In 2024, the IEU along with other unions, reached a historic sector-wide multi-employer agreement initially covering more than 50,000 employees in long day care centres and more than 500 employers, delivering sector-wide pay increases.
These long-overdue pay rises were funded by the federal Albanese government through the Worker Retention Payment (WRP) scheme.
However, the funding for these increases will expire in November 2026. This is why the IEU calls on the federal government to lock-in a permanent 15% pay rise for workers in long day care services nationwide.
IEUA Federal Secretary Brad Hayes in March wrote to the Early Childhood Education Minister, Senator Jess Walsh, about whether the federal government would provide funding to make the pay rises permanent. Read letter
IEUA NSW/ACT Branch Secretary Carol Matthews said the WRP pay rises have alleviated some of the staffing pressures in services, but it is only a temporary measure.
“Workers, who are predominantly women, are worried that when the funding ceases at the end of the year, they will suffer a drop in their pay, causing disruption across the sector, she said.
“For far too long, the work of early childhood education and care workers has been undervalued, resulting in workforce shortages that threatens the quality of education and care provided to children and families. We need a permanent solution to the problem.”
Permanent funding required for stability and sustainability
Early childhood education is an essential service. Backed by the federal government, wage increases have been passed to workers in long day care centres without raising costs for families.
The success of the program has now expanded to nearly 200,000 employees across more than 10,000 employers who have accessed the WRP to deliver a 15% pay rise.
“We are already seeing the benefits gained through the Worker Retention Payment, but these benefits cannot be sustained without ongoing government support,” Matthews said.
“If wages fall after the end of the Worker Retention Payment, we will see workers leaving in droves and the workforce crisis will worsen.”
“We need the government to step up and make the funding permanent to secure a stable and sustainable future for early childhood education”.
When we stand together, we create a better sector.
In 2024, we stood together to fight for the pay rise.
In 2026, we stand together again to defend what we fought for and to lock-in the pay rise permanently.
The ECECWRP finishes in November 2026. We need you to encourage your colleagues to join the IEU and help us secure ongoing pay rises for early childhood teachers next year.
This update is part of the March 2026 EXEC Extra enewsletter. Stay across all our updates for early childhood teachers on our ECEC page or via our Facebook community group for members only.
