Claire Kerrane (Roscommon-Galway, Sinn Fein)
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14. To ask the Minister for Children, Equality, Disability, Integration and Youth if consideration will be given to raising the pay of early years educators by €1.50 per hour, as sought by a union (details supplied); and if he will make a statement on the matter. [38970/24]

Roderic O'Gorman (Dublin West, Green Party)
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State investment in early learning and childcare has increased by 72% since the Programme for Government was published. The First 5 investment target set in 2018 was achieved in 2023 - five years early.

In 2025, State investment will be €1.37 billion.

The State is not the employer and therefore does not set the pay or conditions for employees in the sector

However, there is , through the Joint Labour Committee (JLC) process, a formal mechanism established by which employer and employee representatives can negotiate minimum pay rates, which are set down in Employment Regulation Orders (ERO). 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.

Outputs from the JLC process has seen two increases in minimum rates of pay for roles in the sector and positively impacting over 70% and 50% of the workforce respectively.

Outcomes from the JLC process are supported by Government through Core Funding.

In Budget 2025, I secured an additional €15m specifically to support employers meet the costs of further increases to the minimum rates of pay. This allocation, which is conditional on ERO being negotiated by the JLC, translates into full year costs of €45 million for programme year 2025/2026.

On the basis of 2024 data supplied by Partner Services taking part in Core Funding , the estimated annual costs to employers of raising all the minimum pay rates specified in the current ERO by €1.50 per hour is approximately €69.1 million. This figure represents the additional cost to employers of bringing staff, from their current wage or the minimum pay rates set out in the current EROs, whichever is higher, up to the new pay rate set out in the Deputy's question.