Pay rises for childcare workers have helped stem staff shortages and improve education outcomes, employees say, as workers receive another government-funded pay boost.
The final 5 per cent of the federal government's 15 per cent pay rise package will hit early childhood educators' bank accounts from Monday, a year after the program began.
The $3.6 billion measure was intended to attract more workers to the sector and help reduce rates of casualisation, burnout and turnover.
In addition to a landmark award wage increase handed down by the Fair Work Commission, it adds up to about $200 extra per week since December 2024.
Childcare worker recruitment pressure easing
Results indicate the wage bump is working as intended.
"There's still a lot of things we need to address within the early education workforce, but anecdotally, the ability to find educators has increased," said Nesha Hutchinson, vice president of long day care provider peak body the Australian Childcare Alliance.
In the 12 months to August, the number of educators rose by 15,100: an increase of 6 per cent.
Even more significant was the reduction in turnover, with a 14 per cent drop in vacancy rates from October 2024 to October this year, Ms Hutchinson said.
"The most important thing is that we keep them and we look after them, because the things they learn over time, the relationships they have with children, the relationships they have with families, this is what leads to high quality early childhood education," she said.
Limited fee increases
About three-quarters of providers have taken up the government-funded increase, which provides up to a 15 per cent increase on the award wage plus an additional 20 per cent to cover superannuation, workers compensation and other associated costs, Ms Hutchinson said.
To qualify, providers must not increase fees for parents by more than 4.4 per cent over the first year and 4.2 per cent in year two.
