Free services to access the government-funded 15% pay rise for early childhood and OSHC

Supporting the workforce to provide high quality ECEC is a priority for the Australian Government. Central to this is the need to ensure ECEC educators are valued as professionals and fairly remunerated for the critical work they do.

• The Worker Retention Payment, ceasing 30 November 2026, is an interim measure while the Fair Work Commission finalises its gender undervaluation priority awards review and the Government charts a course towards a universal ECEC system informed by the Australian Competition Consumer Commission (ACCC) and Productivity Commission (PC) reports.
• The Australian Government is committed to ensuring the cost of fair wages for ECEC workers is not passed on to families through higher fees.

• The Fair Work Commission is reviewing modern award classifications and minimum wage rates on work value grounds to remedy potential gender undervaluation, starting with 5 priority awards.
• The Children’s Service Award 2010 is one of the awards being considered.
• The Fair Work Commission has published a timeline on its website and stated an intent to have the review completed by the 2024-25 Annual Wage Review announcement, expected in the first half of 2025.

• A provider may request an alternative fee growth cap for one or more services in exceptional circumstances.
• The provider must be able to demonstrate that the standard fee growth cap would seriously impact a service’s financial viability. For example, if it would result in a reduction or drop in the service’s offerings.
• A provider can submit a request for each impacted service:
  • while completing the grant application, or
  • separately at any time.
• You will need to provide each service’s:
  • current and proposed fees schedule, including for different times and cohorts
  • financial information like current and anticipated revenue, expenditure and profit/loss information.
• The Department will process complete and accurate alternative fee growth cap requests as quickly as possible.

• The funding review process supports providers for whom the standard payment calculation method is not appropriate.
• A provider must be approved for the worker retention payment and smooth funding across services before requesting a funding review.
• The provider must operate services that:
  • have a unique staffing profile, or
  • have stand-alone jurisdiction-funded preschool rooms, or
  • are First Nations, remote/ or very remote, or
  • get the Community Child Care Fund and have a unique operating model, or
  • cannot be provided consistent and smoothed funding by the provider across a financial year.

• How to apply
  • If you meet the above criteria, contact ccshelpdesk@education.gov.au to request a funding review.
  • You will be given access to an application form in SmartyGrants. The application must be completed by a person with management or control.
  • Applicants will be asked for information about the services they operate and will need to provide supporting evidence which demonstrates their ongoing need for a funding review.
• If your application is approved
  • We will update your grant agreement.
  • You will still get your standard payment every month.
  • You will be required to submit de-identified employment data in SmartyGrants each quarter.
  • The employment data will be used to calculate your quarterly ‘top up’ if required.

• Due to privacy requirements the department is only able to response to enquiries regarding the progress of an application when that enquiry is from a person of management and control. Therefore, the Engagement Program Team is not able to provide this information. The best course of action is for the provider’s person of management and control contact the CCS helpdesk with their application number to enquire about the status of your application.

CCS Helpdesk contact information:

Phone: 1300 667 276

Email: ccshelpdesk@education.gov.au

• Engagement Program providers should use their own branding when producing materials about the WRP Engagement Program and include a text only acknowledgment about Australian Government funding. Example wording below:
  • <insert org name here> receives Australian Government funding to support the worker retention payment.
• The use of Department of Education branding or the Australian Government logo should not be used unless prior written consent has been granted.
• The Department has developed a stakeholder toolkit for ECEC providers regarding the WRP which can be accessed on our website: Worker retention payment communication toolkit - Department of Education, Australian Government.

The department is currently reviewing applications and is endeavouring to provide an outcome as soon as possible. The applicant can submit both Alternative Fee Growth Percentage Cap applications (AFGPC) and WRP applications at the same time, but in some circumstances, depending on factors such as the size of the provider and number of services, an approval for an AFGPC application is required before the WRP application can be considered and approved.

The fee growth cap is 4.4% is for the period from 8 August 2024 to 7 August 2025 and 4.2% from 8 August 2025 to 7 August 2026. If a Provider has increased their fees by more than 4.4% since 8 August 2024, they can still make an application for an Alternative Fee Growth Percentage Cap. However, an alternative fee growth percentage cap will only be approved in exceptional circumstances. As part of this application, providers must demonstrate that the standard fee growth cap would have seriously impacted the services financial viability. In this situation, this service will only become eligible for the Worker Retention Payment if their alternative fee growth percentage cap application is approved.

Community Early Learning Australia (CELA) and Community Child Care (CCC) are peak bodies representing members across community managed, not for profit, small providers and government education and care services.

CELA and CCC have been advocating for the sector for over 30 years and have negotiated this historic deal on behalf of community and small providers.  This moment is a significant milestone in recognising the valuable contribution ECEC makes to Australia. 

Through our jointly-formed Education and Workplace Relations Team, we are now working to help providers and their services to understand their options and access the 15% increase as quickly as possible. 

In December, 2024, the Federal Government committed $3.6 billion to fund a 15% increase in early childhood wages. This recognises the urgent need to address chronic workforce shortages in the early childhood sector by funding services to pay professional wages without the need to increase fees.

The funding is being delivered in the form of a grant to qualified providers, as this is the most efficient method to quickly get the funds in the pockets of employees.

More information on the ECEC Worker Retention Payment can be found at the Department’s website here.

The payment will cover eligible ECEC workers who:

work at an eligible CCS-approved Centre Based Day Care or Outside School Hours Care service that opts in to the payment, and

• are covered by either the Children’s Services Award 2010, the Educational Services (Teachers) Award 2020 or a state-based ECEC award, or
• undertake the duties included in the Children’s Services Award 2010 and the Educational  Services (Teachers) Award 2020.

This may include early childhood teachers, educators, cooks, coordinators, room leaders and support workers.

To be eligible for the Worker Retention Payment providers will need to do the following:

1. Limit fee growth to 4.4% from 8 August 2024 to 7 August 2025 and 4.2% from 8 August 2025 to 7 August 2026.

2. Engage in a workplace instrument that meets grant conditions.

3. Apply for the grant.

4. Pass on all funding to eligible workers through increased wages.

Although the applications do not close until 30 September 2026, any provider that applies before 30 June 2025 and meets the eligibility criteria will have their payments backdated to 2 December 2024.

This backdating means that even if you apply later, you can still receive the funding to pay your
staff from 2 December 2024.

Please take into consideration it may take time to establish a workplace instrument as part of the eligibility of the grant, so don’t leave this to the last minute.

Applications are now open, and grant guidelines are available at the Department website here - https://www.education.gov.au/early-childhood/workforce/wages

The first step for you is to request a no obligation, free Options Pack from the Education and Workplace Relations Team.

REQUEST OPTIONS PACK

This Options Pack details the workplace instruments available to meet this grant condition and how we can provide support, with all pathways and decisions optional by you, the provider.

Once you have requested this, you will receive ongoing updates and be able to access the team for any questions specific to you.

There is no commitment to participate in any workplace arrangement when requesting the Options Pack; it is a tool to help you understand all your options.

CELA are CCC working to expand the benefits of the federally funded pay increases to state funded preschools.

A Supported Bargaining process for 103 NSW community managed preschools is currently underway. Regular updates are provided via our member communications.

Workplace instruments are legally binding. They provide assurance that funding is being passed
on to workers through increased wages.

You must have an eligible workplace instrument to receive the funding.

A workplace instrument sets out terms and conditions of employment, like:

• pay rates
• penalties and loadings
• working hours
• leave entitlements.

Workplace instruments can be negotiated through a bargaining process.  Workplace instruments are legally binding and provide assurance that funding is being passed on to workers through increased wages.

You must have an eligible workplace instrument to receive the funding.

Some examples of workplace instruments that you could use to meet the grant conditions include:

• A workplace agreement approved by the Fair Work Commission which may be -
  • A multi-employer workplace agreement
  • A single employer enterprise agreement

• Individual Flexibility Arrangements (IFA) for all eligible staff.

These instruments need to be made in accordance with the Fair Work Act and meet the conditions set in the grant guidelines.

To be eligible for the worker retention payment, a workplace instrument must:

• include an obligation to pay workers at or above the minimum rates in the grant guidelines and in accordance with section 4.3 of the grant guidelines
• apply for the full 2 years of the payment.

When considering which workplace instrument is the best option for your service/s it’s important to consider:

• The type of service you provide,
• The numbers of eligible staff,
• The predominant form of employment of your staff (permanent/casual),
• Whether you currently have existing an workplace agreement and your current level of wages and conditions,
• The operational complexity of making the workplace instrument and any ongoing compliance requirements,
• Any costs associated with making and maintaining the workplace instrument.

The CELA workplace relations team can provide guidance as to which instrument is best suited for your service/s, but the final choice is up to you.  This decision should be based on the considerations outlined above, along with any specific requirements or conditions of your service/s.

No, The Children’s Services Award doesn’t currently reflect the minimum funded rates required under the grant guidelines, and as such are not sufficient to meet the funding conditions.

The National Long Day Care Multi- Employer Agreement is a new workplace agreement for employers and employees in the long day care sector. It has been negotiated with representatives across the sector including CCC and CELA representing community managed and small providers, and others representing private providers and large providers.

It provides a simple and straight forward way for long day care providers to comply with the requirement to have a workplace instrument to deliver funded ECEC wage increases.

For more information on the ECEC Multi-Employer Agreement: https://www.fwc.gov.au/hearings-decisions/major-cases/early-childhood-education-and-care-supported-bargaining-agreement

The Professional Childcare Standard (PCS) is an existing multi-employer agreement for community managed long day care services. Originally made in Victoria, any long day care service is eligible to join this agreement.

The PCS has supported community managed services to offer improved pay and conditions since 2008. This Agreement will be renegotiated to ensure it complies with the conditions of funding required for the Worker Retention Grant. This process is already underway, and will likely be concluded in the coming months.

If you have an existing agreement, whether it’s expired or not – it’s only eligible to be used if it contains the current pay schedule. This means it must pay at least the rates included here –
https://www.education.gov.au/early-childhood/workforce/wages/worker-retention-payment-
minimum-rates.

To remain eligible the instrument must maintain rates that are in compliance with the minimum prescribed rates throughout the funding period.

Individual Flexibility Arrangements (IFAs) are written agreements made between an employer and an individual employee to amend a term of the award or agreement that covers the employee. If you are an OSHC service or your employees are on an existing agreement, this might be the best option to use to be eligible for the grant.