What is the ECEC Multi-Employer Agreement?
The ECEC Multi-Employer Agreement 2024-2026 is a formal industrial agreement covering specific employers and employees in the children’s services and early childhood education sector.
Its primary goals are to provide funded pay and working conditions, set standards for professional development, and support staff attraction and retention.
Who is covered by this Agreement?
The agreement covers employers who have opted in for these payments through their application and their eligible employees. For more details, please refer to this article.
Note: This agreement generally operates to the exclusion of modern awards (unless expressly incorporated) and does not cover services like adjunct care, standalone preschools, occasional care, or out-of-school hours care.
What is the ECEC Worker Retention Payment (EWRP)?
The EWRP is a federally funded payment designed to facilitate higher wages for ECEC workers.
- Structure: The EWRP forms part of the employee's ordinary hourly rate for all purposes of the Agreement and is paid as an all-purpose allowance.
- Future Increases: Following the Annual Wage Review, employers must ensure employees are paid at least 10% above the award rate in 2025 and 15% above in 2026.
How are the wage rates determined?
Wage rates are calculated through a three-step process to establish an employee's Base Rate and EWRP Rate.
Step 1: Identify Base Components
- Actual Ordinary Rate of Pay (AORP): This is the historical baseline hourly rate that applied to the immediately before the retention payment arrangement commenced. For employees under the Children's Services Award , refer to Schedule A.2, Table 1 on page 80 of the EMEA.
- Retention Payment 1 (RP1): This is a fixed hourly dollar amount mandated by the Commonwealth Government. For employees under the Children’s Services Award, refer to the Grant Opportunity Guidelines under Schedule A, Table 1, Column 5.
- Retention Payment 2 (RP2): An additional payment calculated as 5% of the employee’s AORP.
Step 2: Calculate the Total Ordinary Rate of Pay (ORP)
The employee's total ORP is the sum of these three components:
- Total ORP = AORP + Retention Payment 1 + Retention Payment 2
Step 3: Mandatory Compliance Check
Under Clause 11.7(a) of EMEA, the Total ORP must be at least 10% above the current minimum Award rate (referred to as the "Combined Figure").
Scenario A: When the Calculated ORP is equal to or higher than the Combined Figure:
- EWRP Rate = Retention Payment 1 + Retention Payment 2
- Base Rate = AORP
Scenario B: When the Calculated ORP is less than the Combined Figure:
The Base Rate must be increased until the total pay matches the required minimum.
- EWRP Rate = Retention Payment 1 + Retention Payment 2
- Base Rate = Combined Figure (the higher) - EWRP Rate
Example of Scenario A: When the Calculated ORP is equal to or higher than the Combined Figure
Below is the calculation of a CSE Director L6.4 (On Commencement)
Calculate the ORP:
- AORP: $41.02 (Source: EMEA Page 80, Schedule A.2, Table 1. This is the rate prior to the commencement of the retention payment agreement)
- Retention Payment 1: $4.10(Source: Grant Guidelines, Schedule A, Table 1, Column 5)
- Retention Payment 2 (5%): $41.02 x 0.05 = $2.05
- Total retention payment component: $4.10 + $2.05 = $6.15
Final Calculated ORP is $41.02 + $6.15 = $47.17
Comparison step:
Compare the Calculated ORP against the Combined Figure (Award Rate + 10%):
- Current Minimum Award Rate: $42.46 (Children’s Services Award).
- Combined Figure (Award + 10%): $46.71
Because the Calculated ORP ($47.17) is higher than the Combined Figure ($46.71), the employer will pay the higher rate of $47.17 per hour under the EMEA
Wage Rate Breakdown:
- EWRP Rate: $6.15
- Base Rate: $41.02 (AORP)
Example of Scenario B: When the Calculated ORP is less than the Combined Figure
Below is the calculation of a CSE L1.1 (On Commencement)
Calculate the ORP:
- AORP: $23.97(Source: EMEA Page 80, Schedule A.2, Table 1. This is the rate prior to the commencement of the retention payment agreement)
- Retention Payment 1: $2.40 (Source: Grant Guidelines, Schedule A, Table 1, Column 5)
- Retention Payment 2 (5%): $23.97 x 0.05 = $1.20
- Total retention payment component: $2.40 + $1.20 = $3.60.
Final Calculated ORP is $23.97 + $3.60 = $27.57.
Comparison step:
Compare the Calculated ORP against the Combined Figure (Award Rate + 10%):
- Current Minimum Award Rate: $26.19 (Children’s Services Award).
- Combined Figure (Award + 10%): $28.81.
Because the Calculated ORP ($27.57) is less than Combined Figure ($28.81), the employer must pay the higher rate of $28.81 per hour under the EMEA
Wage Rate Breakdown:
- EWRP Rate: $3.60
- Base Rate: $28.81 - $3.60 = $25.21 (the Base Rate must be increased in order for the total pay to match the required minimum).