Childcare and out-of-school-hours workers will pocket an extra $155 a week in pay, with laws to be introduced to federal parliament today.
The proposal establishes a 10 per cent pay increase from December, with a further five per cent from the end of 2025.
The wage rise will be dependent on childcare centres agreeing not to increase fees to parents by more than 4.4 per cent.
The laws will set up a fund to guarantee the pay rise will be passed on to childcare workers in coming years, regardless if there is a change of government.
Prime Minister Anthony Albanese said the wage increase would help ensure more workers stayed in the sector and attract new employees.
“Australian families trust our early educators with the thing that is most precious – our young Australians,” he said.
Education Minister Jason Clare said there would be another price cap imposed on childcare fees, which would be informed by the Australian Bureau of Statistics.
“If you’ve got more early educators that means more mums and dads can get their children into care. That means they can go back to work. That means the economy is more productive,” he said.
Mr Clare said he would be releasing the Productivity Commission’s final report on childcare and how to make it universal “very soon”.
Early Childhood Education Minister Anne Aly said the government knew that when childcare subsidies increased, prices went up.
“That’s why we’ve tied this to a price cap, to ensure that every cent of that 15 per cent goes to these educators,” she said.
AAP