The Federal Government will fund a 15% pay rise for early childhood educators and care workers over two years, in an effort to retain and attract staff across the industry.
Wages for these workers will increase by 10% from December this year, and a further 5% next December.
Childcare centres and preschools that want to access the funding must agree not to raise their fees by more than 4.4% over the next year. It said this was to ensure “workers can be fairly paid without the costs being passed on to families”.
Background
The Federal Government committed to increasing wages for early childhood education and care workers in the May Budget.
More than 92% of early childhood workers are women, according to the Australian Bureau of Statistics.
The national workplace regulator, the Fair Work Commission, is currently considering wage increases for gendered workforces. This will include early childhood education and care.
Women
Early Childhood Education Minister Anne Aly said the pay increase will impact a “highly feminised workforce that has for far too long been neglected and taken for granted“.
Prime Minister Anthony Albanese added the pay rise for childhood educators is an investment “in the future and [in] economic equality for women.”
The Government also said the wage increase and price cap will make childcare available to more parents, boosting women’s workforce participation.