Although the Government is the primary funder of the sector, it is not the employer and cannot directly set wages or conditions.
The Joint Labour Committee is the formal mechanism established by which employer and employee representatives can negotiate minimum pay rates, which are set down in Employment Regulation Orders, and is independent in its functions.
Outcomes from the Joint Labour Committee process are supported by Government through Core Funding. In this programme year 2025/26 Core Funding has increased by 6% to approximately €350 million with an additional €45 million in ring-fenced Core Funding provided to support early learning and care services in meeting the increased cost of minimum pay rates in the sector.
I recently announced, as part of launch of Shaping the Future: Early Years Action Plan in December, another allocation of up to €15m of ring-fenced funding from September 2026, which amounts up to €45m for the full programme year, to support service providers with costs associated with possible increases in minimum rates of pay negotiated via the independent Joint Labour Committee process. Consequently, over 2 years, the Department has made an allocation of €90 million available to support possible increased rates of pay.
It is not possible to make an exact comparison at staff grade level on the earnings pre the Early Years ERO 2022 and 2025, however, data from 2020 shows that staff in quintile one for Early Years Assistants were earning €10.62 and Room Leaders in quintile one were earning €10.66. The mean salary for Early Years Educators in quintile one in January 2026 is €15 and for Lead Educators is €16, it can therefore be inferred that wages for those in the lowest paid quintiles have increased by 41% and 50% respectively since 2020.
Assumptions
• Data from 2020 is based on those reported by services in the AEYSP 2020/2021 (57% response rate).
• The hourly pay estimates 2026 are based on staff who had an hourly wage recorded in service providers’ submissions for Core Funding in November 2022 and January 6th 2026, but the Core Funding data has been extrapolated to provide an estimate for all staff working in the sector.
• Staff whose rate of pay is entered below the ERO in the data pull are assigned a rate equal to the new ERO valid at that time.
• Calculations are based on wage-data available at a point in time. Some services may have increased wages more recently, which would increase the percentage difference between the two time periods.