New legislation will secure $3.6 billion in ongoing funding for the pay increase, tying future payments to compliance with national child safety standards
The Albanese Government introduced legislation to Parliament today (12 August 2026) that will permanently lock in the 15 per cent Worker Retention Payment for early childhood education and care (ECEC) staff, according to a joint media release from Education Minister Jason Clare, Minister for Employment and Workplace Relations Amanda Rishworth, and Minister for Early Childhood Education Jess Walsh.
The bill amends the Wage Justice for Early Childhood Education and Care Workers (Special Account) Act 2024 to direct a further $3.6 billion toward the pay rise, while embedding a requirement that services meet the National Quality Standard (NQS) — the national benchmark for education and care quality — to remain eligible for the payment.
Under the existing scheme, the 15 per cent pay rise translates to $255 more per week for a typical full-time educator and $410 more per week for early childhood teachers compared with pre-program rates, the release states. More than 80 per cent of eligible services are currently receiving the payment.
The legislation will also formalise the link between the funding and fee restraint for families. Services receiving the payment must limit increases passed on to parents, and the government projects average families will save around $1,500 over the next two years as a result.
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