Thousands of early childhood education and care (ECEC) workers are set for a 15 per cent pay rise over two years, through a worker retention payment later this year.
Eligible workers will receive the cash boost through their workplace, but it won’t happen automatically — childcare providers and eligible workplaces must first apply for the payment through a grant agreement.
“All funds must be passed on in full to employees through increased wages,” the Albanese Government said.
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The pay rise will be phased in over two years, starting with a 10 per cent increase from December 2024, with a further 5 per cent increase from December 2025.
But it comes with a catch for workplaces — to receive the money, they must agree not to increase their fees by more than 4.4 per cent between 8 August 2024 and 7 August 2025.
Over 200,000 people make up Australia’s ECEC workforce, according to Jobs and Skills Australia
Childhood teachers, educators, cooks, coordinators, room leaders and support workers in the sector are all eligible for the wage increase.
“A typical early childhood educator who is paid at the award rate will receive a pay rise of more than $100 per week this year,” the government said.
“First regular payments will be made to eligible providers in January 2025.”
That will increase to $150 per week from December 2025.
But the cash bonus doesn’t just offer financial relief for workers.
The fee increase caveat keeps a “downward pressure on out-of-pocket costs for families”.
Federal Education Minister Jason Clare said it signalled the end of “the childcare debate.”
“It’s not babysitting. It’s early education, and it’s critical to preparing children for school. They lift our kids up and now we are lifting their pay.
“This means wages up for workers and keeping prices down for families.
“A pay rise for every early childhood educator is good for our workforce, good for families and good for our economy.”
Who is eligible for the wage increase?
Workers will need to be employed by a childcare subsidy-approved centre based day care and outside school hours care service that opts in to the payment delivered via the Child Care Subsidy System, to be eligible for the payment
They must also be covered by either the Children’s Services Award 2010 or the Educational Services (Teachers) Award 2020, or do similar duties covered by those awards a different award or instrument, like a state industrial instrument.
Family daycare (FDC) and in-home care (IHC) providers are not currently eligible.
The government is working closely with the FDC and IHC sectors to learn how best to support their workforce,” the government said.
The scheme will close on November 30, 2026.
Early Childhood Education Anne Aly said: “I urge all eligible early learning services to sign up to this important initiative, so their hardworking staff get the full benefit of this wage increase.”
Providers who apply by June 30, 2025 can receive a payment backdated to December 2, 2024.
This will allow them the time needed to meet any conditions of the grant agreement required for eligibility.
More information about the worker retention payment is available on the Department of Education website.