A 15 per cent pay rise over the next two years for early childcare staff will ensure the workforce in the sector remains stable, the Prime Minister says.
A $3.6 billion increase from the federal government means early and after-school child care staff will get a 10 percent raise starting in December, followed by an additional five percent starting in December 2025.
Staff will only be eligible for the pay increase if child care centers agree to cap fee increases for parents at 4.4 percent.
Premier Anthony Albanese said the pay rise would ensure those working in the industry had decent wages and conditions.
“The Productivity Commission’s inquiry has shown that unless we do something about wages in the sector, we will not have a workforce,” he told ABC TV on Thursday.
“What they (childcare workers) do is create better, smarter, more capable Australians, and they deserve recognition for the hard work and commitment they put in.”
Average-wage workers will receive a $103 per week pay increase starting in December, rising to $155 more per week after the December 2025 increase.
Premier Anthony Albanese says the pay rise would ensure fair pay for early childcare workers, an important sector
Childcare workers have been campaigning for better conditions and pay for years.
However, the 15 percent increase is smaller than the 25 percent pay hike educators had been calling for before the federal budget in May.
Mr Albanese said the wage increase would have a knock-on effect on the rest of the economy.
“Child care is important to boost the economy because it increases labor force participation, and all of that will help achieve the economic goals we have,” she said.
“What this will do is give child care workers the wages they deserve.”
The federal government also confirmed that it has received the Productivity Commission’s final report on early childhood, which will be published in the coming weeks.
A preliminary report by the commission released in November recommended that the government provide universal access to childcare for up to 30 hours a week for all children up to age five.
Australian Childcare Alliance president Paul Mondo welcomed the news of the pay rise.
“We have been working for a long time towards this announcement and, although there is still much to be determined, this is a very positive step in the right direction,” he said.
“The only meaningful way to implement better wages for our workforce is through government funding to ensure that families are not left without money.”
While the Australian Education Union said the move was a good step, its Victorian branch president Meredith Peace said more funding was needed.
“Early childhood educators and teachers also expect the federal government to make additional investments in the inclusion of benefits that address workload,” she said.
‘With 11,000 more teachers and educators needed in Victoria over the next decade, professional remuneration and good working conditions are key to attracting and retaining this growing workforce.’
Jay Weatherill, director of early childhood group Thrive by Five, said the pay change was a crucial step towards ensuring universal childcare.
“Better and fairer pay will help keep educators in the sector and attract new people to the profession,” she said.
‘A well-resourced and staffed early learning sector will enable many more families to access early learning and care.’