Labor takes first steps to give early childhood workers 15 per cent pay boost

If successful, some of Australia’s lowest paid workers could receive a 15 per cent pay bump, totalling to $155 by December 2025.

The Albanese government is gearing up to give early childhood workers a 15 per cent wage increase, with promises of wages rising by a combined $155 by December 2025.

The laws to allow the legislated pay bump will be introduced to parliament on Thursday, and if passed, will be delivered across two years with a 10 per cent boost from December 2024, followed by a 5 per cent increase from December 2025.

This means early childhood educators would record a bump of at least $103 a week from December 2024, which will increase to a minimum $155 weekly bump from December 2025.

However, in order to access the funding, childcare providers will have to be able to show they’ve not increased their fees by more than 4.4 per cent in the 12 months since August 8.

Labor has dubbed the Bill as a win for one of the lowest-paid sectors, who are predominantly women.

“Giving our kids the best start in life means giving them the best education and care,” said Prime Minister Anthony Albanese.

“We know that these early educators do an amazing job, and they deserve our thanks, but they also deserve a decent wage.”

Under the proposal, an early childhood educator would receive two increases to their salary between 2024 and 2025, totally $258. Picture: NewsWire/ John Appleyard

Early Childhood Education Minister Anne Aly said the “highly feminised workforce” had been neglected and taken for granted for “far too long”.

“Properly valuing the early childhood education and care workforce is crucial to attracting and retaining workers and vital to achieving the quality universal early learning sector Australia families deserve,” she said.

Education Minister Jason Clare said the wage increase would benefit workers, while the 4.4 per cent cap on fees would keep prices down for families.

“A pay rise for every early childhood educator is good for our workforce, good for families and good for our economy,” he said.

Early Childhood Education Minister Anne Aly said the pay rise was overdue. Picture: NewsWire/ John Appleyard

While the Coalition have yet to finalise their position on the Bill, the opposition’s spokesperson for early childhood education Angie Bell has previously lashed the policy for being a short-term “pre-election sweetener”.

“What happens in two years when the 15 per cent has been paid and the cap on restraints is lifted? It’s Australian families who will ultimately foot the bill,” she said in August.

The Opposition have also expressed concern over childcare costs rising once the fee cap ends in August 2025.

Originally published as Labor takes first steps to give early childhood workers 15 per cent pay boost