Australia makes 15% pay rise for early childhood educators permanent

Australia has made a 15% pay rise for early childhood educators permanent after Parliament passed legislation locking in a further $3.6 billion in funding for the wage increase. 

Education Minister Jason Clare, Employment and Workplace Relations Minister Amanda Rishworth and Early Childhood Education Minister Jess Walsh announced the legislation’s passage on Tuesday.

Under the Wage Justice for Early Childhood Education and Care Workers (Special Account) (Extending Support and Strengthening Safety) Bill 2026, a typical full-time educator will receive $255 more per week, while early childhood teachers will earn $410 more per week when combined with minimum wage increases, compared with before the programme began.

More than 80% of eligible early learning services are now receiving the payment, according to the government. Since the pay rise was announced, the early education workforce has grown by 20,000 workers, while job vacancies have fallen by more than 31%.

Rishworth said, “Early childhood educators use their skills to perform a vital role at a critical time in a young person’s development and their tireless efforts should be properly valued.

“Our Government’s historic support for early educator wage rises has made a tangible difference. When combined with Labor’s support for minimum wage rises, a typical full-time educator is earning $255 more per week and early childhood teachers are earning $410 more per week.”

The government said the wage support has coincided with growth in the early childhood workforce and a decline in vacancies.

At Goodstart Early Learning, Australia’s largest childcare provider, the use of agency staff decreased by 69% in the first year of the programme, according to government figures.

Jess Walsh said, “I hear about the difference this pay rise is making every week when I meet with educators. They tell me it’s helping them stay in the jobs they love. It’s providing more certainty and stability for the children in their care. And it’s helping build and retain the stable, dedicated workforce that children deserve. Educators fought for this pay rise – and they deserve every cent.”

The legislation extends funding for the wage increase while retaining a requirement for participating services to limit fee increases for families.

According to the government, fees at centres receiving the payment have grown at around half the rate of centres that do not receive it. The government estimates that the average family will save about $1,500 over the next two years.

The legislation provides a further $3.6 billion over the next two years to keep the wage support in place.

Jason Clare said, “Caring for and teaching children is some of the most important work in the country. Our early educators deserve every cent they get. The payment has worked to bring 20,000 more people into the early education workforce and to keep costs down for families. Turns out if you pay people more, more people want to do the job."

“This will also mean that by law, if you want the pay rise you need to be meeting national safety standards. Nothing is more important than the safety of our children. This will help to make sure safety and quality in early education is what parents expect and what our children deserve.”

The legislation also makes compliance with the National Quality Standard a condition of receiving the wage support.

The government said 95% of early learning services currently meet the safety standard. From July 2027, services that do not meet the National Quality Standard on safety can have their funding cut or suspended.