At Harmony, the children and families in our care are at the centre of everything we do, supported by the commitment and dedication of our incredible team. Skilled, passionate educators are the foundation of a nurturing and elevated learning experience, and their retention is crucial. Children thrive when cared for by consistent, familiar educators who are not only enthusiastic advocates for their learning and well-being, but also attuned to their individual needs and educational journey.
At Harmony, putting children first means valuing the incredible educators who nurture their growth and development. That’s why we’ve proudly opted into the Australian Government’s Early Childhood Education and Care (ECEC) Worker Retention Payment Program.
This initiative supports a 15% wage boost over two years, starting with a 10% rise in December 2024.
Furthermore, Harmony will be making the benefits available to our team immediately, as opposed to many other service providers who will be waiting for the rebate to be paid by the Government, which has been said could initially take up to 4 months.
Here’s everything Harmony families need to know about the Early Childhood Education and Care Worker Retention Payment Program and what it means for them.
In August 2024, the Australian Government announced the Early Childhood Education and Care Worker Retention Payment Program as a strategy to improve employee retention and address workforce shortages within the early childhood education sector.
The ECEC Worker Retention Payment Program, part of a $3.6 billion grant initiative, is designed to support a 15% wage increase for early childhood educators over two years. Starting with a 10% increase in December 2024, followed by an additional 5% in December 2025, this program provides funding to support wage increases for eligible educators—benefiting all centre-based Harmony employees
The Program also requires participating care providers to limit any fee increases, capping them at no more than 4.4% between 8 August 2024 and 7 August 2025.
Participation in the Program is optional for childcare service providers and while it may seem like an obvious choice, there are several factors to consider to determine if it is suitable for Harmony. Although the initiative aligns with Harmony’s values and vision, including our strategic priorities of nurturing talent and supporting Harmony families, it does come with its own set of challenges and costs
Childcare service providers have the choice to opt into the grant, but they must apply for the funding, which is not guaranteed. The application process is subject to very strict guidelines, with the first round of funds expected to be made available in early 2025 and back paid to December 2024.
In order for Harmony staff to have immediate access to the increase in wages, an ‘industrial instrument’ needs to be implemented. Implementing the industrial instrument involves considerable setup costs and management of the program will attract significant ongoing administrative expenses.
While the full financial impact remains uncertain as we await further details from the Government, Harmony has made the decision to not only ‘opt in’, but carry the cost of making the benefit immediately available to our educators and staff, as we believe it is the right choice for our team and families.
While many providers plan to wait for government funds to be issued before implementing the wage increase, we’ve chosen a different path. At Harmony, we believe our people are our greatest asset, so we’re passing the wage increase on immediately to eligible employees.
We have invested significant time and resources to develop an Individual Flexibility Agreement (IFA) that will allow our staff to access the increased rate of pay quicker. Taking effect on 2nd December 2024, Harmony employees who activate an IFA will begin receiving the benefits straight away (next scheduled pay), without having to wait for back pay, once government funds are issued.
There has been ongoing bargaining for a multi-employer agreement (MEA) in the ECEC sector, and it is expected that the agreement will be submitted to the Fair Work Commission in the coming weeks. The application process in the Fair Work Commission can take a few weeks and at this stage there is no certainty about if and when the MEA will be approved by the Fair Work Commission. However, Harmony is not currently part of the MEA, and the MEA will not be ready in time for the retention payments to begin.
It is a possibility that Harmony will consider entering into the MEA next year, but at this stage our intention is to remain under the Modern Awards.
By participating in the Payment Program, Harmony also agrees any fee increases for families prior to 7 August 2025 will not exceed 4.4% of the current daily rate, meaning fees will be capped.
We understand that families want the best for their children, and part of delivering consistently exceptional care is ensuring our employees feel valued and supported. Feedback from our family engagement surveys consistently highlight that pay rates for educators are a top priority for our families. By opting into this initiative, we are proving our commitment to making this a reality.
Fair wages help us retain experienced and passionate staff within our network, ensuring continuity of care. By acting now, our team, will experience an immediate benefit from the initiative and we minimise disruptions for both our staff and families.
Like everything at Harmony, we’ve taken great care to evaluate this decision, investing time and resources to ensure it benefits both our team and our families.
Retention is essential for delivering continuity of care, where children are nurtured by consistent, trusted educators who know and understand their unique needs. However, retaining quality and skilled educators requires more than monetary incentives.
At Harmony, we’ve built a holistic approach to support our team, including:
Positive work environment: We foster a vibrant, inclusive culture where every team member is valued, supported, and empowered to make a positive impact on the lives of children, their families and peers.
Professional development: We are committed to a continuous coaching environment and cultivated career pathways ensuring access for all educators to ongoing on-the-job and formal professional development.
Reward and Recognition: Celebrating achievements and milestones is at the heart of our culture. We regularly recognise these successes, culminating in the annual Harmony Awards Gala, where we honour the outstanding efforts and accomplishments of our team.
Furthermore, participating in the ECEC Worker Retention Payment Program underscores our dedication to delivering the best for our team and families. We believe it’s a necessary step to support our educators, enhance continuity of care, and maintain the elevated learning experience that is the Harmony way.
For further information regarding the ECEC Worker Retention Payment Program, please visit https://www.education.gov.au/early-childhood/workforce/wages
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