New €13 per hour minimum rate will mean pay rise for 70% of childcare staff

There are hopes the new rate will help the recruitment and retention crisis in the childcare sector.

Both unions and the Government have hailed a “historic” pay deal that will set minimum wages in the early childhood care and education sector for the first time, and give more than 70% of staff a pay rise.

An early years educator will now earn at least €13 an hour, and activists hope this improvement will help to alleviate the recruitment and retention crisis in the sector.

However, representatives for workers have also said that this is only the first step in what the Government must do to support the sector, while Ibec has warned that some childcare services “will struggle to sustain higher wages and will be forced to close their doors without significant Government investment”.

Under the deal agreed, the minimum hourly rates will take effect from September 15.

It will mean the following professions within the sector will earn at least a certain amount per hour, from €14 for a lead educator to €17.25 for a graduate manager.

It is expected that one in five workers will receive a 20% rise in their wages as a result of the deal.

Early years teacher and Siptu activist Deborah Reynolds said that the agreement had “finally” come after years of campaigning.

Profession is 98% female 

“Our profession is 98% female,” she said. “We educate and care for tens of thousands of children every day, yet our profession has been one of the lowest paid jobs in Ireland. Up to now, a majority of early years educators have earned below the living wage of €12.90.” 

Ms Reynolds added the legally-binding agreement negotiated on behalf of the union’s 6,000 members will “end poverty wages and set us on a path to professional pay and recognition”.

Early Childhood Ireland, which has 3,800 members in the sector, said that this “historic moment” must be met with further Government investment into the future.

Its CEO Teresa Heeney said: “[This] must be followed by further funding in 2023 and beyond, so that these basic minimum scales can be increased.” 

The Federation of Early Childhood Providers, which has 1,400 members representing business owners in the childcare sector, also welcomed the wage agreement, but called on the Government to step up in the upcoming budget.

Its chairperson Elaine Dunne said: “It's a great move for the whole sector. It will help to retain staff within the sector and to encourage new workers to come in and work with us as well.” 

More support needed

However, Ibec group Childhood Services Ireland said that while the improved pay will help to improve staff retention, it would be “unsustainable” for many childcare providers without further Government support.

Its director Darragh Whelan said: “Valued at €221m, the [Core Funding Scheme] scheme means that Government now has a real opportunity in Budget 2023 to improve affordability by raising childcare subsidies and improve providers’ sustainability by covering non-staff overhead cost pressures.” 

Minister for Children Roderic O’Gorman said that addressing pay and conditions in the sector will “help to ensure that childcare professionals can see a future for themselves in a job I know so many of them cherish”.

He said this announcement comes ahead of the full launch of the Government’s Core Funding scheme for childcare which will see funding to support improvement in staff wages alongside a commitment to freeze parental rates.