Dáil Éireann Debate, Tuesday - 8 October 2024
466. Deputy Ivana Bacik asked the Minister for Children, Equality, Disability, Integration and Youth the estimated cost of increasing wages to ERO rates in the early years sector in 2022 and 2024, for early years educators, lead educators, deputy managers and managers, in tabular form. [40165/24]
Amharc ar fhreagraI firmly believe the level of pay for early years educators and school-age childcare practitioners should reflect the value of their work for children, families, society and the economy.
The State is not the employer and therefore does not set the pay or conditions for employees in either early learning and care (ELC) or school-age childcare (SAC) services.
However, there is now, through the Joint Labour Committee (JLC) process, a formal mechanism established by which employer and employee representatives can negotiate minimum pay rates for ELC and SAC services, which are set down in Employment Regulation Orders (EROs). This is an independent process from the Department and neither I, nor my officials, have any role in the proceedings of the JLC and any associated negotiated minimum pay rates, the cost of which is borne by the employer.
Among other objectives, Core Funding supports the ability of service providers to meet the additional costs resulting from the EROs for Early Years Services, as it provides increases in funding to early learning and childcare service providers to support improvements in staff wages, alongside a commitment to freeze parental fees.
The calculation for the 2022 EROs are based on Annual Early Years Sector Profile Survey (AEYSP) 2021/22 data, for which data was collected in June 2022, shortly before the EROs came into force. Based on this data, it is estimated that the total cost to employers of bringing staff up to initial ERO rates whose wages were below the proposed ERO rates was €55 million and are set out by role in the table below:
|
Role |
Rates |
Total wage cost to meet ERO (incl Employer Cost and Extrap) |
|
Educator |
Up to 13 |
€ 18,338,367.04 |
|
Lead Educator |
Up to 14 |
€ 9,471,710.89 |
|
Grad Lead Educator |
Up to 15.50 |
€ 11,968,849.48 |
|
Deputy Manager |
Up to 15.70 |
€ 3,370,182.82 |
|
Manager |
Up to 16.50 |
€ 3,318,400.51 |
|
Grad Manager |
Up to 17.25 |
€ 8,416,768.68 |
|
Total |
€ 54,884,279.43 |
Assumptions made for analysing AEYSP datasets were as follows;
• Where there was no rate of pay recorded for a staff member, the mean rate for the role was used.
• The same approach was used for those who had incomplete working hours recorded in the dataset.
• Reported wage rates under €8/hr and over €70/hr were assumed to be erroneous and were replaced by the average pay rate for the role of the individual staff member.
• A similar approach was used for staff reported to work more than 60 hours a week.
• Where annual (instead of hourly) incomes had been entered, hourly rates of pay were calculated based on the working weeks and hours entered for the individuals.
• As there is no indicator within the AEYSP dataset for Graduate Premiums, the proportion of Lead Educators and Managers with Level 7 and above qualifications was estimated based on the proportions of staff in these roles who are receiving Graduate Premiums in Core Funding.
• The total wage costs include a 20% employer contribution (to reflect PRSI, holiday replacement, and sick pay) and an extrapolation rate associated with the response rate for the dataset.
On the basis of 2024 data supplied by Partner Services taking part in the Core Funding scheme, the estimated costs to employers of meeting the minimum pay rates specified in the June 2024 EROs is €20.1 million and are set out by role in the table below:
|
Role |
June 2024 ERO rates |
Total wage cost (incl Employ Cost and Extrap) |
|
Educator |
€13.65 |
€ 7,771,855.00 |
|
Lead Educator |
€14.70 |
€ 3,177,695.00 |
|
Grad Lead Educator |
€16.28 |
€ 6,215,036.00 |
|
Manager |
€17.33 |
€ 1,452,891.00 |
|
Grad Manager |
€18.11 |
€ 1,485,582.00 |
|
Total |
€ 20,103,059.00 |
In relation to the estimated costs, the following should be noted:
• The cost estimates are based on staff who had an hourly wage recorded in service providers’ submissions for Core Funding, but the Core Funding data has been extrapolated to provide an estimate for all staff working in the sector.
• Cost estimates are based on the most recent data available to the Department which was provided by service providers in May 2024, this data was provided prior to the new EROs for Early Years Services came into force on June 24th.
• Calculations are based on minimum rates of pay set out in the initial ERO which came into effect in September 2022.
• The estimated costs are for the additional cost to employers of bringing staff, from their current wage or the minimum pay rates set out in the first EROs, whichever is higher, up to the new ERO rate. E.g. for an early year’s educator, costs are estimated based on current rate of pay up to €13.65 (Initial ERO minimum rate for Educators 13.00+ increased listed 65c).
• Calculations are based on wage-data available at a point in time. Some services may have increased wages more recently, which would reduce the cost to services of moving from current wage-rates to the propose wage rates in the question.
• The cost estimates only relate to staff and managers covered by the current EROs, i.e. the estimates exclude the cost of ancillary staff.
• The cost estimates do not attempt to account for the potential cost implications for the wages of staff who are currently earning more than the increased rates above current ERO minimum rates.
• Core Funding data on the role of Deputy Manager was inconsistently entered and in small quantities that would not allow for accurate estimates on costing s to be calculate. It is assumed that the role of Deputy Manager is being reflected in the rates of other roles.
