The Federal Government-funded wage rise will be delivered over 12 months, with services whose workers receive the increase unable to lift fees more than 4.4 per cent over the next year.
The Parenthood CEO Georgie Dent says this is good news for both educators and parents struggling with the cost of living.
“This has been decades in the making and is a victory for every early childhood educator and teacher – past, present and aspiring, as well as children and families,” Ms Dent said.
“It is also momentous for gender equity as it directly addresses the chronic undervaluing of a highly feminised workforce, and bolsters a critical enabler of women’s workforce participation.”
The Parenthood commends the Commonwealth Government for responding to calls from the sector, unions, advocates and economists to make this historic investment.
“Early childhood educators, the vast majority of whom are women, have been chronically underpaid and undervalued for too long. This correction will mean their wages better reflect their skills, as well as the critical importance and value of their work and profession.”
Ms Dent says that the wage rise is a crucial step towards gender equity and a quality and universally accessible early childhood education system.
“This will provide much needed cost-of-living relief to the women who make up 97 per cent of the early childhood educator workforce, who are often paid as little as $24 an hour, and help boost their own economic security.
“It will also help boost the financial security of women with children more generally. For too many mothers not being able to access quality, affordable early education and care, limits their capacity to participate in paid work and develop financial security.”
The pay rise will help stem the loss of early educators who are leaving in record numbers because they cannot afford to cover their own cost of living.
“Record staff vacancies in early education have been felt particularly keenly in regional, rural and remote areas with early learning services either closing altogether or reducing numbers. Access to early learning will only improve with more educators being incentivised to stay in the profession.
“There is no early childhood education and care without educators, so this is a fundamental step towards retaining and building a workforce to deliver universal, quality early childhood education and care.
“The recent wage increases in the aged care sector, funded by the Federal Government, led to a sharp decline in vacancies, highlighting that higher wages can help address workforce shortages.
“We can expect this wage rise to have a similar effect by reducing the number of educators leaving the sector and attracting a higher number of aspiring educators.”
Echoing the sentiments of the early learning sector and unions, Ms Dent said “early childhood education is one of the lowest paid professions in the country, and the sector is currently facing severe workforce shortages.
“Educators are at the heart of the early learning system, and this wage increase marks the start of a stronger, more sustainable early childhood education and care sector.
“Federal and State Governments have invested in training incentives for the educator workforce over the past few years.
“The Parenthood commends the Commonwealth Government for investing in this profession which plays a critical role in shaping Australia’s future.
The benefits of the wage rise will be seen in myriad ways – from higher early learning and preschool enrolment rates to better workforce participation for women; educators and working mothers alike.”