$8,000 pay increase confirmed for thousands of Aussie workers: 'Double whammy'

Prime Minister Anthony Albanese's pay rise for child care workers has been finalised. (Source: Getty)

Child care workers across Australia have scored a 15 per cent pay increase over the next two years. While the raise is 10 per cent lower than what workers had been calling for, it's set to add at least $8,000 to their annual pay when it's fully rolled out by December 2025.

The $3.6 billion measure, which was announced in the May budget, will see a 10 per cent boost in workers' pay this December and the additional 5 per cent rolled out 12 months later. In even better news, the government will cap child care fee price increases to ensure centres don't pass on the extra pay to parents and guardians.

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

“Giving the next generation the best start in life is essential. Today we deliver fair pay for the people who make this possible.”

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He added that the early child care sector, which employs tens of thousands of people across the country, is vitally important to society because it helps "shape lives and change lives" by preparing young ones for school.

When the first round of the pay rise kicks in, child care workers should see at least a $103 boost in their weekly pay. This will jump to $155 per week by December 2025.

The pay rise will also go to workers employed at outside school hours centres.

Early childhood teachers are expected to get an extra $166 per week from December this year and then have an additional $73 per week 12 months later.

Do you work in child care and have a story? Email stew.perrie@yahooinc.com

The United Workers Union (UWU) said while the base increase is set to be a little more than $8,000 per year across the sector, workers could also see a 3 per cent bump in their pay by July 2025 thanks to the Fair Work Commission.

That would take their overall base pay jump to more than $10,000 by the end of next year.

“This wage increase recognises a group of predominantly female workers who have been undervalued for decades, despite providing the social, emotional and educational foundations for Australia’s next generation,’’ UWU president Jo Schofield said.

The government's fee cap will see child care centres barred from hiking rates by more than 4.4 per cent over the next year. Centres will have to sign an agreement that promises not to increase fees above that cap.

Education Minister Jason Clare said the pay rise would help to boost the number of workers in the industry.

"This is the cost-of-living double whammy – wages up for workers and keeping prices down for families," he said.

"A pay rise for every early childhood educator is good for our workforce, good for families and good our economy."

The government has confirmed it received the final report from the Productivity Commission into early childhood, which is due to be released publicly in the coming weeks.

A draft report from the commission released in November recommended for the government provide universal access to childcare for up to 30 hours a week for all children aged up to five years old.

- with AAP

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