Childcare Workers to Get 15% Pay Increase, Conditional on Centres Limiting Fee Hikes

In a significant move for Australia's early childhood education sector, the Albanese government has announced a 15% pay increase for childcare workers, aiming to address longstanding wage inequity. The phased increase, starting with a 10% boost this December, is a step towards better valuing the sector's workforce. However, there’s a catch: childcare centres must agree to limit fee hikes to 4.4% over the next year to access this funding.

This initiative, part of a $3.6bn package, seeks to prevent parents from bearing the brunt of rising childcare costs, a problem highlighted last year when fee hikes offset subsidy increases. The government hopes that by capping fee increases, parents will be spared further price shocks, while also ensuring the additional funding directly benefits workers.

With staffing shortages exacerbated by the aged care sector’s 23% pay rise, the pressure is on childcare centres to accept these terms or risk losing staff to higher-paying jobs. The policy also extends to outside school hours care, with the intent of expanding access for working parents.

While advocates welcome the wage boost, there’s ongoing pressure on the government to address other barriers, such as the activity test, which restricts access to early childhood education for low-income families. As the sector awaits the Fair Work Commission's review, this policy marks a pivotal moment in the pursuit of a universal childcare system in Australia.

Read the full article here https://www.theguardian.com/australia-news/article/2024/aug/07/australia-childcare-workers-pay-rise-labor-government

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