Responses from across the ECEC sector as wage rise clarifications continue 

Peak bodies, advocacy groups, unions and other representatives from across the early childhood education and care (ECEC) sector have responded to yesterday’s announcement by Prime Minister Anthony Albanese that the Government will fund a 15 per cent wage increase for ECEC workers. 

The wage increase will be tied to a commitment from approved providers to limit fee increases to ensure that workers will be paid fairly without costs being passed on to families.

 

A recap of the major points of the wage increase

 

The Department of Education will issue the funding, known as a Worker Retention Payment, in two parts to support a wage increase of: 

 

• 10 per cent on top of the current national award rate in the first year
• 15 per cent above the current national award rate in the second year.

 

The payment will start in December 2024 and run for two years. The payment is on top of the 3.75 per cent increase to award wages that started on 1 July 2024 following the 2024–25 annual wage review.

 

Approved providers will need to apply for the payment, which will be paid in the form of a grant. Grant applications are expected to open in October 2024, and will be conditional on providers agreeing to: 

 

• limit fee growth to no more than 4.4 per cent over the next 12 months
• engage staff through a workplace instrument that meets grant conditions
• pass on all funding to eligible workers through increased wages.

 

A typical ECEC educator who is paid at the award rate will receive a pay rise of at least $103 per week as a result of the changes, increasing to at least $155 per week from December 2025.

 

The investment by the Government to initiate these increases is $3.6 billion.

 

The wage increase applies to early childhood and outside school hours care, with the Department of Education noting that it will “consult with the Family Day Care and In Home Care sectors to understand how support can be extended to their workforce.”

 

“The child care debate is over,” Minister for Education Jason Clare said. 

 

“It’s not babysitting. It’s early education and it’s critical to preparing children for school.”Dr Anne Aly, Minister for Early Childhood Education, welcomed the news saying “this is a wonderful outcome for a highly feminised workforce that has for far too long been neglected and taken for granted.”

 

Life changing announcement 

 

Perhaps the strongest praise for yesterday’s announcement came from Community Child Care Association Executive Director Julie Price, who said “this is a life changing announcement for our dedicated early childhood educators and teachers. This will mean staff will no longer have to choose between staying in the job they love and being able to pay their bills.”

 

The ECEC sector, she continued, “simply cannot afford to lose any more qualified staff. We are pleased the Federal Government has recognised this urgency by making this commitment now, instead of waiting for further lengthy Award processes.”

 

For Community Early Learning Australia CEO Michele Carnegie, sentiments were similar. 

 

“We expect this announcement will entice many qualified staff back into the sector,” she said. 

 

“Families will see more places available and children will benefit from greater consistency of care. We look forward to finalising the new multi-employer agreement so small and community providers can attract the qualified staff they need.”

 

A sense of optimism

 

For The Front Project CEO Dr Caroline Croser-Barlow, the announcement was one which offered a sense of optimism. 

 

Dr Croser-Barlow offered her congratulations to the unions and providers who have been involved in multi-employer negotiations, and the educators who have long advocated for this outcome.  

 

“These changes represent a significant shift in policy, signaling the government’s willingness to embrace system stewardship to ensure that the ECEC system works for everyone,” she said.

 

“We look forward to continuing to work with the government towards alleviating barriers to accessing early learning and striding towards a universal ECEC system in Australia.”

 

IEU welcomes teacher recognition 

 

The New South Wales/ACT branch of the Independent Education Union (IEU) welcomed the announcement noting that for an experienced early childhood teacher working in a long day care (LDC) setting the wage rise will mean a move into a six figure salary. 

 

Under the Modern Award, an experienced teacher in a LDC centre is currently paid $93,000 a year. The new top rate (after the 15 per cent increase) will be over $107,000. 

 

"Today we're seeing the historic outcome of unions, the federal government and a group of 64 employers working together to lift pay and conditions across the long day care sector," Branch Secretary Carol Matthews said.

 

"The education and care of our youngest children is important and indispensable work. These long overdue increases better reflect the valuable work of early childhood teachers in laying the vital foundations for our children's development and lifelong learning."

 

Ms Matthews hopes the wage increases will help ease critical teacher shortages in LDC centres across the country, stemming the tide of teachers leaving for better pay and conditions in the schools sector. 

 

"This is a big shift but work still needs to be done," she said. "The gap in pay and conditions between teachers in the early childhood sector and those in schools is still too big. Teachers are teachers no matter the age of their students, and we will keep fighting until there is equity between teachers in the early childhood education and care sector and those in schools."

 

A cause for celebration - Goodstart 

 

Goodstart Early Learning - Australia’s largest not for profit ECEC provider - termed the announcement ‘a cause for celebration’ - one which recognises the value of the work done by educators in the sector. 

 

“With this $3.6B commitment the Prime Minister has demonstrated he is serious about delivering a truly universal early education system for all of Australia’s children and families – because the first thing a universal system needs is a strong workforce,” CEO Dr Ros Baxter said.

 

“We expect that today’s announcement will see qualified early learning educators return to our sector, while encouraging others to establish a career in early learning. This in turn will help make more quality child-care places available for families who need it.”

 

More is needed

 

While the Australian Education Union Victorian Branch has welcomed the Federal Government’s wages offer for early childhood teachers and educators in the national multi-employer agreement, more needs to be done, Meredith Peace, AEU Victorian Branch President said.

 

"Investment to address unsustainable workloads and other conditions also needed to be brought to the table,” she continued. “Early childhood teachers and educators are also looking to the Federal Government for additional investment for the inclusion of entitlements that address workload.” 

 

“All the research shows that high quality, play-based learning in the early years can help set children up for life, but without early childhood teachers and educators, there is no early childhood education and care.”

 

This sentiment was echoed by Australian Greens Early Childhood Education and Care spokesperson Senator Steph Hodgins-May who said the increase “doesn’t go far enough.”

 

"Pay increases for staff are crucial but they should come with universal free childcare,” the Senator said.

 

"Labor must commit to union calls for a 25 percent wage increase. This is a workforce in crisis. For too long, educators have been underpaid and as a result are leaving the industry (sic.) in droves.”

 

Proof that Early Learning Matters 

 

Early Childhood Australia (ECA) CEO Samantha Page noted the timing of the news, which was announced during Early Learning Matters Week, as being symbolic of the importance of early learning, and of the Government’s commitment to it. 

 

“This is a well overdue pay increase,” she said, “and I am thrilled that the Government has acknowledged the professionalism of our educators during Early Learning Matters Week, where so many politicians have been out seeing first-hand the great work the early childhood sector does.”

 

Commenting on the requirement for services to not raise fees above 4.4 per cent Ms Page said ECA supports this approach, which she believes considers both the needs of the workforce and the families they serve. 

 

“Placing conditions on fee increases offers solid protection for families and I think it is wise for the government to ensure that this investment lands in the hands of those who deserve it – the educators.”

 

Hopeful for an end to chronic shortages

 

The Early Learning and Care Council of Australia (ELACCA), along with many of the other respondents, hope that the wage rise will alleviate some of the pressure that the ECEC workforce has been under both before, and definitely since, the pandemic. 

 

ELACCA CEO Elizabeth Death noted that the early childhood workforce “has been the mainstay of our economy, continuing to educate and care for our nation’s youngest, while dealing with burn-out off the back of the pandemic, and in response to critical and ongoing workforce shortages.” “Our workforce has faced chronic shortages across the country,” she said. 

 

“A well-deserved lift in wages, together with a recruitment campaign, clear career pathways and professional recognition, will help the early learning and care system to continue to expand and enable more children to thrive and parents and carers to work.”

 

For a summary of the main points of yesterday's announcement please see here.