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Albo’s major pay bump for key workers

Written by on August 7, 2024

Childcare workers will finally receive a significant 15 per cent wage increase after the federal government agreed to foot the bill, but it falls short of what unions wanted.

The key increase for one of the lowest paid sectors facing staff shortages will be phased in over two years, starting with a 10 per cent increase from December this year.

A further 5 per cent increase will be in place from December 2025.

The government will fund the pay increase, and limit the fee increases childcare centres can impose to ensure the new costs won’t be passed on to families.

The government’s $3.6bn investment “recognises the vital role that ECEC workers play preparing children for school.

The Prime Minister will announce the decision in Sydney on Thursday, saying early educators “shape lives and change lives.”

“We can never thank them enough for what they do – but we can make sure they are properly valued and fairly paid. Today our government is doing just that,” Anthony Albanese said.

“Giving the next generation the best start in life is essential. Today we deliver fair pay for the people who make this possible.”

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

ECEC workers are some of the most important workers in the country and they deserve to be paid properly.

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But the announcement is unlikely to satisfy unions.

In March, United Workers Union early learning director Carolyn Smith called for the federal government to fund a full 25 per cent pay rise for childcare staff, costing an estimated $2.3bn a year.

Ms Smith said at the time low wages were forcing childcare staff to leave for better-paying jobs, leaving many childcare centres short-staffed and having to turn away children.