More Money for Educators
From today, childcare workers can get a 15% wage increase above award rates.
BY HEJIRA CONVERY, KINDICARE
Although it’s been a while since the Australian government first announced a two-part pay rise for our amazing early childhood workers, things have been moving in a positive direction, and today is a special day!
Why?
Well, because 1 December 2025 is the date that the second pay rise kicks in – meaning eligible workers are in line for a 5% wage increase above award, on top of the 10% increase that became available this time last year.
If you’re new to all of this, then something called a ‘worker retention payment’ is what’s funding this pay rise.
Childcare providers need to actively apply for this government funding, and from today, all providers that get the worker retention payment must pay at least 15% above award to their eligible workers.
The Children’s Services Award 2010 and the Educational Services (Teachers) Award 2020 are the awards that educators, centre directors and early childhood teachers work under, and a worker’s specific role and level determines how much the 15% increase will actually amount to.
So, for example, the UWU explains that a Cert III educator with more than two years’ experience on the award will see their weekly pay rise from $1,102 in December 2024 to $1,311. This means the educator will be $10,932 better off annually (with July’s 3.5% award wage increase factored in).
And generally speaking, the Australian government says wages are up by $200 per week for a typical full-time educator, and up $316 per week for an early childhood teacher, compared to the award rates a year ago.
You can drill down on the dollars and cents of different pay rises here (scroll to the ‘Minimum rates by award’ section); but at all levels, the wage rise is welcome and enticing.
The Australian government reports that the number of educators is up, vacancy rates are down, and staffing waivers are also down since the first wage increase.
And Minister for Education, Jason Clare says, “We know the pay rise is working to bring more people into sector and help to keep the great educators we’ve already got.”
Experienced centre director, Karen Moran, is definitely feeling positive about her wage increase.
Karen says, “As a single parent with a mortgage, the pay rise is already making a meaningful difference to my household budget – it gives extra financial breathing room with bills, and it gives me more stability.
"It acknowledges the real pressures educators face and gives me greater confidence about my future in the sector.”
It’s also important to note that from today, some childcare services that couldn’t get the worker retention payment previously – because of their fee growth – may now be eligible.
Services that increased their fees by more than 4.4% between 8 August 2024 and 7 August 2025 weren’t eligible for the worker retention payment.
However, they get a second bite at the cherry now.
Going forward, a service can be eligible for the worker retention payment if their total fee increase doesn’t exceed 8.6% over the two years from 8 August 2024 to 7 August 2026.
There are extra details here, but generally speaking, this is good news for childcare workers, because it means more services can pass on the 15% pay rise to more people.
A cap on fee growth is also good for us families, because it helps to keep childcare fees lower, and ensures that the childcare workers’ well-deserved wage increase isn’t being paid for by parents.
