From 1 March 2026, changes arising from the gender-based undervaluation final determination will begin flowing through to payroll systems across the early childhood education and care sector.
While classification mapping has been a critical first step, providers must now ensure their payroll systems are configured correctly. Payroll outcomes will depend on:
The workplace instrument that applies (IFA, MEA or own EA)
Whether the Worker Retention Payment (WRP) is paid as a single combined rate or a separate allowance; and
Whether employees are paid at or above award rates
This article outlines the key payroll implementation considerations around of the 1 March 2026 award changes.
We recommend first to review the below updated base award hourly rates and Worker Retention Payment minimum amounts to familiarise yourself with the new figures moving forward.
NOTES:
- For CSEs classified at this level as at 28 February 2026, there is no change to their minimum award rate from the
- first full pay period on or after 1 March 2026.
- A separate phasing-in arrangement applies to CSEs classified at this level as at 28 February 2026. That is why not
- all classifications mapped to Level 6 have the same minimum award rate under the CS Award.
To view the updated WRP amounts payable from 1 March 2026, click here and navigate to the dropdown titled "Children’s Services Award 2010 (from 1 March 2026 to 30 June 2026)".
The new WRP amount payable will be the amounts listed in the column titled "Difference between new minimum rate and award".
The changes taking effect from 1 March 2026:
Will not change your WRP funding allocation
Will not automatically trigger a funding reassessment
The gender-based undervaluation decision affects payroll implementation — not the underlying WRP funding model. Thus, your WRP funding amount will remain as is.
However, providers must ensure that the correct adjusted WRP hourly rates are applied in payroll from the first full pay cycle after 1 March 2026.
→ To assess the impacts of the changes on your payroll as a WRP grantee, choose your workplace instrument below & review your payroll composition.
Services operating under an Individual Flexibility Arrangement (IFA)
If your service operates under and IFA:
Employees must be reclassified by 1 March 2026 (if not already completed).
The new classification must be reflected on the first full payslip on or after 1 March 2026.
Payroll composition may change depending on how WRP is structured
Payroll structure | Pay position | Payroll Actions | Net pay outcome |
Single Combined Rate | At Award or Above Award | Employee reclassified. Combined hourly rate remains unchanged No change to payroll composition. | No change |
Separate Allowance | At Award | Employee reclassified Award base rate increases WRP allowance adjusts in line with the Department’s updated rates. | No change |
Separate Allowance | Above Award Maintain Above Award Payment | Employee reclassified Award base rate increases Above-award payment remains WRP allowance adjusts in line with Department's updated rates. | No change |
Services operating under the Multi-Employer Agreement (MEA):
If your service is covered by the Multi-Employer Agreement:
Employee classifications do not change at-this time.
Payroll composition may still require adjustment.
Providers must ensure employees are not paid less than the new applicable minimum award rate from the first full pay period on or after 1 March 2026.
The reverse mapping tool should be utilised to confirm compliance with the updated award minimums.
Payroll structure | Pay position | Payroll Actions | Net pay outcome |
Single Combined Rate | At Award or Above Award | Classification unchanged Combined hourly rate remains unchanged No structural payroll change required. | No change |
Separate Allowance | At Award | Classification unchanged Award base increases WRP allowance adjusts in line with the Department’s updated rates. | No change |
Separate Allowance | Above Award Maintain Above Award Payment | Classification unchanged Award base increases Above-award payment remains WRP allowance adjusts in line with Department's updated rates. | No change |
Ahead of 1 March 2026, providers who pay the WRP as a separate allowance should:
Review the Department’s adjusted WRP hourly rates
Update payroll systems to reflect the correct WRP amount
Apply the updated rate from the first full pay period on or after 1 March 2026
Ensure WRP continues to be passed through to eligible employees in accordance with funding conditions
Classification mapping finalised (where required)
Reverse mapping completed (if under MEA)
Department’s adjusted WRP rates confirmed/ WRP amounts correctly applied
Payroll configuration reviewed and updated
Payroll systems updated to reflect new rates of pay and classifications
Staff communications prepared (hyperlink to templates)
First full pay period from 1 March 2026 identified
Providers should ensure the following steps are completed:
This is a complex area and individual payroll arrangements may vary.
→ If your circumstances do not align with the general scenarios outlined above, ACA members are encouraged to contact the Workplace Relations Advice Line or review the Gender-based undervaluation toolkit (available via your member portal now).
Should you require further assistance, access our below resources:
→ Gender-based undervaluation reclassification matrix
→ Gender-based undervaluation factsheet for employees
