ChildForum Office of Pre-Primary Education

ChildForum Office of Pre-Primary EducationLead advisor on early childhood care and education 
National membership 

Publisher of the New Zealand-International Research in Early Childhood Journal


Funding breakdown for pay increases - test what impact pay rises would have

money budget

© ChildForum

On 11th May the Minister of Education said that the Government Budget's 2.3% funding increase for teacher-led centres "will go to improving the pay of up to 17,000 qualified teachers working in education and care centres".  A further 1.6% funding increase will help "to meet other cost pressures, including the salary cost pressures for those on higher rates of pay." 

So, every centre needs to make sure that the 2.3% is spent on pay and the 1.6% may be spent on pay but can also cover inflation and other costs.

You are responsible for ensuring that you can afford staff pay rises and you are responsible for meeting the Minister's wish that you spend the 2.3% increase in funding on staff pay.

The way that funding works does not make it simple to do these calculations.

Are you passing on at least 2.3% (or 3.9%) to your staff? 

You can test this out. 

Below is a little spreadsheet that should help you to test this out and check.  

There's also a sanity check - to show possible affordability for your service of a commitment to an annual pay increase. 


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