On 1 August 2025, childcare workers voted to accept a pay increase of approximately 10% across all grades. In a ballot of SIPTU members, 90% voted in favour of the proposed increase.
This proposed pay increase will raise the minimum hourly rates of pay to around €15 for those working as educators, and €20.25 for graduate managers.
Early years and childcare workers will likely benefit from the increase as soon as September.
Initial pay increase proposal for the childcare sector
The industry-specific pay increase was initially proposed in June 2025 by the Joint Labour Committee, which is made up of both employers and employees.
The proposal was welcomed by the minister for children, Norma Foley, who also stated that she was committed to implementing an allocation of €45 million for Core Funding.
Core Funding
Core Funding is a government grant that provides support for early learning and childcare providers, as well as making childcare more affordable for parents.
As part of the scheme, however, providers who sign up to core funding must commit to a fee freeze and other operational regulations. For many, these requirements added financial and operational pressure.
The Federation of Early Childhood Providers said that they welcomed the scheme but added that about 10% of early years and childcare providers have opted out of the core funding scheme, which may put some providers under increased pressure.
What does this mean for employers?
This increase will bring about positive change for approximately 35,000 childcare workers around the country and will likely benefit employee retention and recruitment.
The pay rise will also, however, bring about considerate payroll considerations for childcare providers. Employers should plan early to align budgets, communicate clearly with staff, and prepare for the added payroll costs.
Additionally, as with all pay increases, these changes will need to be reflected in your HR documentation; particularly within your employment contracts. It’s important to ensure that any changes to an employee’s terms of employment are reflected appropriately in all relevant documentation.