PAY RISE FOR LOCAL EARLY EDUCATORS

08 August 2024

THE HON STEPHEN JONES MP
ASSISTANT TREASURER
MINISTER FOR FINANCIAL SERVICES
MEMBER FOR WHITLAM 

ALISON BYRNES MP
MEMBER FOR CUNNINGHAM

The Albanese Government is getting wages moving again and ensuring early educators are fairly paid by funding a 15 per cent wage increase.

This wage increase will be tied to a commitment from Child Care Centres to limit fee increases.

This significant wage increase for early childhood education and care workers is an important next step in the Government’s reforms to the sector, building on the successful Cheaper Child Care changes, which have already benefitted more than 12,000 families in the Illawarra and Southern Highlands.

This will be phased in over two years, and include a 10 per cent increase from December 2024, and a further 5 per cent increase from December 2025.

It means a typical Early Childhood Education and Care educator who is paid at the award rate will receive a pay rise of at least $103 per week, increasing to at least $155 per week from December 2025.

These workers are some of the most important workers in our region and they deserve to be paid properly.

The $3.6 billion investment from the Government recognises the vital role that these workers play preparing children for school.

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 per cent over the next 12 months from today.

This is an important condition that will keep downward pressure on fees for local families. Funding must be passed on in full to employees through increased wages.

Quality, affordable early education prepares children for a great start at school, contribution to their ongoing education and development. It also lays the foundation for the nation's future economic success.

Since coming to Government, the number of ECEC workers has grown by more than 30,000, but Australia needs more.

This commitment will help retain existing early childhood educators who are predominately women and attract new employees.

Today’s announcement comes after the Government joined negotiations with unions and sector representatives as part of the ECEC supported bargaining process, made possible by the Secure Jobs Better Pay Act.

Combined with the Government’s Cheaper Child Care initiative, today’s announcement will help support the availability of early education and care for families in the Illawarra and Southern Highlands and is a crucial step in charting the course to a truly universal early education system.

The Government has also received the Productivity Commission’s final report into early childhood education and care and will release it in due course.

Quotes attributable to Member for Whitlam, Stephen Jones:

“We’re funding a 15 per cent wage increase for early childhood education and care workers in the Illawarra and Southern Highlands, because they deserve to be fairly paid for their work.

“This wage increase in addition to our tax cuts will help ease cost of living pressures for local workers and families.

“I’m also looking forward to speaking with local early educators and families at my upcoming Dapto Family Morning about our government getting wages moving again and keeping fees down.”

Quotes attributable to Member for Cunningham, Alison Byrnes:

"Early educators do important work, and we need to make sure they’re properly paid. Today the Albanese Labor Government is doing just that.

“A typical worker in the Illawarra will receive a pay rise of at least $103 per week, increasing to at least $155 per week from December 2025.

“Importantly, we’re also keeping costs down for local families by limiting fee increases at child care centres. This is a win for workers, families and children.

“Earlier this year, we also supported our aged care workforce by supporting a further increase to award wages, building on our $11.3 billion investment last year.

“Our care economy workers are the backbone of our society, with the workforce majority being female and younger Australians. We want to make sure their wages go forward, not backwards.

“Since coming to government, we have also backed in three minimum wage increases, meaning workers on minimum wage are earning an extra $7,000 per year.