The majority of childcare and creche workers are in line for a hike of at least €1 in their hourly rate under a new move to boost retention.
The increase comes in a €45m allocation to the sector that will involve negotiation. But an identical allocation last year saw average hourly earnings rise from €13.65 to €15.
“I can’t overemphasise the value of staff, many of whom have degree qualifications and who should be paid and supported,” Children’s Minister Norma Foley said.
“They are entitled to be recompensed for the excellence of their work.”
There are some 37,000-39,000 childcare workers in the sector, with around three-quarters expected to benefit. The remaining quarter are already paid in excess of industry norms.
The news came as the minister announced details of the new maximum-fee caps for early-learning and childcare services who participate in a state scheme called Core Funding.
The new caps will lower the maximum fees that can be charged by new and existing early-learning and childcare services under the national umbrella.
Under the changes, the highest possible upfront cost for a typical full-day place of 45 hours per week will drop from around €198 per week to €183.70 per week.
The majority of children catered for nationally fall into the 45-hour category, although some youngsters are minded for 50 hours a week and more.
There are universal subsidies under the National Childcare Scheme. Higher subsidies are available for many parents, depending on their level of income and the age and number of children in their family.
This new measure “represents a significant advance in standardising fees across the sector”, the minster said, adding that she “absolutely will” be targeting further cost reductions in budget talks with the Finance and Public Expenditure ministers.
“I will be going into budget negotiations absolutely determined to get as much money as we can,” she said.
The sector has historically seen different rates charged by providers for the same level of provision, with city dwellers, particularly in Dublin, paying highest rates.
The fee reduction in the state sector will come into effect in September and will be accompanied by record state funding of €480m this year for over 4,600 providers.
Facilities will also be allocated funds to meet their staffing and general operating costs in return for maintaining a fee freeze for parents and observing maximum fee caps.
Approximately one in eight facilities will be required to reduce at least one fee.
However, the majority of parents are already paying below the new maximum fees. Much of this relates to geographical dispersal and average incomes.
These others will continue to benefit from the fee freeze introduced in 2022, the minister said.
State funding in the early-learning and childcare sector has more than doubled in recent years – rising from €730m in 2022 to over €1.5bn this year.
