For educators on the WRG, the 15% is locked to the 1 Dec 2025 rate. You’re still getting 15% above what the award was in Dec 2025, inclusive of the 4.75% Annual Wage Review. But you don’t get 15% on top of the new award rates as of 1st July 2026. Fair Work is now lifting the minimum pay rate in the Awards to catch up.
You’re still 15% above 2025 rates + AWR, which means around 10.3% above the July 2026 award rate.
Here’s what’s really happening to your pay, in plain English. Minimum worker retention payment rates will be set at 15% above the 1 December 2025 award rate plus the increase of the Annual Wage Review.
What that means from July 2026:
- Take what the award rate was on 1 Dec 2025
- Add 4.75% for the Annual Wage Review
- Add 15% on top of that
The Fair Work gender equity rises from 5% in Mar + 5% in June 2026 are absorbed, they lift the minimum rate in the award, so the government top-up shrinks.
From our understanding, by July 2026, WRG educators are ∼10.3% ahead of non-WRG educators, not 15%. Fair Work lifted the award by 10% for gender equity between Dec 2025 and June 2026, which was absorbed by the grant. Future 5% increases will reduce the gap further.
The Details
What Is the “15% Pay Rise”?
It’s a government grant called the Worker Retention Payment. It lets your service pay you above the award without hiking fees too much.
Timeline:
- 2 Dec 2024 → 30 Nov 2025: You get 10% above your award rate
- 1 Dec 2025 → 30 June 2028: You get 15% above your 1 December 2025 award rate
- Ends: 30 June 2028 after being extended on 17 June 2026
Only if: Your service signed up + you’re an eligible worker under Children’s Services Award or Educational Services (Teachers) Award.
There Are 3 Different Pay Increases Happening
People mix these up. They’re separate:
- Worker Retention Payment: 10% then 15% funded by the government grant
- Gender Equity Increases: Fair Work lifting the Children’s Services Award base rates for undervaluation. Dates: 1 Mar 2026, 30 June 2026, 30 June 2027, 30 June 2028, 30 June 2029
- Annual Wage Review: Normal cost-of-living increase each 1 July. 1 July 2026 = 4.75%
Teachers' vs Educators
TEACHERS - Educational Services (Teachers) Award. You get everything. Nothing is absorbed.
- 1 July 2026: Award goes up 4.75%
- Plus: Grant adds 15% on top of that new rate
- Total: ∼20.46% above the old award
Example:
Award was $40/hr → July 1 = $41.90 → Add 15% = $48.19/hr
EDUCATORS - Children’s Services Award. This is where “absorption” happens.
The grant uses the same formula: 1 Dec 2025 rate x 1.0475 x 1.15. The Fair Work gender equity rises from Mar + June 2026 is absorbed.
10% Ahead at 1 July 2026, not 15%
Example: Level 5 Advanced Educator
Non-WRG Service - Level 5 Advanced Educator
- 1 December 2025: $31.84/hr
- 1 March 2026: $33.43/hr ($31.84 + 5% gender equity)
- 30 June 2026: $34.91/hr ($33.43 + 5% gender equity, rounded)
- 01 July 2026: $36.57/hr ($34.91 x 1.0475 for 4.75% AWR)
Worker Retention Grant Pays - Level 5 Advanced Educator
- 1 December 2025: $31.84 x 1.0475 x 1.15 = $38.36/hr - Gap: 20.5%
- 1 March 2026: Still $38.36/hr - Gap vs $33.43 = 14.7%
- 30 June 2026: Still $38.36/hr - Gap vs $34.91 = 9.9%
- 01 July 2026: $40.33/hr - Gap vs $36.57 = 10.3%
Note:
- The WRG was based on your Dec 2025 rate plus 4.75% AWR plus 15%.
- Fair Work then added two 5% gender equity increases to the Award in March and June 2026.
- Those increases are absorbed into your WRG, so your grant shrinks and you’re only ∼10.3% ahead by July 2026, not 15%.
Common Myths Busted
Myth: “We get 15% on top of the new pay rates”
- No — not for Children’s Services Award educators. The 15% is locked to the 1 Dec 2025 rate. If it was 15% on top of the 01 July 2026 rate, you’d get $37.34/hr in the table above. You actually get $34.35/hr. The Mar + June 2026 FWC increases are absorbed. EST Award Teachers DO get 15% on top of new rates.
Myth: “We only get 5% for 6 months from Nov 2026”
- Reality: You got 10% from Dec 2024, then 15% from Dec 2025. From our understanding, the grant top-up is 10.3% by July 2026, and will shrink to ∼5-6% after the next increase, but your total pay never went backwards. You also got the 4.75% AWR included in your 15%.
Myth: “From July 2026, we’re only 10.3% ahead”
- Correct if you compare WRG vs non-WRG payslips in July 2026. But WRG staff are still 15% above Dec 2025 rates, inclusive of AWR. Both groups got the FWC increases.
The Takeaway
- EST Award Teachers: 15% + 4.75% AWR. No absorption. You win.
- CS Award Educators: 15% above Dec 2025 award, inclusive of 4.75% AWR. FWC gender equity rises are absorbed. You’re still ahead, but the gap vs non-WRG shrinks to ∼10% by July 2026.
The grant ends 30 June 2028. After that, you keep whatever Fair Work has built into the award. The union wants the 15% made permanent.
Why the Media Keeps Saying “Educators Won 15% Pay Rise”
Because that’s what the government announced, and it was true on 1 Dec 2025.
The policy name is literally “15% wage increase”. Politicians aren’t going to say “15% above the December 2025 award rate subject to absorption of gender-based undervaluation adjustments” on the 6pm news.
For teachers under the Educational Services Teachers Award, the headline is correct. For educators under the Children's Service's Award, it was correct on 1 Dec 2025. By July 2026 it’s technically “10% above current award” but that’s not a good soundbite.
The details:
- It’s the policy name: Budget papers say “15% wage increase for ECEC”. Politicians use that line in every press release
- It WAS 15% above current award: From Dec 2025 to Feb 2026, you really were 15% ahead of the award
- It’s still true for teachers: Teachers get 15% on top of the new July 2026 rate. No absorption for them
- “15% above Dec 2025 rates subject to absorption” doesn’t fit in a headline
By July 2026, the headline doesn’t match payslips for Children’s Services Award staff anymore. That’s why educators feel confused.
For more information and details: Worker Retention Payment Minimum Rates - Department of Education, Australian Government
Correction Notice - 30 June 2026
This article originally stated WRG educators were ∼6% ahead by July 2026. Based on the UWU Big Steps July 2026 table, we have updated that figure to ∼10%.
From our understanding, the gap at 1 July 2026 is ∼10% for most educators. The 5-6% gap will apply after future gender equity increases.
Further Reading
The Truth About the 15% Grant
Australian Government Supports 15% Wage Increase Over 2 Years
Guidelines For 15% Wage Increase
Understanding the Wage Increase and Retention Payment
The Temporary Grant Mislabelled as a Pay Rise
Children’s Services Award to Receive 5% Gender Equity Increase + 4.75% Award Rise From July 2026
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