New Employment Regulation Order (ERO) for Early Years and Childcare

The 2025 Employment Regulation Order (ERO) for the Early Learning & Childcare (ELC) sector came into effect on 13 October 2025, bringing updated minimum pay rates and clarifying staff entitlements. At MSS The HR People, we help ELC providers understand and implement these changes effectively, balancing regulatory compliance with practical workforce management.

Key Changes in the 2025 ERO

Minimum pay rates
The ERO updates minimum hourly rates across various roles in the sector. The new rates are:

• Early Years Educators & SAC Practitioners: €15.00 per hour
• Lead Educators (Room Leaders) & SAC Coordinators: €16.00 per hour
• Graduate Lead Educators & Graduate SAC Coordinators: €17.50 per hour
• Deputy/Assistant Manager: €18.00 per hour
• Centre Manager: €19.00 per hour
• Graduate Centre Manager: €20.25 per hour

These increases affect around 35,000 staff, with an additional €45 million in Core Funding to help centres meet the new rates.

1. Qualification related pay adjustments
   Staff with formal ELC qualifications (e.g., Level 5 or above) may be entitled to higher rates. Employers must carefully audit current staff qualifications to ensure pay compliance.
2. Working hours and patterns
   The ERO provides clarity on typical working hours for full-time and part-time staff, as well as how variable hours workers should be compensated. This is especially important for rostering in smaller centres with fluctuating enrolment.
3. Public holiday entitlements
   Variable hours staff must be paid in accordance with the Organisation of Working Time Act 1997 and relevant regulations.

Implications for SMEs

• Budget and payroll planning
  Updated rates may increase staffing costs. Centres should review current budgets, consider potential increases, and ensure payroll systems accurately reflect the ERO changes.

• Compliance audits
  Employers should conduct regular internal audits to check that staff pay aligns with qualifications, tenure, and hours worked.

• Staff retention and recruitment
  With the sector under pressure, offering competitive rates and clear public holiday/leave entitlements is critical for attracting and retaining skilled staff.

How MSS The HR People Can Help

• Pay audits and benchmarking

 We review your payroll against the ERO to ensure full compliance.

• Workforce planning

Tailored guidance on rostering, variable hours, and public holiday pay.

• Policy updates

Drafting or updating employment contracts, handbooks, and HR policies in line with the ERO.

• Training and support

Helping managers and HR teams understand practical implications and communicate changes to staff effectively.

Conclusion

The 2025 ERO reinforces the importance of fair pay, transparent policies, and compliance in the ELC sector. For SMEs already balancing tight budgets and staffing challenges, understanding these changes is crucial to avoiding compliance risks and maintaining a motivated workforce.

At MSS The HR People, we provide hands-on support to ensure your centre is ready for the ERO while maintaining operational efficiency and employee satisfaction.

Contact MSS The HR People

info@mssthehrpeople.ie

 Phone: 01 8870690