New 5% WRP Minimum Rate Increase Effective from 1 December 2025

11.11.25 01:45 PM

On 1 December 2025, the Worker Retention Payment (WRP) minimum rates will increase by an additional 5% as part of the Australian Government’s second stage of the WRP pay rise initiative. This brings the total uplift to 15% above the relevant award rate.


Why This Increase Has Been Introduced
  • The Worker Retention Payment (WRP) was introduced to help strengthen the early childhood education and care (ECEC) workforce by supporting fairer wages and long-term retention across the sector.
  • Following the initial 10% uplift in 2024, this additional 5% increase is part of the government’s staged approach to improving pay, recognising the vital contribution of educators and teachers, and ensuring the sustainability of ECEC services nationwide.


What This Means for Services

From 1 December 2025 onwards:

  • The WRP amount will increase by an additional 5% above the award rate.
  • Therefore, you must pay all eligible employees at least 15% above their base award classification rate under either the Children’s Services Award 2010 or the Educational Services (Teachers) Award 2020.

  • If your service already pays above the award, you must still pass on at least the additional minimum amount payable to staff, equivalent to 5% of the award rate.

  • All WRP funding must continue to be used only for wages or eligible on-costs, in accordance with the program’s grant guidelines.


When to Apply the New Rates

  • As previously outlined, the new WRP minimum rates will apply from 1 December 2025 onwards.
  • You may apply these rates from your first pay cycle after 1 December, provided that any hours worked from this date are paid at the higher rate.
  • Applying the new rates promptly helps ensure ongoing compliance with both the Department of Education’s WRP funding conditions and Fair Work Commission's minimum wage obligations.

Where to Find the Updated Rates

The Department of Education has now published the updated WRP Minimum Rate Schedules, outlining the new minimum hourly rates for all eligible educator and teacher classifications.

View the updated WRP Minimum Rates on the Department of Education website

Need Assistance?

If you need help understanding or implementing the new minimum rate structure, our ACA WRP Support Service can assist.

📞 1300 856 379
📧 wrp@childcarealliance.org.au

Available Monday – Friday, 9am – 5pm (AEST)