The early childhood education and Care (ECEC) workforce will receive a 15% wage increase over 2 years, funded by the Australian Government.

The wage increase is distributed through a Worker Retention Payment. Providers opt-in by applying for the payment. The payment will be issued to eligible providers through a grant agreement. Providers must pass the payment on to eligible ECEC workers.

Understanding Workplace Instruments

Providers must engage through a workplace instrument that meets grant conditions to be eligible for the worker retention payment. 

The Department of Education have information and resources to help you navigate this process. 

What is a workplace instrument?

Workplace instruments are defined in the Fair Work Act. They are legally enforceable and set out the terms and conditions of employment, like:

• pay rates
• penalties and loadings
• working hours
• leave entitlements

Some examples of workplace instruments include, but are not limited to:

• single- or multi-enterprise agreements
• individual flexibility arrangements
• state industrial instruments

Further resources:

• Understanding employee pay and entitlements
• Understanding enterprise agreements
• Understanding bargaining
• Fair Work Commission (FWC) Online Learning Portal

Funding

Payment will be made every 4 weeks in arrears to approved providers who meet eligibility criteria. The payment will support a wage increase of 15% over 2 years including:

• 10% on top of the current national award rates in the first year
• an additional 5% in the second year.

The payment is calculated on the current national award rates. These were updated on 1 July 2024 following the Fair Work Commission’s annual wage review.

Eligibility

To be eligible, providers must:

• be approved for Child Care Subsidy (CCS)
• operate Centre Based Day Care (CBDC) or Outside School Hours Care (OSHC) services
• engage workers through a workplace instrument that meets grant conditions
• meet the grant conditions and reporting requirements outlined below.

The payment will cover eligible ECEC workers who:

• work at an eligible CCS-approved CBDC or OSHC service that opts in to the payment, and
• are covered by either the Children’s Services Award 2010 or the Educational Services (Teachers) Award 2020, or
• primarily undertake the duties covered in either of these awards but are covered by a different award or instrument, like a state industrial instrument.

This may include early childhood teachers, educators, cooks, coordinators, room leaders and support workers.

How to apply

Begin by reading and understanding the grant guidelines. This will detail the important things to know before you apply such as eligibility requirements, grant conditions and reporting requirements.

Download the Grant Guidelines here

Read this guidance before applying for the worker retention payment.

For assistance, contact the Child Care Subsidy Provider Helpdesk: ccshelpdesk@education.gov.au

More information

ACA Victoria members can access further resources in the Member Portal:

• Attend ACA national member update webinars
• Expert guidance to help you determine whether to apply for the grant
• Simple calculator tools to help determine your cost of implementing the pay rise
• How-to video on completing a grant application
• Access free templates for Individual Flexibility Arrangement (IFAs) for your staff

Not a member with ACA Victoria?

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Call us on 03 9532 2017 to find out more.