The Department has released an end‑of‑year update on the Worker Retention Payment, including important information about the gender‑based undervaluation review, payment processing, and deadlines for backdated funding reviews. Services currently participating or considering applying are encouraged to review the details below.
Gender‑Based Undervaluation Review: What the Decision Means for Services
On 10 December 2025, the Expert Panel for Pay Equity in the Care and Community Sector announced its decision on the Children’s Services Award 2010, with changes taking effect from 1 March 2026.
The Worker Retention Payment program has been designed to absorb the impact of this award increase for the life of the program. As each classification under the Children’s Services Award will receive an increase lower than the retention payment amount, the above‑award amount providers must pay will reduce by the same value as the award increase.
This ensures the retention payment continues to provide meaningful support without duplication or overpayment.
The decision does not affect the Educational Services (Teachers) Award 2020.
Eligible providers who have not yet applied for the Worker Retention Payment may still do so.
For more information on the award review, visit the Fair Work Commission website.
Payments Processed for November Period
Worker retention payments for the period 3 to 30 November 2025 have now been processed.
- Payments were processed on 15 December 2025.
- This date reflects processing, not necessarily the date funds will appear in your account.
- Payments are made at the service level through the Child Care Subsidy System, using the same bank account as CCS payments.
Deadline Approaching: Backdated Funding Review Requests
Services whose circumstances do not align with the standard payment calculation may request a funding review.
To receive top‑up payments backdated to the date you first became eligible, you must:
- Contact the CCS Provider Helpdesk before it closes at 12:30 pm AEDT on 24 December 2025
- Request a funding review application form
- Submit the completed form by 31 December 2025
Funding review requests submitted in 2026 will still be accepted, but backdating will only apply to the start of the previous reporting period.
Let Your Community Know You’re Participating
Services approved for the Worker Retention Payment can use the official communication toolkit to inform families and their community. Materials may be used once a grant agreement has been finalised.
Thinking of Applying?
As the sector moves into a new year and with the priority awards review decision now confirmed, eligible services that have not yet joined the program are encouraged to apply. Guidance and resources are available to support providers through the application process.
For more information: Workers Retention Payment
Recent alerts from TEQSA (Tertiary Education Quality and Standards Agency) and ASQA (Australian Skills Quality Authority) have raised concerns about students being funnelled into childcare