Are early childhood educators getting a pay rise in Australia?
Yes! The Australian Government has committed to funding a well-deserved fifteen per cent wage increase for educators and teachers in early learning and OSHC services, also known as the worker retention payment. This is a big milestone – a culmination of years of advocacy and the months we’ve spent negotiating with government, alongside other sector representatives and unions. It’s a game-changer for our sector, and we’re thrilled to have reached this point.
How can I ensure I’m getting key updates about the pay rise?
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Keep me informed about the pay rise
Will the pay increase for early childhood educators be paid in 2024?
The government will fund a ten per cent pay rise for educators and teachers from December 2024 and a further five per cent from December 2025 through the worker retention payment. That’s a pay increase of at least $103 per week for a typical educator paid at the award rate (increasing to at least $155 per week from December 2025).
This pay rise will take effect from 2 December 2024. Depending on when your service provider’s application is received, you will receive your pay rise with pay backdated from 2 December 2024.
Who can access the government-funded pay rise for educators?
The payment covers eligible educators and teachers who:
- Work at an eligible Child Care Subsidy (CCS)-approved centre based day care or outside school hours care service that opts in to the payment and
- Are covered by either the Children’s Services Award 2010, the Educational Services (Teachers) Award 2020 or a state-based early childhood education and care award, or
- Undertake the duties included in the Children’s Services Award 2010 and the Educational Services (Teachers) Award 2020.
This may include early childhood teachers, educators, cooks, coordinators, directors, room leaders and support workers.
What are the conditions and where can I apply?
The worker retention payment is in the form of a grant which providers need to apply for. To be eligible to apply, CCS-approved centres will need to:
- Limit fee increases to 4.4% over the next twelve months from 8 August 2024
- Engage staff through a workplace instrument that meets the grant conditions, such as the multi-employer agreement or an individual flexibility arrangement (IFA)
Service wage costs are usually around 50–80% of total expenditure, making them the major contributor to fee increases. These increases will now be covered by the government.
Grant applications are open now, but there is plenty of time to apply – applications won’t close until 30 September 2026, and any provider that applies before 30 June 2025 and meets the eligibility criteria by 2 December 2024 will have their payments backdated. This backdating means that even if you apply later, you can still receive the funding to pay your staff from 2 December 2024.
Get help to meet the grant conditions and apply for the funding
What is Community Child Care Association’s role in the pay rise?
Community Child Care Association (CCC), along with Community Early Learning Australia (CELA), was at the negotiating table with the government for more than a year since July 2023, when we kicked off the process that led to this funding announcement. We're very proud to have represented small and community-managed providers in the negotiations for professional pay.
Having played a crucial role in shaping the multi-employer agreement that will allow services to access the pay rise, we know how best to support you to sign on and benefit from it.
How can you support my organisation to access the pay rise?
To access the government’s fifteen per cent pay rise for educators and teachers, providers must meet specific conditions.
Our workplace relations service is ready to guide you through every step of the process. We’ll help you to navigate the grant requirements, including ensuring your workplace instrument is compliant.
Get the expert support you need to access the worker retention payment
Have questions specific to your service? Call us on 1300 346 818.
What if I work in family day care or in home care?
The Department says it will consult with the family day care and in home care sectors to understand how support can be extended to their workforce.
Will it cover on-costs?
The Department says the funding will contribute towards associated on-costs of a wage increase, as long as the funding received is first expended on wages.
Eligible on-costs are:
- Superannuation contributions
- Employee entitlements
- Leave loadings
- Workers’ compensation insurance
- Payroll tax.
What do I need to do next?
- Limit fee growth to 4.4% from 8 August 2024 to 7 August 2025
- Engage staff through a workplace instrument that meets grant conditions, such as the multi-employer agreement or an individual flexibility arrangement (IFA) – we can support you to do this
- Apply for the worker retention payment grant
- Pass on all funding to eligible workers through increased wages.
Why is this good for my children’s service?
The government-funded wage increase is a major step toward addressing educator shortages and ensuring that all children in Australia have access to high-quality education and care. It provides a strong incentive for educators to stay in our sector.