ECE Salaries and Childcare Funding Work in Canada: What RECEs Need to Know for 2025

Are you a newly hired Early Childhood Educator (ECE) in Ontario, and unsure how your salary is calculated? You’re not alone.

Many Registered Early Childhood Educators (RECEs) and childcare providers are unclear about salary structures, especially with federal funds from the Canada-Wide Early Learning and Child Care (CWELCC) system, Canada-Wide Workforce (CWW) Funding, and Provincial Wage Enhancement (PWE).

Let’s break down everything clearly so you can understand your ECE salary structure and know exactly what to expect on your pay stub in 2025.

Understanding the Child Care Sector in Canada

Increasing the number of child care spaces is crucial for meeting the growing demand from families across urban and rural Canada. The delivery of high-quality early childhood education depends on both sustainable funding and the well-being of educators.

The childcare sector is vital to Canada’s social and economic fabric, with child care centres offering essential services to families with young children. RECEs are at its core, delivering quality care and education to children aged 0-12 in licensed childcare centers and family childcare homes.

Child care employees face significant challenges, particularly in terms of benefits and job satisfaction, with many lacking health benefits and pensions. Each province and territory regulates child care services, setting unique standards for licensed programs.

Despite its importance, the sector faces challenges such as staffing shortages, funding gaps, and varying standards of care. Continued investment is crucial for ensuring ECEs can sustainably deliver high-quality childcare.

Might be Useful: How to Start a Daycare in Canada

RECE Wage Floor: $24.86/hour in 2025

In 2025, the Ontario government has established a wage floor of $24.86/hour for RECEs in licensed childcare centers participating in CWELCC. While the wage floor is not the same as minimum wage, it acts as a sector-specific benchmark for RECE compensation under the CWELCC system. This minimum ensures fair compensation but can cause confusion about how salaries are structured.

Compared to the average wage within the ECE sector, which varies based on experience levels and job classifications, the wage floor provides a baseline that may be higher or lower than what some employers offer.

Factors Influencing Early Childhood Educators' Salaries

Several factors determine your ECE salary:

• Geographic Location: Urban areas typically offer higher salaries than rural regions.
• Education and Credentials: Higher qualifications like diplomas or degrees can lead to better pay.
• Employment Setting: Licensed child care programs often pay higher than family childcare homes or informal care settings.

Provincial wage grids and funding enhancements have positively impacted ECE wages, yet ongoing improvements are necessary for fair, nationwide compensation.

Pay can vary significantly between child care settings, with center-based programs often offering higher wages than home-based care. The ECE wage grid in Ontario and other provinces helps guide compensation by role and experience level.

Base Pay vs. Wage Enhancements for Early Childhood Educators

Your total hourly wage within a child care program may comprise several components:

Federal funding also supports the CWW and PWE, enhancing overall compensation for quality and workforce development. Programs such as the PWE provide a $2/hour enhancement to eligible early childhood educators working in licensed settings.

Example Wage Breakdown

Here’s an example:

• Base Pay: $21.50/hour
• PWE: $2.00/hour
• CWW Funding: $1.36/hour

Total: $24.86/hour

This breakdown shows you’re being correctly compensated, with government funding supplementing your base pay. Wage top-up funding also contributes to the total wage by providing additional financial support to enhance the wages of certified frontline staff, such as early childhood educators, in licensed childcare programs.

Reading Your Childcare Pay Stub

Your pay stub will typically clearly itemize:

• Your base wage
• PWE as a separate line item
• Any additional CWW funding

To verify your CWW amount:

$24.86 (wage floor) - Base Pay - PWE = CWW Funding

Transparent pay stubs ensure you understand and can confirm your fair compensation. This is especially important for child care staff to ensure they understand and can confirm their fair compensation.

Explore 2025 childcare costs in the USA with a state-by-state guide.

Benefits and Pension Plans

Comprehensive benefits and pension plans are crucial for early childhood educators, as they provide essential support for their well-being and long-term financial security. Unfortunately, many ECEs currently lack access to these vital supports, which include healthcare, dental coverage, paid sick leave, retirement plans, and other health benefits. This gap in benefits can impact their job satisfaction and retention rates within the child care sector.

In recent years, some provinces have recognized the importance of offering comprehensive benefits to ECEs and have begun implementing programs to address these needs. For example, certain provinces have introduced health benefit packages that cover medical and dental expenses, as well as paid sick leave policies to ensure that early childhood educators can take time off without financial strain. Additionally, there are efforts to establish retirement savings plans, such as registered retirement savings plans (RRSPs), which help ECEs prepare for their future.

The Canadian government remains committed to developing robust support systems for early childhood educators, recognizing that attracting and retaining qualified staff is essential for delivering exceptional care and education. By working collaboratively with provincial and territorial governments, as well as child care operators, the federal government aims to expand access to benefits and pension plans across the country.

Furthermore, the introduction of wage top-up funding and wage enhancement programs has been instrumental in improving compensation for ECEs. These initiatives not only provide financial support but also contribute to the overall well-being of child care employees, ensuring they feel valued and fairly compensated for their work.

Enhanced benefit plans are also beginning to include mental health supports, helping educators manage the emotional demands of child care work. Provinces like British Columbia have introduced initiatives to provide dental and health care coverage for early childhood educators.

Ultimately, the goal is to create a more supportive and sustainable environment for early childhood educators, enabling them to focus on their critical role in child development and early learning. By investing in comprehensive benefits and pension plans, Canada can build a stronger, more resilient child care system that benefits both educators and the families they serve.

Earning Above the Wage Floor

Some childcare centers choose to pay higher wages above the $24.86/hour wage floor to attract and retain quality educators. Wage enhancement programs help centers maintain competitive compensation packages. However, this varies widely depending on the center’s financial capabilities.

Useful Read: Daycare Business Financial Planning

Child Care Funding and Policy

The federal government has made a significant commitment to the child care sector through the Canada-wide Early Learning and Child Care system. This initiative aims to develop high-quality, affordable child care programs across Canada, addressing the unique needs of each province and territory.

Eligible child care programs, including licensed child care centers and family child care providers, can receive grant funding to support their operations. This funding is crucial for various purposes, such as wage top-ups, professional development, and other initiatives that benefit early childhood educators and child care workers.

The overarching goal of this funding is to improve the quality and affordability of child care, making it more accessible to families across Canada. By working closely with provincial and territorial governments, the federal government ensures that child care policies are tailored to meet the specific needs of their respective jurisdictions.

Reducing child care fees for families is also a major goal of the Canada-wide Early Learning and Child Care system, ensuring affordability across all provinces. By capping parent fees, provinces aim to reduce the financial burden on families while maintaining service quality.

The Canada-wide Early Learning and Child Care system aims to create a more cohesive and comprehensive approach to child care, with a strong focus on supporting the development of young children. This integrated child care framework promotes equitable access, consistent standards, and improved working conditions across Canada.

Workforce Development and Support

The child care sector faces significant workforce challenges, including high turnover rates and staffing shortages. To address these issues, the federal government has introduced several initiatives aimed at supporting the development and retention of early childhood educators. Investing in ECEs not only improves child development but also drives economic growth by enabling greater workforce participation among parents.

These initiatives include funding for professional development, wage top-ups, and other benefits that support the well-being and career advancement of child care workers. By providing these supports, the goal is to create a more stable and qualified workforce, which is essential for delivering high-quality child care.

Certified early childhood educators play a critical role in the child care sector, and their professional development is vital for maintaining high standards of care. The federal government collaborates with provincial and territorial governments, as well as post-secondary institutions, to develop training programs and other initiatives that support the growth and development of early childhood educators.

The child care workforce is diverse, comprising workers from various cultural and linguistic backgrounds. Initiatives are in place to support their professional development and career advancement, ensuring that all child care workers have the opportunity to thrive in their roles.

By investing in the child care workforce, the federal government aims to improve the quality of care and support the development of young children across Canada. This investment not only benefits the children and families but also strengthens the overall child care system, making it more resilient and effective.

Emerging Priorities and Policy Alignment in Canadian Child Care

Indigenous and Regional Inclusion

Canada is expanding indigenous early learning initiatives and tailoring ECE programs to serve diverse and underserved communities, including in the Northwest Territories, where service delivery poses unique challenges.

Professional Growth and Workforce Development

To address staffing challenges, provinces are investing in professional learning and continuous learning opportunities. Some school boards now help administer early years programs, strengthening support networks for educators.

Improving Working Conditions

New policies aim to standardize benefits like paid statutory holidays and improve access to pensions and health coverage. These measures align with broader reforms to uplift the sector’s average wage.

Economic and National Policy Impact

High-quality child care supports economic output by enabling parents to work. Canada committed to long-term change through public funding, wage supports, and structural reforms guided by Canada-wide agreements.

Fair Compensation and Administration

Several provinces are introducing wage grids to formalize salaries. Others are exploring centralized administration to improve equity and efficiency as demand grows with more children entering care.

Insight-Driven Strategy

Recent studies offer valuable insights into educator needs, pay equity, and job satisfaction—key inputs for shaping a stronger, fairer child care system.

Key Points RECEs Should Remember

• It is legal and standard to have your base pay below the wage floor, provided CWW and PWE funding bridge the gap.
• This funding model ensures consistent, fair compensation for all RECEs.
• Wage floors will periodically rise, aligning with ongoing childcare funding updates.
• Supporting ECE well-being directly improves childcare quality, emphasizing the importance of adequate compensation and comprehensive benefits.
• Favorable working conditions, including decent pay, benefits, and professional development, are essential for attracting and retaining qualified educators in the child care sector.

By clearly understanding these structures, you can confidently navigate your career as an RECE, ensuring transparency, fairness, and professional satisfaction in the critical work you do every day.