Fed Budget: New Pay Deal For Early Educators A Critical Productivity Lever, Chief Executive Women Says
19 March, 2026
NewChief Executive Women (CEW) has welcomed reports that the Federal Government will fund a new wage deal for early childhood educators ahead of the expiry of the current Worker Retention Payment in November [1].
CEW CEO Lisa Annese said the measure would help strengthen the sector's workforce, keep early education accessible for working families and ensure primary carers can continue to participate in the economy.
"Early educators help support children's development and enable hundreds of thousands of families to work, earn and contribute to the economy. They deserve decent pay for the vital work they do," Ms Annese said.
"Decent pay for educators is also critical to addressing staffing shortages in the sector.
"When services are understaffed or inaccessible, it is primary carers, who are predominantly women, who bear the cost through reduced hours or withdrawal from the workforce entirely.
"This measure is also an important step towards protecting the wages of workers in a sector where more than 90 per cent of the workforce are women. Adequately valuing the care economy is central to closing the gender pay gap."
Ms Annese said a well-supported workforce that receives decent pay was crucial to realising a universal early childhood education and care system, which is a critical enabler of workforce participation and childhood development.
"This measure brings us closer to a universal system. We encourage the government to ensure it provides a lasting bridge to the Fair Work Commission's wage increases, giving educators certainty and helping grow a professional sector that attracts both men and women."
CEW's Pre-Budget Submission [2] calls on the Government to invest in the care economy as a driver of women's economic security and workforce participation, including through sustained investment in the early childhood education workforce.
The submission also calls for strengthened governance and child safety across the sector, including the implementation of a stewardship model with an independent ECEC Commission, the establishment of a national childcare educator register, and stronger quality assurance and reporting mechanisms.
[1] Budget to fund new pay deal for childcare workers – The Australian Financial Review
[2] Pre-Budget Submission – Chief Executive Women
Media Contact: Mayank Gurnani
E: mgurnani@cew.org.au
M: +61 414 463 827
About Chief Executive Women
Since 1985, Chief Executive Women (CEW) has influenced and engaged all levels of Australian business and government to remove the barriers to women's progression and ensure equal opportunity for prosperity. CEW's 1,400 members represent Australia's most senior and distinguished leaders across the country's largest private and public organisations, collectively overseeing over 1.3 million employees and $749 billion in revenue.
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