Worker retention payment

We’re funding a wage increase for the early childhood education and care (ECEC) workforce through the worker retention payment.

On this page:

The worker retention payment has been extended to 30 June 2028. If you currently have a grant agreement, you do not need to submit a new application to continue participating in the program from 1 December 2026. We will send you an offer to extend your grant agreement in mid-October 2026.

The worker retention payment is a grant from the government. It’s paid to ECEC services to help increase your workers’ wages.

Providers who opt in receive:

  • funding to support higher wages for eligible workers
  • additional funding to help cover related on-costs.

To get funding, providers must:

  • engage workers through a compliant workplace instrument
  • limit fee increases
  • pass funding on to eligible workers
  • meet safety standards (from July 2027).  

Payments are delivered to ECEC services via the Child Care Subsidy System.

Use the links below to find the information you need.

Read the grant guidelines

Check eligibility and conditions

Apply and get approved

Understand payments and how they work

See minimum rates you must pay workers

Manage your grant agreement

Get help

Key dates

These are key program milestones. Other dates apply depending on your circumstances, including fee growth caps and reporting deadlines.

DateMilestone
8 October 2024Applications open
2 December 2024Program starts (10% wage increase)
30 June 2025Historical leave liability applications close
30 September 2025Backdated payment applications close
1 December 2025Year 2 starts (15% wage increase)
31 December 2025Backdated funding review applications close 
17 June 2026Program extended to 30 June 2028 and expanded to In Home Care and Family Day Care 
October 2026Grant extension offers sent to current participants
1 December 2026Year 3 starts
Mid-December 2026Acceptance of grant extension offers due from continuing participants
28 February 2027Updated workplace instrument approval due from continuing participants
31 March 2027Reassessment due for services not meeting QA2 safety condition
1 July 2027QA2 safety condition starts
1 December 2027Year 4 starts
30 April 2028Applications close
30 June 2028Program ends

Resources

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