One group of workers to get massive pay boost - what you need to know

  • Pay boost for early childhood workers
  • Wages to be increased by 15 per cent 

The Albanese government is set to give early childhood workers a 15 per cent wage increase, with wages to rise by a combined $258 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 in taxpayers' money from December 2024, followed by a minimum $155 weekly rise from December 2025.

However, in order to access the funding, childcare providers will have to be able to show they have 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 in announcing his latest pre-election spending plan.

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

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

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 $258 by December 2025 (stock image)

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 $258 by December 2025 (stock image)

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 (stock image)

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 (stock image)

'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.

The opposition's spokesperson for early childhood education Angie Bell has lashed the policy for being a short-term 'pre-election sweetener' and ultimately will lead child-care centres to hike their prices to cover the additional cost.

'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.