More services eligible for worker retention payment

This content was published on Tuesday 11 November 2025. There may be more recent updates available.

More early childhood education and care (ECEC) services can access the worker retention payment. From 1 December 2025 services that exceeded the fee growth cap can become eligible for the worker retention payment if they comply with a new combined cap over 2 years.

Previously, services that increased fees by more than 4.4% between 8 August 2024 and 7 August 2025 were not eligible. Now, these services can become eligible if their total fee increase does not exceed 8.6% over the 2 years from 8 August 2024 to 7 August 2026 (and does not exceed 4.2% from 8 August 2025 to 7 August 2026).

Providers can apply for these newly eligible services from 1 December 2025. These services will not be eligible for funding for the first year of the program.

All other services remain subject to the original annual fee growth caps:

  • 4.4% between 8 August 2024 and 7 August 2025
  • 4.2% between 8 August 2025 and 7 August 2026.

Providers may request an alternative fee growth cap in limited circumstances where financial viability is impacted.  

This change:

  • enables more providers and services to participate
  • supports wage increases for more workers  
  • helps keep fees affordable for families
  • ensures services that signed up earlier and stayed within the caps are not worse off than those joining later.

Learn more about the worker retention payment