Understanding the new WRP minimum rates – gender-based undervaluation & AWR 

30.06.26 02:58 PM


There have been several changes to the Worker Retention Payment (WRP) minimum amounts payable because of the recent gender-based undervaluation (GBU)  & Annual Wage Review (AWR) decisions, which will need to be implemented into your payroll systems by your first full pay cycle on or after 1 July 2026.


This blog article will provide practical guidance on how to navigate these changes, understand the new wage schedules and remain compliant with your obligations as a recipient of the WRP.


Firstly, we recommend reviewing the Department’s new WRP wage tables which are available to view here


An overview of the upcoming changes

On 30 June 2026, minimum award rates for the Children’s Services Award (2010) will undergo the next staged GBU increases. Award rates will be increasing by a further 5% but as a WRP recipient, this increase will be absorbed into your employees WRP rates – more on this below.

 

On 1 July 2026, minimum award rates under both the Children’s Services Award (2010) (CSA)  and the Educational Services Teaching Award (2020) (ESTA) will increase again because of the Annual Wage Review decision. The increase will be 4.75%.

Note that for CSA rates, the 4.75% increase  will be applied to the already increased GBU rates.


Understanding the new rates 

Educational Services (Teaching) Award 2020 

□  No award rate changes will occur because of the GBU staged increases.

  Minimum award rates & WRP allowances will change because of the annual wage review only. They will increase by 4.75%.

  Your WRP funding will be indexed inline with the AWR increase.

  Employees overall takehome pay will likely increase. 



 Children's Services Award (2010) 

□  Minimum award rates & WRP allowances will change because of the gender-based undervaluation increases.

The minimum award rate will likely  move up

The WRP allowance will likely move down, absorbing the gender-based undervaluation rates

□  Minimum award rates & WRP allowances will change because of the annual wage review. It will apply to the already increased GBU rates and will increase by a further 4.75%.


 

 

GBU

AWR

WRP FUNDING

CSA

Minimum rates will increase.

 

WRP will absorb the minimum rate increase.

Minimum rates and WRP rates will increase by 4.75%

 

This will be implemented ontop of already increased GBU rates  

Will index inline with AWR increase.

ESTA  

NO CHANGES

Minimum rates and WRP rates will increase by 4.75%

Will index inline with AWR increase.


What you need to action

You must ensure that:

-  Employees minimum hourly award rates are updated on or after your first payroll cycle from 1 July 2026. They must align with the new rates.

-  Eligible employees minimum WRP amounts are changes in line with the Department’s new allowance schedules.

-  You are not absorbing the AWR increase into WRP rates. 


Worked example

Emily is a Level 1 Introductory Educator under the Children's Services Award (2010). We has been employed by her service prior to 28 February 2026.

 

As at 1 March 2026, Emily was paid:

  • $26.19 – base award rate
  • $2.50 – WRP

= $28.69 overall minimum wage

 

As a result of the GBU and AWR changes, from her first full pay cycle on or after 1 July 2026, Emily’s pay may look as follows:

  • $28.81 – base award rate
  • $1.25 – WRP allowance

= $30.06 overall minimum hourly wage


Key takeaways: 
  •  Emily’s base award rate increased by 5%, however this was absorbed by her WRP allowance.
  • This is why Emily’s WRP allowance reduced significantly.
  • After her base award rate was increased and then offset by the WRP, a further 4.75% increase has occurred to both of these rates due to the annual wage review.
  • There has been an overall increase in Emily’s take home pay, namely due to the annual wage review increase. 



Need further assistance? Contact our Free ACA WRP Support Service!

           Our ACA WRP Support Service is here to help. Contact us today:


  ☎️ 1300 856 379  

  📩 wrp@childcarealliance.org.au  

  🗓️ Monday to Friday, 9am-5pm AEDT