30/08/2024
This week, the Australian Government announced it would fund a 15% increase to wages for early childhood educators, including out of school hours care (OSHC) employees.
The funding will be delivered in two phases with an initial increase of 10% being provided from December 2024 and a further 5% increase from December 2025.
While the specific requirements and details of the funding are not yet known, the Government has stated funding will only be provided to providers if they:
- have a registered industrial instrument (such as an enterprise agreement) with the Fair Work Commission; and
- cap their annual fee increases at 4.4% for the 12 months from 8 August 2024.
The funding must be passed directly on to employees and cannot be used by employers to fund other activities. The specific requirements and structure of the funding are yet to be confirmed and there are a number of uncertainties around the Government’s proposal, including how it impacts those providers already paying above Award rates.
We continue to review developments as these are released.
If you need any assistance in preparing an enterprise agreement in the lead up to December, or have questions on these changes, our employment team are available to assist.