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Wage-setting Mechanisms

Dáil Éireann Debate, Tuesday - 23 June 2026

Tuesday, 23 June 2026

Ceisteanna (78)

Mark Wall

Ceist:

78. Deputy Mark Wall asked the Minister for Children, Disability and Equality the estimated cost of increasing the hourly rate for educators by €1; and if she will make a statement on the matter. [46905/26]

Amharc ar fhreagra

Freagraí scríofa

Pay is one of a number of challenges impacting the early learning and care and school-age childcare workforce. The level of pay for early years educators and school-age childcare practitioners does not reflect the value of their work for children, families, society and the economy.

Although the Government is the primary funder of the sector, it is not the employer and cannot directly set wages or conditions for any staff in the sector.

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.

Pay and conditions are improving. Through the work of the JLC and successive ERO’s, minimum pay rates have now risen three times in four years, delivering an average 15% increase in minimum rates of pay. This marks significant progress in professionalising the workforce. The latest ERO came into effect in October 2025 which saw an increase in minimum pay rates of, on average, 10% and will increase pay for over 67% of staff in the sector.

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 services in meeting the increased cost of minimum pay rates in the sector. For programme year 2026/2027, I recently announced that Core Funding will be increased by 23% to €480 million. An additional €45 million has also been ringfenced from September 2026 to support services in meeting the potential costs of increasing rates of pay, contingent upon new ERO’s being enacted following successful negotiations by the independent JLC.

The estimated full year costs of a €1 increment to wages and associated costs for early years educators and school age care practitioners is over €38.49 million.

ERO Role

€1 Increment

Educator

€17,282,032

Lead Educator

€4,439,768

Graduate Lead Educator

€10,797,202

Deputy Manager

€1,451,941

Manager

€1,926,171

Graduate Manager

€2,593,516

Total

€38,490,631

• Cost estimates are based on the most recent data available to the Department which was provided by service providers in May 2026.

• A 21% employer cost has been included in the calculations (to cover PRSI, Holiday pay, Sick Pay and Auto Enrolment Pension contributions).

• The cost estimates only relate to staff and managers covered by the current Employment Regulation Orders, i.e. the estimates exclude the cost of ancillary staff.

• Costs only related to increasing those staff below the new proposed rates.

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