Anthony Albanese announces major pay rise for childcare workers

Childcare workers are finally set to receive a significant 15 percent pay increase after the federal government agreed to foot the bill. But it’s still not what unions wanted.

The significant increase for one of the lowest-paid sectors struggling with staff shortages will be phased in over two years, with a 10 percent increase starting in December.

A further increase of 5 percent will be implemented from December 2025.

The government will fund the wage increase and limit the rate increases that childcare centres can charge to ensure the new costs are not passed on to families.

The government’s $3.6 billion investment “recognizes the critical role workers play in preparing children for school.

The prime minister will announce the decision in Sydney on Thursday, saying nursery school teachers “shape and change lives”.

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

‘It is essential to give the next generation the best start in life. Today we offer fair pay for the people who make this possible.’

A typical preschool teacher earning the maximum wage will receive a minimum pay increase of $103 per week. Starting in December 2025, this amount will increase to a minimum of $155 per week.

ECEC employees are among the most important workers in the country and deserve to be paid well.

But the announcement is unlikely to please unions.

In March, Carolyn Smith, executive director of the Early Childhood Education Union, called on the federal government to fully fund a 25 percent pay raise for child care workers, which is estimated to cost $2.3 billion a year.

Ms Smith said low wages at the time led to childcare workers having to leave for better-paid jobs, leaving many childcare centres short-staffed and turning away children.

Childcare workers have been campaigning for better conditions and pay for years