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Free expert guidance on the worker retention payment

In December 2024, the Federal Government committed $3.6 billion to fund a 15% pay increase for early childhood education and care workers. The Worker Retention Payment delivers this funding as a grant to eligible providers. 

CELA and It Takes a Village (ITAV) have been funded to support services through this process. Together, we formed the Education and Care Workplace Relations Team. 

Following months of advocacy, Community Early Learning Australia (CELA) and It Takes a Village (ITAV) were funded to support services to apply for the Worker Retention Payment, including accessing an eligible workplace instrument. 

CELA and ITAV formed the Education and Care Workplace Relations Team. The Team has been working with providers to inform, educate and guide them through the process.

Eligible services can access information and support from our Workplace Relations Team for free, including: 

  • Guidance on Individual Flexibility Arrangements (IFAs) to meet the grant requirements 

  • Resources and self-service materials to understand the Worker Retention Payment 

  • Support to apply for the Worker Retention Payment 

Before contacting us, we encourage you to review the self-service resources below. This will help us assist you more quickly.

You can reach one of our sector specialists by email at adminwrt@cela.org.au or adminwrs@itav.org.au.

GENDER-BASED UNDERVALUATION DECISION BROCHURE

Resources

Use the resources below to find answers to many questions about the Worker Retention Payment and the Gender Undervaluation Decision. Each resource is written to stand alone — share with your payroll team, HR, board, or committee as needed.

Key Department of Education links and Resources 

Grant Home Page - https://www.education.gov.au/early-childhood/providers/workforce/wages  

Pay Rates - https://www.education.gov.au/early-childhood/providers/workforce/wages/minimum-rates  

Guidelines ECEC Worker Retention Payment Guidelines - Published 14 April 2026 

Worker Retention Payment — Grant Guidelines and Updates 

If you’re already familiar with the guidelines, start with the update to see what has changed. 

ECEC Worker Retention Payment Guidelines - Published 14 April 2026 

Changes to Worker Retention Payment Guidelines - Published 14 April 2026 

December 2025 Worker Retention Payment — Pay Rate Reference Sheets 

These pay rate sheets apply to the additional 5% WRP increase from 1 December 2025. Download the sheet that matches your service's workplace instrument. 

Document name 

Use when you are on... 

Children's Services Award (CSA) Pay Rates — from 1 December 2025 

CSA or MEA 

Educational Services (Teachers) Award Pay Rates — from 1 December 2025 

ESTA or MEA 

Multi-Employer Agreement (MEA) Allowances — from 1 December 2025 

MEA 

PCS Educator Pay Rates + WRP — from 1 December 2025 

PCS (educators) 

PCS Teacher Pay Rates + WRP — from 1 December 2025 

PCS (teachers) 

PCS Allowances + WRP — from 1 December 2025 

PCS (allowances) 

 

Gender Undervaluation Decision 

The Fair Work Commission's Gender Undervaluation Decision affects award classifications and minimum wage rates across the sector. These staged resources explain what the decision means for your service and your staff. 

Resource list — For Services 

For services: 

  • Stage 1 | Start here – What this decision means for services 

  • Stage 2 | The new classification structure 

  • Stage 3 | New minimum pay rates and phasing 

  • Stage 4 | Interaction with the Worker Retention Payment, enterprise agreements and IFAs 

  • Stage 5 | Next steps for applying the changes in practice 

Resource list — For Employees 

For employees: 

  1. Stage 1 | What this decision means for employees 

  1. Stage 2 | The new classification structure 

  1. Stage 3 | New minimum pay rates and phasing 

 

Access a workplace instrument

To be eligible for the Worker Retention Payment, your service must be covered by an eligible workplace instrument. The Workplace Relations Team currently supports services to access Individual Flexibility Arrangements (IFAs).

Individual Flexibility Arrangements (IFAs) 

Individual Flexibility Arrangements are written agreements made between an employer and an individual employee. They amend a term of the award or agreement that covers the employee. 

IFAs are suitable for OSHC services and services with existing enterprise agreements. To receive an IFA pack, email adminwrt@cela.org.au 

Our IFA pack includes: 

  • Approved templates for Children's Services Award staff including trainees 

  • Approved templates for Educational Services (Teachers) Award staff 

  • Detailed step-by-step instructions on how to make IFAs 

How to find out more

Contact our Education and Care Workplace Relations Team: 

Email: adminwrt@cela.org.au or adminwrs@itav.org.au 

For more information on the Worker Retention Payment, visit the Australian Government Department of Education website or contact the CCS Helpdesk on 1300 667 276 or ccshelpdesk@education.gov.au.

Commonly asked questions

What is the ECEC Multi Employer Agreement (MEA)?

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 

What is the Professional Community Standard Professional Childcare Standard Agreement (PCS)?

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. 

What happens after 30 November 2026?

Supporting the workforce to provide high quality early childhood education and care is a priority for the Australian Government. Central to this is ensuring 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. 

  • The Australian Government is committed to ensuring the cost of fair wages for ECEC workers is not passed on to families through higher fees. 

Can my service request an alternative fee growth cap?

A provider may request an alternative fee growth cap for one or more services in exceptional circumstances. 

  • The provider must demonstrate that the standard fee growth cap would seriously impact a service's financial viability. 

  • 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 and financial information including current and anticipated revenue, expenditure and profit/loss. 

The Department will process complete and accurate alternative fee growth cap requests as quickly as possible. 

Is my service eligible for a funding review, and if so, how do I apply?

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 

  • receive 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 

To apply, contact ccshelpdesk@education.gov.au to request a funding review. You will be given access to an application form in SmartyGrants, to be completed by a person with management or control. 

What if a provider increases their fees before making an alternative fee growth cap application?

The fee growth cap is 4.4% 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 cap. However, approval is only granted in exceptional circumstances where the standard fee growth cap would have seriously impacted financial viability. 

As of 1 December 2025 services/providers who were previously excluded from applying for the grant can now do so provided they meet the following conditions: 

  • Fees were/are increased no more than 8.6% in total for the two-year grant period, and; 

  • Fees are increased no more than 4.2% for 2025/2026 

Services can now qualify if: 

  • your total fee increase is no more than 8.6% over the two-year period from 8 August 2024 to 7 August 2026, and 

  • your fee increase is no more than 4.2% from 8 August 2025 to 7 August 2026.  

Providers can apply for funding for these newly eligible services from 1 December 2025. 

**Please note: these services will not receive funding for the first year of the program.

Become a CELA member

Our membership packages offer vital support to new providers and beyond, with access to resources, publications, events and expert phone support.

We’re your voice for advocacy and a vital channel for training and information, delivering up-to-the minute breaking news, updates and analysis on regulations, policies and general running of successful ECE services, plus professional development, consultancy and management support.

We’ve been a trusted source of knowledge and support for early education organisations across Australia for over 46 years.

Disclaimer

Please note: The information contained here is general information only and is not a substitute for legal advice. CCC and CELA do not accept liability for any action taken based on information provided in this pack or for any loss as a result of reliance on this information.

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Have a question that isn't covered above? Get in touch with one of our sector specialists.

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