As we all know, early childhood education is incredibly important to our community, helping to provide services to families and shaping the lives of young children. For years, the sector has faced the problem of low pay for educators, and it’s contributed to workforce instability and retention issues. Recently, the government has announced a big pay rise for childcare educators as part of a sector overhaul. We’ll go into detail on the background, what the change is, and what this means for educators, centres, and families.

Early Childhood Education Pay Background

Childcare educators have been underpaid for years despite the value they bring to the community. This large pay rise is part of the government’s overhaul of the early childhood education and care (ECEC) sector following on from last year’s Cheaper Childcare reforms (which reduced out-of-pocket costs for families). ECEC workers are among the lowest-paid professionals, which has made it hard to attract and retain skilled staff.

This has resulted in one of the highest vacancy rates of any job. Early childhood teaching has been one of the top professions, with educator shortages far outstripping applications, especially in areas like Sydney. Z Staffing has worked hard to help provide childcare centres with qualified casual educators and give higher-than-award rates to educators, lessening this gap.

The new pay rise aims to help fix these problems by making the job more attractive and sustainable. Z Staffing is looking forward to the pressure lessening on both childcare services and educators, because this low pay has not just affected workplace stability, but the quality of care for children.

Pay Rise Details

The government’s $3.6 billion investment in ECEC will be rolled out over two years. Here are the details:

• Phased Pay Increase: 10% from December 2024, 5% from December 2025.
• Immediate Impact: By December 2024, a typical early childhood educator will get at least $103 per week, and by December 2025, at least $155 per week.
• Modern Award Wages Increase: From July 1, 2024, a 3.75% increase in Modern Award wages will apply to those on the Children’s Services Award 2010 and Educational Services (Teachers) Award 2010.
• Hourly and Weekly Pay Changes: A Certificate III in Children’s Services Level 3.1 educator will now earn $27.14 per hour (up from $26.16), and a Level 1 Early Childhood Teacher will get $1,342.69 per week (up from $1,293.85).

Broader Impact on the Sector

The pay rise will have far-reaching effects across the childcare sector, influencing everything from service quality to fee structures. Key impacts include:

• Improved Service Quality: With a more stable and motivated workforce, the quality of care and education provided to children is expected to improve.
• Fee Adjustments: To receive government funding for the wage increase, ECEC services must cap their fee increases at no more than 4.4% over the next 12 months. This condition is designed to keep childcare affordable for families.
• Sector Stability: The wage increase will help reduce the high turnover rates in the sector, leading to more stable and reliable childcare services.

What this Means for You

Educators

Educators will receive these pay rises on a permanent basis, increasing their overall income by 15% and making an enormous difference in their day-to-day. This pay increase can work as a motivational tool, letting you know how valuable your time and commitment are to what you do. It can provide you with increased job satisfaction and higher morale. It can also give you more options when deciding to work as a permanent or casual educator.

Childcare Services

The Australian government is funding this pay rise so long as you do not increase your fees by more than 4.4% over the next 12 months. This helps you to pay your staff higher wages and salaries, without creating a financial burden for your childcare service. With the rising cost of living, being kept below a 4.4% fee increase can still be challenging for your centre. However, you may benefit from a reduced level of staff turnover and increased morale and attitude from your team of educators. Z Staffing can assist you in maintaining your casual staff during this period.

Parents and Children

For parents, the pay rise for educators brings both potential benefits and challenges. On one hand, a better-paid, more motivated workforce is likely to provide higher-quality care and education for their children. On the other hand, there may be financial implications if childcare providers pass on increased costs to families. However, the government’s condition to cap fee increases is expected to help minimise this impact.

• Improved Quality of Care: The increase in wages is expected to lead to better-quality care and education, directly benefiting the children enrolled in these services.
• Fee Stability: With the cap on fee increases, families can expect more predictable childcare costs over the coming year.

The Future of the Childcare Sector

The pay rise is a great step in the ongoing reform of the ECEC sector, but it is also just the beginning. As we look to the future, several key areas will be essential to monitor:

• Ongoing Policy Reforms: The government is expected to continue to improve working conditions in the childcare sector, with the potential for further wage increases following the Fair Work Commission’s review in mid-2025.
• Long-Term Impact: The pay rise is likely to have lasting effects on the early childhood education sector, making it a more attractive and sustainable career path for professionals.

While challenges remain, the overall impact of this pay increase is expected to be overwhelmingly positive for educators, centres, children, and families alike. As these changes unfold, we will help you keep on top of these updates and stay stable in your staffing levels until the dust settles. 

Contact us today to find out how Z Staffing can help you!