Worker Retention Payment FAQs

The Worker Retention Payment (WRP) is a grant that provides funding to support a wage increase for all eligible Early Childhood Education and Care (ECEC) workers until 30 June 2028. 

The WRP provides a 15% increase to the Educational Services (Teachers) Award 2020 (EST Award) minimum hourly rate or the equivalent dollar amount for a Teacher already paid above the EST Award.  

The WRP provides a 15% increase to the Children’s Services Award 2010 (CS Award) minimum hourly rate or the equivalent dollar amount for workers already paid above the CS Award, prior to the gender undervaluation increases. The WRP absorbs increases to the CS Award resulting from the gender undervaluation. 

ECEC providers may apply for the worker retention payment if they: 

• Hold Child Care Subsidy (CCS) approval 
• Operate one of the following:  
  • Centre Based Day Care (CBDC) service  
  • Outside School Hours Care (OSHC) service  
  • Family Day Care (FDC) service or In Home Care (IHC) service that engages all its educators as employees  
• Engage workers through a workplace instrument that includes an obligation to pass on the WRP wage increase to workers  
• Meet fee growth caps and all other grant conditions  

Workers covered by either the Children’s Services Award 2010 or the Educational Services (Teachers) Award 2020, or who primarily undertake the duties covered in either award but are covered by a different award or instrument.

For example ECEC workers covered under the Educational Services (Schools) General Staff Award 2020 can be eligible to receive the WRP.  

Eligible workers can include: 

• Early childhood teachers 
• Educators  
• Cooks 
• Coordinators 
• Room leaders 
• Support workers 
• Trainees and apprentices. 

The WRP minimum hourly rates increased in accordance with the Annual Wage Review Decision in 2026, to maintain a 15% increase above the applicable award.  

Note: The WRP payable to a worker covered by the Children’s Services Award 2010 no longer equates to 15% of the hourly rate as the WRP absorbs the impact of the gender undervaluation increases. 

A workplace instrument is a legally enforceable document that sets out the terms and conditions of employment such as rates of pay, penalties and loading, working hours and leave entitlements.  

To be eligible for the WRP, a provider must engage workers under a legally enforceable workplace instrument that includes an obligation to pass on the WRP wage increase to workers.  

Examples of workplace instruments that services have used to access the WRP are joining the coverage of the Early Childhood Education and Care Multi-Employer Enterprise Agreement 2024-2026 (ECEC MEA), inserting a WRP clause into an Enterprise Agreement during bargaining or making an Individual Flexibility Arrangement (IFA). 

The IEU was involved in the supported bargaining for the Early Childhood Education and Care Multi-Employer Enterprise Agreement 2024-2026 (ECEC MEA), a workplace instrument that can be used to access the WRP.

Since the agreement was originally published, the Fair Work Commission have been approving variations to add employers and their employees to the agreement’s coverage. 

The ECEC MEA does not cover employees working in:

• OHSC
• vacation care
• adjunct care
• a stand-alone preschool or kindergarten.  

An IFA is a written agreement between an individual employee and their employer to vary the effect of certain clauses in their award or registered agreement.  

As many existing enterprise agreements do not include a clause relating to the WRP, an IFA can be used to pass on the WRP without adjusting an employee’s existing rights and entitlements.   

For workers covered under the Educational Services (Teachers) Award 2020 or the Children’s Services Award 2010, an IFA can be used as a workplace instrument to apply for the WRP.  

Click here to download our IFA fact sheet.

Yes, noting if the enterprise agreement does not include an obligation to pass on the WRP wage increase, the IEU have a template IFA for single enterprise agreements and multi-enterprise agreements that has been approved by the Department of Education. 

Please contact ececwrp@ieu.asn.au to discuss the pathways available to independent schools developing a workplace instrument for the WRP application.  

In 2025 the Fair Work Commission reviewed the Children’s Services Award 2010 (CS Award) to examine if the classifications had been the subject of gender-based undervaluation.

The decision on 10 December 2025 set out an increase for most classifications under the CS Award, as well as introducing a simplified classification structure. The classification changes and the first increase to award rates came into effect on 1 March 2026.

No, the WRP payable to workers covered by the Children’s Services Award 2010 (CS Award) no longer equates to 15% of the hourly rate due to the gender undervaluation increases to the CS Award.  

However, the WRP funding a provider receives doesn’t change, this is because the WRP absorbs the increases to the CS Award resulting from the gender undervaluation.  

A provider must not increase their Service fees by more than: 

• 4.4% in the 12 months from 8 August 2024 to 7 August 2025, 4.5% from 8 August 2025 to 7 August 2026, and 5.8% from 8 August 2026 to 7 August 2027. 

Or  

• 8.6% in the 24 months from 8 August 2024 to 7 August 2026 (and by no more than 4.2% from 8 August 2025 to 7 August 2026), and 5.8% from 8 August 2026 to 7 August 2027 

A service that wishes to join the program must not increase their fees by more than: 

• 5.8% between 17 June 2026 and 7 August 2027.

Yes. A provider can submit an alternate fee growth (AFG) cap which requires information that demonstrates the restriction on service fee growth will seriously impact the financial viability of the service.

Yes, providers can apply for an alternate fee growth (AFG) cap as part of their initial grant application or subsequently by submitting a grant agreement variation request form.  

Funding is calculated based on the labour costs for the monthly charged hours of care provided by a service in the Child Care Subsidy (CCS) system. The funding formula has variations to account for differences in costs between different service and operating types. The WRP funding is adjusted to account for seasonality across the year.  

The WRP funding is paid in arrears every 4 weeks through the Child Care Subsidy (CCS) system. 

Yes, once grant funds have first been used to supplement wages for eligible ECEC workers, the grant funding can be used to pay eligible on costs including superannuation contributions, employee entitlements, leave loading, workers’ compensation insurance and payroll tax.  

Yes, labour costs are inclusive of salary-based allowances. For example, the directors allowance and the educational leader’s allowance in the applicable award.

A provider can contact ccshelpdesk@education.gov.au to request a funding review application form.  

The application asks for evidence that the standard calculation does not provide sufficient funding to cover the costs of the wage increase plus a minimum 20% contribution towards eligible on-costs. As well as evidence of total paid staff hours and applicable award classifications of each eligible worker over a nominated period.  

Not currently. The opportunity to apply for one-off funding towards accrued historical leave liabilities closed on 30 June 2025.