Early Childhood Educator “Pay Rise” — What’s Really Happening

The Federal Government has announced an extension of the Worker Retention Payment program until June 2028, securing funding for a 15% above‑award wage increase for educators at participating services.

However, it is important to clarify this is not a universal pay rise for all educators. It is an extension of a grant program. Only educators employed at services that applied for and were approved under the program will continue to receive the higher wages. Educators at non‑participating centres remain on award wages.

Key Points

Extension, not award change: The 15% increase is funded through a grant, not embedded in the Children’s Services Award or Educational Services (Teachers) Award.
Coverage: More than 200,000 educators' benefit — but only those at approved services.
On‑costs included: Providers receive an extra 20% to cover payroll tax, superannuation, and leave entitlements.
Conditions: Services must pass the payment directly to workers, comply with fee growth caps, and meet child safety standards.
End date: Funding is guaranteed until 30 June 2028, but not beyond.

What Has Been Announced

Extension of funding: The Worker Retention Payment program will continue until 30 June 2028.

Coverage: Applies only to services that have applied and been approved for the grant.
Amount: Provides a 15% wage increase above award rates, phased in (10% from Dec 2024, rising to 15% from Dec 2025).
On‑costs: Eligible providers also receive an additional 20% funding for payroll on‑costs.
Conditions:
- Providers must pass the payment directly to workers.
- Fee growth caps (4.2–4.4% annually) limit how much services can raise fees.
- New compliance links tie participation to child safety standards.

What It Is Not

Not embedded in the award: This is a grant program, not a permanent change to the Children’s Services Award.
Not universal: Educators at centres that did not apply or were not approved will not receive the 15% increase. Their wages remain at award levels.
Not guaranteed beyond 2028: Future governments could choose not to renew the program.

Who Benefits

Eligible educators: Those employed at services that opted into the Worker Retention Payment.
Family Day Care & In‑Home Care: Newly eligible, but only if educators are engaged as employees (not contractors).
Non‑participating centres: Educators here remain on award wages, with no additional funding.

Why This Distinction Matters

Many headlines frame this as a “pay rise for all educators.” In reality, it is an extension of a targeted grant program.
Without embedding the increase into the award, educators in non‑participating services risk being left behind, perpetuating inequity across the sector.

Why This Matters

For educators: Provides stability and recognition for those at participating centres, but leaves gaps for others.
For families: Helps retain skilled staff, ensuring continuity of care.
For the sector: Highlights the need for systemic reform — embedding pay parity into awards rather than relying on temporary grants.

FAQ Guide

Is this a pay rise for all educators?

No. Only educators at services that opted into the Worker Retention Payment program receive the 15% above‑award increase. Others remain on award wages.

What happens if my centre didn’t apply?

Educators at non‑participating centres do not receive the grant. Their wages stay at award levels.

Does this change the award?

No. The award remains unchanged. This is a grant program layered on top of award wages.

Will fees go up for families?

Fee growth caps (around 4.2–4.4% annually) are in place to prevent providers from passing costs onto families.

Is this permanent?

No. Funding is extended until June 2028. Future governments could choose not to renew it.