From 1 March 2026, the Fair Work Commission has officially increased wages under the Children’s Services Award. This decision came after a review into gender‑based undervaluation, meaning educators’ work is now recognised as more valuable and fairly paid. At the same time, the Worker Retention Payment (WRP) program is still running. It was introduced to make sure services can afford to pay staff more and to encourage educators to stay in the sector.
How the Two Work Together
- Award Increase: Sets the new minimum pay rates for all educators.
- Retention Payment: Provides government funding to services so they can meet those higher wages without carrying the full cost themselves.
In practice, this means:
- Educators see the wage rise in their pay packets.
- Services receive WRP funding to cover the increase (plus on‑costs like superannuation).
- The WRP is not a “bonus” on top of wages—it’s the mechanism that ensures the new Award rates are affordable and sustainable.
Why This Matters
- Security: Educators can feel confident that the wage increase is backed by government funding.
- Retention: The program is designed to keep educators in the sector by making pay fairer and more competitive.
- Recognition: This is a formal acknowledgment of the professional value of early childhood education.
Your pay rise is here to stay, and the Worker Retention Payment is how the government is helping services deliver it. It’s not an extra payment—it’s the funding stream that makes sure the new Award wages are possible.
What Happens When the Retention Payment Stops?
The Big Picture
The Worker Retention Payment was always designed as a temporary program. It runs until November 2026 and helps services afford the new, higher wages set under the Children’s Services Award.
When the program finishes, the funding support ends—but the wage increase itself does not.
What Educators Need to Know
-
Your pay stays the same:
The Fair Work Commission’s wage increase is permanent. Even after the WRP ends, your pay will not go down. -
Funding stops for services:
Services will no longer receive government top‑up payments to cover the higher wages. They will need to budget for the full cost themselves. -
Possible service changes:
Some providers may adjust fees, restructure budgets, or seek other funding sources to sustain the higher wages.
Why This Matters
- Security for educators: You can feel confident that your pay rise is locked in.
- Transition for services: The WRP was a bridge to help services adapt. Now they must carry the responsibility of funding wages long-term.
- Sector recognition: The permanent wage increase reflects the value of early childhood education and care.
The Retention Payment ends in November 2026, but the wage increase remains. Educators keep their improved pay, while services take on the responsibility of funding it without government subsidy.
Further Reading
Award Review, Payments Processed & Key Deadlines
Q: What Happens to Our Pay When the Grant Ends?
Guidelines For 15% Wage Increase
The Truth About the 15% Grant
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