The Australian Government has unveiled a transformative initiative to strengthen the early childhood education and care (ECEC) workforce—the Worker Retention Payment (WRP). This bold program directly responds to the challenges of attracting and retaining skilled professionals in the sector, ensuring they are recognised and rewarded for their essential contribution to society.
By delivering a significant wage increase over two years, the WRP reflects the government’s commitment to building a robust, sustainable ECEC workforce that nurtures Australia’s youngest minds and supports families and communities nationwide.
What is the Worker Retention Payment?
The WRP is designed to boost wages for workers employed under two key modern awards:
- Children’s Services Award 2010 – for educators
- Educational Services (Teachers) Award 2020 – for early childhood teachers
Through this initiative, eligible workers will receive a phased wage increase:
- Year 1: A 10% increase on top of the current national award rate.
- Year 2: A further 5% increase, resulting in a total 15% pay rise over two years.
This structured approach ensures the increases are both sustainable and impactful, fostering job satisfaction and long-term retention.
How does it work?
Providers opt in by applying for the payment, which is distributed through the Child Care Subsidy System. These funds are exclusively designated for wage increases, ensuring that the benefits flow directly to the workers who play a pivotal role in shaping children’s futures.
Key requirements for providers
Participation in the program comes with clear conditions designed to prioritise fairness and accountability:
1. Fee growth limitation
Providers must cap annual fee increases at:
- 4.4% (August 2024 – August 2025)
- 4.2% (August 2025 – August 2026)
2. Workplace agreements
Workers must be employed under agreements that meet specific grant conditions, such as enterprise agreements or individual flexibility arrangements, which:
- Guarantee wages at or above the minimum rates set by the program.
- Remain in effect for the two-year duration of the payment.
3. Direct allocation to workers
Every dollar received through the WRP must go directly to eligible employees in the form of increased wages.
These requirements ensure that the funding delivers real benefits to workers without imposing undue financial pressure on families.
Implementation timeline
The program is already in motion, offering providers ample time to apply and benefit from the initiative:
1. December 2024: Early payments begin for providers who have applied by 11 November 2024.
2. January 2025 to December 2026: Regular payments are issued every four weeks, covering eligible work from 2 December 2024.
3. Providers applying by 30 June 2025 with valid agreements may have payments backdated to the program’s start date.
Why this initiative matters
The Worker Retention Payment goes beyond financial support, it’s a strategic investment in the ECEC workforce and the future of early education in Australia.
1. Recognising contributions
It highlights the critical role of ECEC workers in fostering the growth and development of young children.
2. Attracting and retaining talent
Competitive wages make the sector more appealing to new talent while encouraging existing workers to stay.
3. Improving care quality
A motivated, fairly compensated workforce directly enhances the quality of care and education for children.
4. Supporting workforce participation
Strengthening the ECEC sector enables more parents, particularly women, to pursue meaningful careers.
An inclusive conversation
Recognising the diversity of the ECEC landscape, the government is engaging with the Family Day Care and In-Home Care sectors to explore ways of extending this critical support. This inclusive approach ensures that all workers in the field benefit from the program’s vision.
The Worker Retention Payment represents a landmark investment in the future of early childhood education and care. By prioritising fair compensation, supporting workforce retention, and enhancing the sector’s sustainability, the initiative is a win for workers, families and communities alike. For more information or to get started with your application, contact us today.
