Early Childhood Education Workers to Receive 15% Pay Rise – if Centres Limit Fee Increases
Source:https://www.theguardian.com/
The Albanese government has announced a 15% pay increase for early childhood education workers, aimed at addressing wage inequities in the sector. The raise will be implemented in two stages: a 10% increase starting in December this year and an additional 5% in December 2025. However, this wage boost is contingent on child care centers agreeing to limit their fee increases.
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The 15% pay increase for early childhood education workers will provide an extra $103 per week by the end of this year, rising to $155 per week by December 2025 for those on the award rate. This funding also extends to centers offering outside school hour care, aiming to increase availability for working parents. To qualify for the $3.6 billion funding package, childcare centers must limit fee increases to no more than 4.4% over the next year and ensure the full funding is used for staff pay raises.
To address staffing issues exacerbated by a 23% average pay increase for aged care workers, the government is encouraging childcare centers to accept conditions that include a 4.4% fee increase cap to retain staff. This cap, based on inflation and the wage price index, is intended to prevent additional fee hikes. The funding, provided over two years, aims to support the Fair Work Commission’s review of gender undervaluation in the care and health sectors.
The government is addressing concerns about childcare fee increases that offset subsidy payments by requiring centers to cap fee hikes to qualify for staff pay funding. This aims to protect parents and caregivers from further cost increases. The Productivity Commission’s final report on early childhood education and care fees has been submitted, but no response date has been set.
Prime Minister Anthony Albanese praised the government’s move to boost early childhood education workers’ pay, calling it a significant step for childcare. Treasurer Jim Chalmers noted that the pay increase would enhance access to affordable care and improve productivity.
Education Minister Jason Clare and Early Childhood Education Minister Anne Aly highlighted the dual benefit of the policy: raising wages while keeping fees low, which is essential for retaining quality staff and supporting children’s development.
Advocates welcomed the pay raise but continue to urge the removal of the activity test that limits subsidized care for children of parents working fewer than 15 hours a week, affecting around 126,000 children from low-income families.
Image Source:https://www.theguardian.com/
