(The Center Square) – Child care workers in Seattle will receive a retention bonus of up to $1,380 in the next few months as the city pays to keep the workforce sustainable that’s paid for by a tax on the city’s largest employers.
The Seattle Department of Education and Early Learning, also referred to as DEEL, announced that it will distribute the retention payments sometime next spring. DEEL has partnered with BrightSpark Early Learning Services since 2021 to deliver direct funding to child care workers.
The program has delivered $13.5 million in direct funds to child care workers in its first three years.
Last year, DEEL distributed $5.3 million to over 3,700 workers alone.
The funding stems from the city’s Jumpstart Payroll Expense Tax, which is paid by Seattle businesses with at least $8.5 million in local annual payroll. The rate the businesses pay ranges between 0.7% and 2.4% on salaries and wages paid to Seattle employees who make at least $150,000 per year.
Companies such as Amazon, Meta and Google would be subject to paying the tax.
Data from the U.S. Bureau of Labor Statistics revealed that workers in the early learning sector continue to earn one of the lowest wages in Washington, with approximately $10 less hourly than median workers.
DEEL said the payments are intended to recognize the important role of child care workers and incentivize worker retention.
The department is subject to budget cuts as the city handles a $250 million budget gap. DEEL’s proposed 2025–2026 budget sees funding drop below its current allocated budget. In 2025, the department would be allocated $150.6 million, a 4% decrease from 2024. The 2026 budget is set even lower at $100.8 million, or 33% less than 2025.
