Early childhood and out-of-school hours staff are in line to receive a 15 per cent pay rise over two years, following a $3.6 billion boost by the federal government.
The wage rise would only take place if centres agree not to increase fees for parents by more than 4.4 per cent.
Educators will get a 10 per cent increase to their take-home pay from December, before getting a further five per cent from December 2025.
We're giving child care workers a 15% pay rise.— Anthony Albanese (@AlboMP) And keeping fees down for families.August 7, 2024
Prime Minister Anthony Albanese said boosting wages in the sector was a way of ensuring a government-funded childcare scheme could take place in the future.
"We're looking at the move towards universal provision of affordable childcare ... you do that in stages. A pre-condition for a successful sector is paying workers a decent wage," he told reporters in Sydney on Thursday.
"Like our nurses and other sectors that have been dominated by women, the care sector needs to be valued."
It comes as the government confirmed it had received the final report from the Productivity Commission on its review into the childcare sector.
A draft report from the commission released in November recommended the government provide universal access to childcare for up to 30 hours a week for all children aged up to five.
While the sector has welcomed news of the wage increase, it's less than the 25 per cent pay rise advocated for ahead of May's federal budget.
Shadow treasurer Angus Taylor did not say whether the coalition backed the pay rise for workers, indicating the opposition needed to go through specifics behind the policy.
Anthony Albanese and Jason Clare say the pay rise will boost the childcare industry. (Lukas Coch/AAP PHOTOS)
"We want to see higher real wages for all Australians right now, and we know the primary way to achieve that is to beat inflation," he told ABC Radio.
"If (the prime minister) can raise real wages for Australians, of course we're going to support it, but ultimately, you've got to give us a bit of time to have a work through this."
Mr Albanese hit out at the reluctance of the opposition to support the wage rise.
"They've learnt nothing. They don't value the work that working people do, they speak about cost of living, but won't provide any support for any cost-of-living measures."
Australian Childcare Alliance president Paul Mondo welcomed news of the pay rise.
"We have been working for a long time for this announcement and while there is a lot more for us to determine, this is a very positive step in the right direction," he said.
"The only meaningful way to implement improved wages for our workforce is through government funding to ensure that families are not left out of pocket."
The chief executive of advocacy group The Parenthood, Georgie Dent, said the wage rise was historic.
"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," she 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 Australian Education Union's Meredith Peace called for further funding for childcare workers. (James Ross/AAP PHOTOS)
While the Australian Education Union said the move was a good step, its Victorian branch president Meredith Peace said more funding was needed.
"Early childhood teachers and educators are also looking to the federal government for additional investment for the inclusion of entitlements that address workload," she said.
"With 11,000 more teachers and educators required in Victoria over the next decade, professional pay and good working conditions are key to attract and retain this growing workforce."
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