The Worker Retention Payment Explained: What Every Regional Childcare Centre Needs to Know

If you haven't updated your recruitment messaging since December 2024, there's a good chance you're underselling yourself to prospective educators.

The Worker Retention Payment — a Commonwealth-funded wage supplement for early childhood educators — is the most significant change to childcare pay in years. Understanding it, and communicating it clearly, could be the difference between filling your next vacancy and losing a candidate to a metro centre.

WHAT IS THE WORKER RETENTION PAYMENT?

The Worker Retention Payment is a government-funded supplement paid to eligible childcare educators on top of their award wages. It is not a replacement for award wages — it is an addition.

Key details: • From December 2024: 10% above the relevant award rate • From December 2025: 15% above the relevant award rate (through November 2026) • Applies to educators working in approved childcare services that are in scope for the Child Care Subsidy (CCS) • Covers Certificate III, Diploma and other eligible educator roles

WHAT DOES THIS MEAN IN PRACTICE?

Using the Children's Services Award as a base, approximate hourly rates with the Worker Retention Payment applied: • Certificate III educator: approximately $25–$28/hour (up from $23–$25) • Diploma educator / Room Leader: approximately $29–$34/hour (up from $26–$31) • Early Childhood Teacher: rates vary by experience, state and centre type

Note: These are approximate figures. Always verify current award rates and payment eligibility for your specific service through the Department of Education or your peak body.

WHY THIS MATTERS FOR REGIONAL CENTRES

Before the Worker Retention Payment, the wage gap between regional and metro centres was a genuine barrier to attracting educators. Metro centres could often offer more — whether through higher base pay, higher Cost of Living Adjustments or simply more hours available.

The Worker Retention Payment levels the playing field significantly. A regional centre with lower overheads and a genuinely supportive team culture can now make a compelling financial case alongside the lifestyle benefits of regional living.

HOW TO USE THIS IN YOUR RECRUITMENT

Explicitly state the Worker Retention Payment in your job advertisements. Most candidates — particularly those earlier in their career — have not heard of it. Phrases like "salary includes the Worker Retention Payment" or "take-home pay of approximately $X per hour with Worker Retention Payment applied" will stand out.

In interviews, walk candidates through what their actual take-home looks like. Pull out a calculator. Show them.

Pair the payment discussion with your centre's lifestyle story — lower commute times, closer-knit community, genuine career progression, lower cost of living in regional areas. The financial and lifestyle case together is compelling.

VHIRE AND THE WORKER RETENTION PAYMENT

When Vhire presents candidates to regional childcare centres, we ensure candidates are fully briefed on the Worker Retention Payment and understand what it means for their actual remuneration. Candidates who understand their full pay package are less likely to withdraw mid-process or accept a counter-offer from a metro centre.

We also help centres position their Worker Retention Payment compellingly in outreach to active and passive candidates.

Contact Vhire at info@vhire.com.au or visit vhire.com.au/hire-staff to discuss how we help regional centres compete for the best educators.