Questions and answers about the ECEC wage increase

Find answers to questions about the wage increase for the early childhood education and care (ECEC) workforce.

On this page:

We will update this page regularly. For more information, go to early childhood wages.

For providers

Can new services get the payment? How does the fee constraint apply to them? New

For services that open after 8 August 2024, the reference point for the fee growth cap is the date the service was established. The fee growth constraint applies on a pro rata basis.

What do I do now?

More information will be available soon. In the meantime, there are things you can do now to prepare for the payment. These include:

  • Do not increase your fees by more than 4.4%. This came into effect on 8 August and will last for 12 months.
  • Prepare to pay your staff through a workplace instrument.
  • Make sure you have your provider and service CRNs ready for when you apply. You can find these on the Provider Entry Point or your third-party software.

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Which workers will be eligible?

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 includes teachers, educators, cooks, coordinators, room leaders and support workers.

I offer vacation care – can I put up my fees for excursions?

Vacation care services may increase fees for excursions. All other fees are subject to the fee growth percentage cap. Additional excursion costs excluded from the fee growth percentage cap should reflect only the actual cost of excursions. The department may require information from providers to demonstrate this.

What happens after 2 years?

This is an interim payment while:

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 government will determine longer-term funding arrangements as part of its response to the ACCC and PC reports.

What is a compliant workplace instrument that meets grant conditions?

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

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

Workplace instruments are legally binding. They will give the department assurance that funding is being passed on to workers as higher wages.

The workplace instrument must provide for wage rates that are compliant with the wage rates in the grant guidelines. These will be published in September/October 2024.

We will provide more information about compliant workplace instruments soon.

Is the 4.4% fee cap per year, or is it 4.4% over the 2-year period?

Between 8 August 2024 and 7 August 2025, the fee cap percentage is 4.4%. A percentage determined by the ECEC Cost Index published by the Australian Bureau of Statistics will be applied in subsequent periods.

Will the grant cover on-costs such as superannuation, leave liabilities etc?

The funding will contribute towards the associated on-costs of a wage increase. However, funding must be first expended on wages. We will provide more information regarding eligible on-costs soon.

How will the grant work?

To get the grant, providers will need to:

  • apply for the payment
  • meet eligibility requirements and payment conditions
  • meet reporting obligations.

Payments will be made to ECEC services via the Child Care Subsidy System. We will provide more information regarding payments soon.

Do workers currently paid above the national award rates receive the wage increase?

Yes, the wage increase is for all eligible ECEC workers. Providers who get the worker retention payment must pass all funding on to eligible workers, even those already paid above award wages. These workers should receive a wage increase, calculated on the award rate.

The worker retention payment will support a wage increase on top of current national award rates.

What happens if a provider chooses not to meet the eligibility requirements?

The worker retention payment is an opt-in measure. Employees are encouraged to discuss the matter with their provider.

When will more details be available?

We will provide more details, including grant guidelines, over the coming weeks.

To get information and updates:

What do you need to do?

Providers will need to apply for the worker retention payment. It will be paid in the form of a grant. Providers will need to meet eligibility requirements and payment conditions to get the payment. More information, including grant guidelines, will be made available soon.

When do applications open?

Grant applications for the worker retention payment are expected to open in October 2024.

When will the wage increase start?

The worker retention payment will be calculated from December 2024.

How long will the payment run for?

The payment will run for 2 years.

Which care types are eligible?

Child Care Subsidy-approved Centre Based Day Care or Outside School Hours Care services are eligible.

We will consult with the Family Day Care and In Home Care sectors to understand how support can be extended to their workforce.

What are the payment conditions?

The payment will be conditional on providers:

  • limiting fee growth to no more than 4.4% from 8 August 2024
  • engaging staff through a compliant workplace instrument that meets grant conditions
  • passing on all funding to eligible workers through increased wages.

We’ll provide more detail on these conditions in the coming weeks.

What is the fee growth cap?

To get the payment, providers will not be able to increase their fees annually by more than a set percentage for the 2 years.

Between 8 August 2024 and 7 August 2025, this percentage is 4.4%.

A percentage determined by the ECEC Cost Index published by the Australian Bureau of Statistics will be applied in subsequent periods.

Why can’t I increase fees?

Funding will be conditional on providers agreeing to limit fee increases. This supports affordability and accessibility for families.