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Q: What Happens to Our Pay When the Grant Ends?

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Q: What Happens to Our Pay When the Grant Ends?

We know many of you are feeling unsure about what will happen to your pay once the Wage Increase Grant ends. This message is here to give you a clear, honest explanation so you know exactly what to expect.

1. The Grant Is Temporary Funding

The grant you are currently receiving is not part of the award.
It’s extra money provided by government funding to boost educator wages for a set period of time.

Because it’s temporary, the top‑up amount will end when the grant ends.

This part is expected and applies to all services receiving the grant.

2. Your Pay Will NOT Fall Below The Award

Even after the grant ends, your pay cannot drop below:

  • the new award minimum, or
  • the retained minimum rate (if you are in one of the protected classifications)

This is a legal requirement.

You will always be paid at least the correct award rate.

3. But Yes—Your Total Pay May Be Lower Than What You Receive With The Grant

Right now, your pay includes:

  • your award rate, plus
  • the grant top-up

When the grant ends, the top‑up stops.

This means your total pay may be lower than what you’re used to receiving with the grant, even though your award rate itself is not being reduced.

This is not a “pay cut” in the legal sense; it’s simply the end of temporary funding, but we understand it can still feel like a loss.

4. The New Award Rates May Be Lower Than Your Current Grant‑Boosted Rate

This is the part causing the most worry.

The new award structure coming in 2026 sets new minimum rates. These new award rates may be lower than what you currently earn with the grant included.

This does not mean your award rate is being reduced. It means the grant temporarily lifted your pay above the award.

When the grant ends, your pay returns to the award minimum unless the service chooses to pay above‑award rates.

5. What Your Service Can Choose To Do

When the grant ends, services have three options:

  • Pay the new award minimum (the legal requirement)
  • Continue paying above‑award rates using the service’s own budget
  • Create a new above‑award structure to support retention and stability

Each service will make decisions based on sustainability, staffing, and funding.

6. What We Want You To Know

You will not be paid less than the award.
You will not go backwards below the legal minimum.
But the grant top-up is temporary, and unless the service continues it, your total pay may return to the award rate once the grant ends.

We know this can feel unsettling, and we’re committed to keeping communication open, honest, and supportive as we move through these changes together.

Wage Grant Q&A for Educators

Q1. Why am I being paid more right now?

You are currently receiving a temporary wage top‑up through the government’s Wage Increase Grant.
This top‑up is not part of the award; it’s additional funding designed to boost educator wages for a set period.

Q2. Will my pay go down when the grant ends?

Your award rate will not go down, but the grant top‑up will stop.
This means your total pay may be lower than what you’re receiving now with the grant included.

Q3. Does this mean I’m getting a pay cut?

Not in the legal sense. Your award rate stays the same or increases under the new award structure. What ends is the temporary extra money from the grant. We understand it can still feel like a pay cut, and that feeling is valid.

Q4. Will I ever be paid less than the award?

No.
You will never be paid below the award minimum.
This is a legal requirement for all services.

Q5. What if the new award rate is lower than what I earn now with the grant?

This is expected.
The grant temporarily lifted wages above the award.
When the grant ends, your pay returns to the award minimum, unless the service chooses to continue paying above‑award rates.

Q6. Does the “retained minimum rates” rule protect my grant‑boosted pay?

No.
Retained minimum rates only protect old award minimums, not grant‑boosted wages.
The grant top-up is not included in any protected rate.

Q7. Can the service choose to keep paying the higher rate after the grant ends?

Yes.
Services can choose to:

  • continue paying above‑award rates
  • create a new above‑award structure
  • or return to the award minimum

This depends on each service’s budget and sustainability.

Q8. Will the new award rates be higher than the current grant‑boosted rates?

In most cases, no.
The grant temporarily pushed wages higher than the award.
The new award rates may still be lower than your current grant‑boosted pay.

Q9. Why didn’t the award increase to match the grant?

Because the grant and the award are two separate systems:

  • The award is set by the Fair Work Commission.
  • The grant is temporary government funding.

One does not automatically change the other.

Q10. What is the service doing to prepare for the end of the grant?

Your service will review:

  • staffing needs
  • budget sustainability
  • award changes
  • retention priorities

And will communicate clearly about what pay structure will apply once the grant ends.

Q11. What should I do if I’m worried about my future pay?

It’s completely understandable to feel uncertain.
If you’d like to talk through your situation, your leadership team is here to support you and answer questions openly.

Further Reading 

Increase Pay Rates and New Classification Structure For Cert 3 and Diploma Qualified Educators
Wage Increases Over Five Years For Certificate 3 and Diploma-Qualified Educators
Cooks in Children’s Services: New Award Rules and What They Mean
Provisional FWC Decision Targets Gender Pay Discrepancies Under the Children’s Services Award

References:
Australian Government Wage Increase Grant Guidelines (2024–2025)
Wage Increase Grant Guidelines
Fair Work Act 2009
Children’s Services Award

Created On December 15, 2025 Last modified on Monday, December 15, 2025
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