For some long-serving staff, the new Award minimum after the 1 July 2026 increase is still lower than the Award minimum, they were entitled to on 28 February 2026. To stop these staff from taking a pay cut, FWC introduced “Retained Minimum Rates.”
When the Fair Work Commission re-wrote the Children’s Services Award on 1 March 2026, several classifications were deleted or merged. The 1 July 2026 Annual Wage Review increase of 4.75% was then applied to the new structure.
What are Retained Minimum Rates?
If the Award minimum rate you were entitled to on 28 February 2026 is higher than the new Award minimum for your classification after 1 July 2026, you keep your old Award rate.
Important: This is not because your employer was paying “above Award.” It’s because the previous Award minimum itself was higher than the new Level minimum. You are entitled to keep the previous Award rate until the new Award rate catches up and overtakes it.
Who gets a Retained Rate from 1 July 2026?
Based on the MA000120 Pay Guide Effective 01/07/2026:
| Level 3.3 – Qualified Educator | $33.10/hr | Level 3 – Qualified Educator | $32.47/hr | Previous Award rate higher |
|---|---|---|---|---|
| Director 6.4 | $47.20/hr | Level 8 – Director | $46.12/hr | Previous Award rate higher |
| Director 6.5 | $47.86/hr | Level 8 – Director | $46.12/hr | Previous Award rate higher |
| Director 6.7 | $48.52/hr | Level 8 – Director | $46.12/hr | Previous Award rate higher |
| Director 6.8 | $49.17/hr | Level 8 – Director | $46.12/hr | Previous Award rate higher |
| Director 6.9 | $49.83/hr | Level 8 – Director | $46.12/hr |
Previous Award rate higher |
How Retained Rates Work for Directors
Before 1 March 2026, “Director” had 9 sub-levels 6.1–6.9 based on centre size and qualifications. From 1 March 2026, all Directors collapsed into Level 8 – Director.
The new Level 8 rate from 1 July 2026 is $46.12/hr or $1,752.56/week.
The problem: Directors 6.4 to 6.9 were already paid $47.20–$49.83/hr on 28 Feb 2026. If they moved to $46.12/hr, they’d take a pay cut of $1.08–$3.71/hr.
The fix: If you were Director 6.4, 6.5, 6.7, 6.8 or 6.9 on 28 Feb 2026, you keep your old rate.
Example: Director 6.9
- 28 Feb 2026: You’re Director 6.9 on $49.83/hr
- 1 Mar 2026: You become Level 8. New minimum is $44.03/hr. You keep $49.83/hr
- 1 July 2026: Level 8 rises to $46.12/hr with 4.75% AWR. Still below your $49.83/hr. You stay on $49.83/hr
- Future years: You won’t get AWR increases until Level 8 minimum exceeds $49.83/hr. Then you re-join the Award increases
Important for Directors
- It’s personal — Only applies if you were 6.4–6.9 on 28 Feb 2026. New Directors hired from 1 Mar 2026 get $46.12/hr
- No % increases until caught up — You skip the 4.75% AWR on 1 July 2026 because you’re above minimum
- WRP still applies — If your service gets the 10% Workforce Retention Payment, it’s calculated on your actual retained rate. $49.83/hr + 10% = $54.81/hr
- Duties don’t change — You’re still performing Director duties under Level 8
How Retained Rates Work for Level 3.3 Educators
- Old Level 3.3: ∼$33.10/hr on 28 Feb 2026
- New Level 3 from 1 July 2026: $32.47/hr
Because $33.10 > $32.47, you keep $33.10/hr. You won’t receive the 4.75% AWR on 1 July 2026 until the Level 3 minimum rises above $33.10/hr in future years.
Who Doesn’t Need a Retained Rate?
Ex-Level 4A Room Leaders — You moved to Level 6. New rate is $38.25/hr from 1 July 2026, which is higher than the old 4A rate of ∼$34.20/hr. You got a pay rise, not a cut. No retained rate needed.
Minimum Rates protect long-serving Level 3.3 educators and senior Directors 6.4–6.9 from pay cuts. You keep your 28 Feb 2026 rate until the new Level 3 or Level 8 Award minimum catches up.
Further Reading
Childcare Wages In Australia
Understanding the Wage Increase and Retention Payment
Diploma Qualified Educator Wages In Early Childhood Services
References:
- Fair Work Commission FWCFB 150 – Gender-based undervaluation decision, 1 March 2026 restructure
- Children’s Services Award MA000120, Schedule B, Clause B.2 – Retained minimum rates
- Fair Work Ombudsman Pay Guide MA000120, Effective 01/07/2026
- Fair Work Ombudsman, Changes to the Children’s Services Award from 1 March 2026 fact sheet
- Fair Work Act 2009 (Cth) s.206 – No reduction in take-home pay[2024]
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