

In HUGE news, the Albanese government has announced that it will fund a 15% wage increase for early childhood educators, while keeping fees down for families.     

BY HEJIRA CONVERY, KINDICARE

AUGUST 8, 2024

There’s never been any doubt that early childhood educators should be fairly compensated for the incredible work they do with our children and for our society; and after a long time on low wages, our amazing educators are officially getting a pay rise! 

After setting aside money in the Budget, the Albanese government has announced that it will fund a 15% wage increase for early childhood education and care (ECEC) workers working in Child Care Subsidy-approved services. 

This announcement comes after the government joined negotiations with unions and sector representatives as part of the ECEC supported bargaining process; and the wage increase doesn’t just apply to those people educating and caring for early learners.  

We’re happy to report that workers in outside school hours care services will also get the pay rise. 

And the government says it will consult with the Family Day Care and In Home Care sectors to understand how support can be extended to their workforce. 

It's also very good to know that the government is taking steps to ensure that the cost of the wage increase won’t be passed on to families.  

The government is investing $3.6 billion to fund the pay rise, and it will be tied to a commitment from child care centres to limit fee increases. 

To be eligible to receive funding for the wage increase, ECEC services won’t be able to increase their fees by more than 4.4% over the next 12 months, from today, and this condition is carefully designed to keep downward pressure on fees for families.  

There’s also a proviso that funding must be passed on to employees in full, through increased wages, to ensure they get every cent they’re entitled to.  

And funding won't automatically go to individual Child Care Subsidy-approved services.

Instead, providers will need to apply for the funding, and it will be paid in the form of a grant.

It's expected that grant applications will open in October 2024, and educators will get two pay rises over two years, rather than one overnight.  

Specifically, ECEC workers will receive a 10% wage increase from December 2024, followed by a further 5% increase from December 2025.  

In dollar terms, the wage increase means that a typical ECEC educator who is paid at the award rate will get a pay rise of at least $103 per week at the end of this year, increasing to a rise of at least $155 per week from December 2025.  

This extra money is very welcome on both an individual and societal level.  

A larger pay packet will ease cost of living pressures for ECEC workers who’ve been labouring under low wages, while giving peace of mind to families who are paying childcare fees. 

Prime Minister, Anthony Albanese says, “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.” 

While Minister for Education, Jason Clare, says this agreement is, “The cost of living double whammy – wages up for workers and keeping prices down for families.” 

As well as putting more money in pockets, the wage increase also recognises the valuable, yet priceless, role that ECEC workers play in preparing children for school. 

Prime Minister Albanese says, "Early educators shape lives and change lives. We can never thank them enough for what they do – but we can make sure they are properly valued and fairly paid.” 

The wage increase promises greater economic equality for the women who make up at least 95% of the ECEC workforce; and giving educators the credit, and pay, they deserve is also beneficial for the ECEC sector.  

Minister for Early Childhood Education, Dr Anne Aly, says, “Properly valuing the early childhood education and care workforce is crucial to attracting and retaining workers.”  

In recent years, many ECEC workers have left the sector, or made plans to do so, and there’s no doubt that fairer pay will provide a greater incentive for them to stay. 

It will also make ECEC a much more attractive career proposition for those people who might like to launch into an education and care role.  

Again, this bodes well for families.  

Having access to well-staffed ECEC services frees parents up to work and study, which boosts productivity and workplace participation. 

And lower staff turnover is great for little learners, because they can form consistent relationships with caring educators and lay the foundations for early and future success.  

All in all, the 15% wage increase is great news for the people providing ECEC, and those using it, and it builds on the government’s ongoing commitment to ECEC reform.  

Last year, the Albanese government introduced the Cheaper Child Care initiative to make ECEC more accessible and affordable for families, and the wage increase is an important ‘next step’ in their reform of the sector.  

The 15% pay increase is definitely big news, however, what comes next may be the biggest news of all.  

The government is charting a path towards a universal ECEC system, which would ensure quality, affordable, accessible and equitable ECEC for all children. 

There’s talk of super cheap (or even free) ECEC for three days per week, and although the government is yet to share its next, next step when it comes to ECEC reform, it has the Productivity Commission’s final report on the ECEC system in hand. 

This will be released to the public ‘in due course,’ but already, we have a good sense that Australia’s children, families and educators will be looked after. 

Fingers crossed, and congratulations to every ECEC worker who’s in line for a well-deserved wage rise come December.  

Your dedication, passion and professionalism makes our society so much richer, and we are grateful for all you do.