15 per cent pay rise for early educators locked in as new legislation passes parliament

The Australian Parliament has passed legislation extending funding for the 15 per cent wage increase for eligible early childhood education and care workers while introducing stronger safety conditions for participating services.

The Wage Justice for Early Childhood Education and Care Workers (Special Account) (Extending Support and Strengthening Safety) Bill 2026 provides an additional $3.6 billion to support the wage increase.

The legislation also places into law a requirement for early childhood education and care (ECEC) services to meet national safety standards as a condition of receiving the funding.

More than 80 per cent of eligible services are currently receiving the payment, according to the Australian Government.

The 15 per cent wage increase was introduced in two stages, beginning with a 10 per cent increase in December 2024 and followed by a further five per cent in December 2025.

Combined with increases to minimum wages, the Government said the changes mean a typical full-time educator is now earning approximately $255 more each week, while early childhood teachers are receiving approximately $410 more per week.

The Government has linked the payment to signs of improvement across the ECEC workforce, reporting that:

• the number of early educators has increased by approximately 20,000 since the wage increase was announced
• job vacancies have declined by more than 31 per cent
• the use of agency staff at Goodstart Early Learning decreased by 69 per cent during the first year of the program.

Minister for Education Jason Clare said the payment had helped attract more people to the sector while recognising the importance of educators’ work.

“Caring for and teaching children is some of the most important work in the country,” Minister Clare said.

“Our early educators deserve every cent they get.”

Minister for Early Childhood Education Senator Dr Jess Walsh said educators had described the payment as helping them remain in the profession.

“They tell me it’s helping them stay in the jobs they love,” Minister Walsh said.

“It’s providing more certainty and stability for the children in their care.”

The legislation strengthens the connection between public funding, service quality and children’s safety.

From July 2027, funding may be reduced or suspended where a participating service does not meet the National Quality Standard requirements relating to safety.

The Government said 95 per cent of early learning services currently meet the relevant safety standard, the highest proportion recorded to date.

Minister Clare said the new requirement would help ensure that services receiving funding to support educator wages were also meeting national expectations for children’s safety and quality.

“Nothing is more important than the safety of our children,” he said.

“This will help to make sure safety and quality in early education is what parents expect and what our children deserve.”

The measure builds on broader national reforms intended to strengthen safety, quality and accountability across ECEC services.

For providers, the change creates a clear need to understand how their quality rating and compliance position may affect their future eligibility for the funding.

Services with identified safety-related areas for improvement will need to ensure actions are clearly documented, implemented and monitored ahead of the July 2027 commencement date.

Services receiving the payment will continue to be required to limit fee increases, helping ensure the cost of higher wages is not passed directly on to families.

According to the Government, fees at participating services have increased at approximately half the rate recorded by services not receiving the payment.

The Government estimates that the fee restrictions will save the average family approximately $1,500 over the next two years.

Minister for Employment and Workplace Relations Amanda Rishworth said the wage support had made a tangible difference for educators whose work had historically been undervalued.

“Early childhood educators use their skills to perform a vital role at a critical time in a young person’s development and their tireless efforts should be properly valued,” Minister Rishworth said.

The passage of the legislation provides participating providers with greater certainty about the continuation of Commonwealth support for the wage increase.

It also reinforces the Government’s expectation that workforce investment, affordability, safety and service quality must operate together.

Providers receiving the payment will need to continue ensuring that they:

• pass the applicable wage increase on to eligible employees
• comply with the fee growth restrictions
• maintain accurate employment, payroll and funding records
• monitor each service’s performance against the National Quality Standard
• act promptly on safety and compliance concerns
• maintain governance oversight of improvement actions.

The legislation represents a significant continuation of Commonwealth investment in the ECEC workforce. It also establishes a stronger accountability framework by linking that investment directly to service safety and affordability.

For educators, the funding offers continued recognition of the skilled and essential work they perform. For providers, the next phase will involve maintaining compliance with the funding conditions and preparing for the strengthened safety requirements commencing in July 2027.

Access the Australian Government announcement here.