Frequently Asked Questions

Early Childhood Education and Care Worker Retention Payment Grant
Frequently Asked Questions

Has your OSHC service applied for the worker retention payment grant yet?

Many providers and services think they are not eligible – but this is not true. The Government’s intention is for as many services as possible to apply for the grant. Attend a FREE online information session to find out why you should apply before 30 September 2025!

Who should attend information sessions:

Nominated supervisors, OSHC leaders, finance/business managers, approved provider representatives, school principals.

What will be covered:

Workplace Instrument requirements - Individual Flexibility Arrangements (IFA)
Unpacking the Fair Work Commission’s findings on gender undervaluation – what does it mean?
Grant application and funding guideline requirements
How the grant is paid and monitored
Payroll and back pay considerations
Support available

What will be covered:

Workplace Instrument requirements - Individual Flexibility Arrangements (IFA)
Unpacking the Fair Work Commission’s findings on gender undervaluation – what does it mean?
Grant application and funding guideline requirements
How the grant is paid and monitored
Payroll and back pay considerations
Support available

Who is NOSHSA?

The National Outside School Hours Services Alliance (NOSHSA) is a network of all Australian state and territory Outside School Hours Care (OSHC) Associations and Communities of Practice (CoPs).

NOSHSA is recognised as the Australian peak body for OSHC by the Education Council. Peak bodies are recognised by governments as being able to provide pertinent advice and recommendations on behalf of their members. The membership bases in each of NOSHSA's jurisdictions include both small and large providers, prioritising community based and not for profit parts of the sector.

NOSHSA has been meeting regularly with the Government and other large representative bodies over the past 2 years to ensure that the OSHC sector was included in the proposed wage increase for the Early Childhood Education and Care (ECEC) sector. As your peak body, we were very much involved in advocating for government funded wage increases long before the announcement was made.

What is the Worker Retention Payment?

The worker retention payment is a 2-year grant from the government to help increase employees’ wages in ECEC and OSHC services up to 15% (10% in the first year and 15% in the second). Providers must apply for the grant. Employees do not have to be paid under the Children’s Services Award to be eligible.

The worker retention payment is an interim measure while the Fair Work Commission finalises and implements changes to the Children’s Services Award (and other awards) following the findings of gender-based undervaluation. The Fair Work decision, published on the 16th April, indicates that all classifications and levels will increase, some as high as 23%, over the coming years. This increase is in addition to the annual wage review decision so the actual increases over this time are likely to be much higher.

Why apply for the Worker Retention Payment by September 30 2025?

Services can apply for the grant up until September 2026. However, services who have submitted a complete application by 30 September 2025 will enable back dated payments to 2 December 2024 for all employees who were working in the service at the time (see below for employees who have left).

What is gender undervaluation?

On 16th April 2025, the Fair Work Commission found that the Children’s Services Award, along with a number of other awards that are female dominated, has historically been undervalued and underpaid due to gender.
The ECEC workforce is 90% female.
The decision means there will be changes to the Award to better reflect the true value of this work.
Provisional findings discuss across-the-board incremental wage increases from 5 August 2025 and a restructure/simplification of the wage classifications. Some classifications will increase as high as 27%.
The provisional findings discuss staged increases over 5 years.
The Union has indicated it will pursue similar increases for ECEC educators paid under other awards.

Our employees don’t get paid under the Children’s Services Award?

OSHC employees in CCS approved services are eligible if they are doing similar work to those employed under the Children's Services Award, even if employed under a different award or enterprise agreement (EA). As long as the award or EA has a provision for using an Individual Flexibility Arrangement (IFA), you can use this tool to pay the staff the worker retention payment. NOSHSA can assist you – you just need to contact us!

We don’t have an EA to use as a ‘workplace instrument’?

The easiest way for OSHC services to implement the wage increase is through an Individual Flexibility Arrangement (IFA) as the workplace instrument. You don’t need to be under an EA or develop an EA. An IFA is a written agreement between the employer and each employee to pay the higher wages. NOSHSA has an IFA template which can be used immediately with all employees as the compliant workplace instrument for the grant purposes.

Already paid above the award?

You can still get a funded increase on top of your current above award rate. However, you cannot use the grant money to fund your existing above award rate commitments.

Why was I told my CRN is wrong?

The provider has one unique CRN. It is different to the service CRNs. A CRN is 9 numbers and ends with a letter. For example, 123456789A.

Find your provider CRN:

on the top left of your CCS approval letter
in the CCS System via the PEP or your third-party software.

Find your provider CRN:

on the top left of your CCS approval letter
in the CCS System via the PEP or your third-party software.

I already put my fees up, so am I ineligible?

One of the grant conditions is that services do not increase their fees more than 4.4% between 8 August 2024 - 7 August 2025, 4.2% between 8 August 2025 - 7 August 2026, and a further percentage to be advised from 8 August 2026 to the end of the grant. However, you can request an alternative fee growth amount if you are able to demonstrate that the standard fee growth cap would seriously impact your service’s financial viability. NOSHSA can help with this application.

Our service exceeded the fee growth cap in the first year. Can we apply in the second?

No. Services must meet the alternative fee gap requirements in years 1 and 2, even if they are not back dating wages and only wanting the grant in year 2. (You can still apply for the alternative fee growth review for exceptional circumstances.)

What happens if an employee left – are they entitled to back pay?

Employees who leave the service after 2 December 2024 are entitled to any eligible back pay if the service is approved for the grant. However, to get the worker retention payment, an employee needs to sign an IFA.

If employees signed an IFA before they left, they are entitled to back pay as there is a written agreement in place.
However, you cannot ask someone to sign an IFA if they are not an employee. Therefore, there is no requirement to pay if there is no agreement in place.
(NB: QLD P&C Services – backpay is payable to employees who have left)

If you get a signed agreement from the employee and approved for the grant, you will need to work out the 10% wage increase for them for that period as part of your back pay to all eligible employees.

Once I have been approved, how long after I get my first payment?

The first payment can be 4-5 weeks after the grant has been approved. It will appear in your bank account with CCS payments. Check Provider Entry Portal for notification.

What is Historical Leave Liability?

This is a once-off lump-sum payment to acknowledge that any leave accrued prior to 2 December 2024 will need to be paid out at a higher rate, either from the WRP grant conditions or through permanent increases to the Children’s Services Award.

The lump sum amount will cover 70% of the ‘top-up amount’. 70% is a ‘reasonable contribution’, acknowledging not all leave types are actually incurred (eg some leave is not paid out when a worker resigns such as personal leave and long service leave).

The leave does NOT need to be paid out during the period of the grant.

Applications for Historical Leave Liability closed on 30 June 2025.

What oncosts are included in the Worker Retention Payment?

The Grant guidelines specify the following wage oncosts to be paid from the grant money”

Superannuation
Workcover
Payroll tax
Leave loading
Accrued leave liabilities (a single payment)

If the award increases by 5% in August 2025 due to gender undervaluation, do I need to pay that increase?

Services getting the WRP, continue to pay the 10% increase (on the new July 2025 rates).
Services not applying for the WRP will need to pay staff according to the Children’s Services Award, including whatever increases there may be. If you have not been approved for the WRP when the Award goes up, your service is obliged to pay whatever the minimum Award rates are. (This can then be offset later when you are approved and paid the grant ie If the Award went up 5% and you are approved for 10% WRP, you would need to backpay the remaining 5% to bring it up to 10%.)
The Children’s Services Award is likely to increase following further Fair Work determinations.

What happens after 30 November 2026?

The Worker Retention Payment is an interim measure until 30 November 2026, while the Fair Work Commission finalises its gender undervaluation priority awards review and the Government charts a course towards a universal ECEC system informed by the Australian Competition Consumer Commission (ACCC) and Productivity Commission (PC) reports.

Providing high quality ECEC is a priority for the Australian Government. The Government is committed to ensuring the cost of fair wages for ECEC workers is not passed on to families through higher fees.

What support is available for me?

Please reach out to NOSHSA now to ask your questions!

NOSHSA also has a toolkit of resources to help you succeed in your application, pay the grant money accurately (including back pay) and track the payments.

NOSHSA are here to help. We are funded by the Australian Government to provide this service and we continue to advocate on behalf of the sector. For further information about NOSHSA’s advocacy and resources, please see our website.

What support is available for me?

Please reach out to NOSHSA now to ask your questions!

NOSHSA also has a toolkit of resources to help you succeed in your application, pay the grant money accurately (including back pay) and track the payments.

Phone: 1300 781 749

Early Childhood Education and Care Worker Retention Payment Grant Frequently Asked Questions

Early Childhood Education and Care Worker Retention Payment Grant
Frequently Asked Questions