Child care workers will finally receive a significant 15 percent pay increase after the federal government agreed to foot the bill, but it falls short of what unions wanted.
The key pay rise for one of the lowest-paid sectors facing staff shortages will be phased in over two years, starting with a 10 per cent increase from December.
An additional 5 percent increase will apply from December 2025.
The government will fund the pay increase and cap fee increases childcare centres can impose to ensure new costs are not passed on to families.
The government’s $3.6 billion investment “recognizes the vital role workers play in preparing children for school.”
The Prime Minister will announce the decision in Sydney on Thursday, saying early childhood educators “shape and change lives”.
“We can never thank them enough for what they do, but we can make sure they are properly valued and paid fairly. Today our government is doing just that,” Albanese will say.
“It is essential to offer the next generation the best start in life. Today we offer a fair wage to the people who make this possible.”
Premier Anthony Albanese says the pay rise would ensure a fair wage for childcare workers in an important sector. He is pictured at a Brisbane childcare centre last month.
A typical early childhood educator receiving a salary based on the award will receive a pay increase of at least $103 per week, rising to at least $155 per week from December 2025.
ECEC workers are some of the most important workers in the country and deserve to be paid properly.
But the announcement is unlikely to satisfy the unions.
In March, United Workers Union early learning director Carolyn Smith called on the federal government to fund a 25 percent pay raise for child care staff, at an estimated cost of $2.3 billion a year.
Ms Smith said at the time low wages were forcing childcare staff to leave for better-paid jobs, leaving many childcare centres understaffed and having to turn away children.
Childcare workers have been campaigning for better conditions and pay for years.