| Children's Services | Effective Date: January 1, 2025 |
| Topic: Wage Enhancement and Workforce Compensation | Replaces: NEW |
| Subject: Workforce Compensation | Policy No. F.12.2 |
Workforce Compensation Funding aims to support the recruitment and retention of the child care workforce, particularly for lower-wage earners. This funding will provide compensation enhancements for Registered Early Childhood Educator (RECE) staff and support for non-RECE staff to address compensation gaps in the sector.
The Workforce Compensation Funding includes two main components:
These supports are designed to help recruit and retain a qualified workforce and are applicable to both Canada Wide Early Learning and Child Care System (CWELCC) enrolled centres/agencies.
Centres and agencies are required to provide workforce compensation through annual wage increases, wage floor increases, and minimum wage offsets as set by the applicable guidelines.
The workforce compensation funding is allocated through two primary streams:
Funding Period
Centres and agencies are eligible to receive workforce compensation funding from their enrolment date until December 31 of each calendar year. This funding is provided to ensure the compensation of eligible staff meets the required wage floor and eligibility criteria for wage increases.
Impact on Salary and Compensation Decisions
It is important to note that workforce compensation funding should not interfere with a licensee’s salary and compensation practices, including collective agreements.
Alignment with Wage Enhancement Grant (WEG)
To qualify for the workforce compensation increases for positions serving children aged 6 to 12, eligible centres and agencies must apply for and receive the Wage Enhancement Grant (WEG) for these positions.
Eligible Positions for Wage Increases
To qualify for annual wage increases or wage floor increases, staff must be Registered Early Childhood Educators (RECE) employed by eligible centres/agencies in positions such as RECE Program Staff, RECE Child Care Supervisors, or RECE Home Child Care Visitors.
Wage increases do not apply to non-RECE program staff or non-program staff, such as cooks, custodial staff, or third-party staff. However, non-RECE staff who support ratio requirements under O. Reg. 137/15 for at least 25% of their time may be eligible for wage increases for those specific hours.
Minimum Wage Offset
The minimum wage offset applies to non-RECE staff who earn less than $15.50 per hour before October 1, 2022, or less than $16.55 per hour before October 1, 2023. This funding is provided to offset the incremental wage increase required due to minimum wage adjustments.
The incremental funding will continue to be funded in 2025 for those that received the funding in 2024. Minimum wage offset funding is frozen at 2024 levels. (Minimum wage offset funding is cumulative up to $1.55 (that is, $16.55 per hour minus $15 per hour).
Non-RECE staff in non-program positions, who spend at least 25% of their time supporting ratio requirements, are eligible for minimum wage offset funding for those specific hours.
Annual Wage Increase and Wage Eligibility Ceiling
From 2023 to 2026, funding must be provided to support annual wage increases for eligible positions earning less than the established wage eligibility ceiling. This ceiling varies by year and position.
For example, in 2025, RECE Program Staff must have an hourly wage below $27 per hour to be eligible for a wage increase, while RECE Child Care Supervisors and Home Child Care Visitors must have a wage below $30 per hour. The annual wage increase is up to $1 per hour, compounded year-over-year, with a maximum of $3 per hour by the end of 2025.
Wage Floor Requirements
Eligible centres and agencies must increase the wage of all eligible RECE staff to meet the wage floor for the respective calendar year. For example, the wage floor for RECE Program Staff in 2025 is $23.86 per hour, while for RECE Child Care Supervisors and Home Child Care Visitors, it is $24.86 per hour. All newly hired eligible staff must be paid at least the established wage floor for the applicable year, plus corresponding benefits.
Order of Operations for Wage Supports
The order of operations for determining wage supports is as follows:
Minimum Wage Offset for Non-RECE Positions
Minimum wage offset funding is available to offset the wage increase required for eligible non-RECE staff earning less than $15 per hour as of 2022. This funding is cumulative and will continue to be provided for the 2025 period, with no additional funding beyond 2024 levels.
Benefits
Workforce compensation funding includes up to 17.5% in benefits to help centres/agencies meet statutory and additional benefit obligations. Statutory benefits include vacation days, statutory holidays, and employer contributions to health plans, while any remaining funding can be used for additional benefits.
Implementation Responsibilities for CMSMs/DSSABs
The Manitoulin Sudbury DSB has an application process in place for workforce compensation funding, which includes clear instructions for determining eligibility for wage increase, wage floor, and minimum wage offset. Once applications are reviewed and approved, funding components will be applied in the order of operations outlined in the guidelines.
Accountability and Compliance
The Manitoulin Sudbury DSB is responsible for ensuring compliance with these guidelines. Any misused funds must be recovered, and regular monitoring of wage payments and communication to staff must be conducted to ensure that funding is used appropriately.
Eligible centres/agencies must adhere to these compensation guidelines, including timely communication with staff about wage changes and ensuring payment of the wage floor and increases within 32 calendar days of receiving funding allocations.
By adhering to these policies, eligible centres and agencies will ensure that workforce compensation requirements are met, contributing to a strong and sustainable early childhood education workforce.