Minimum award rates increase annually, and many wages have been boosted by the worker retention payment, but there’s one more pay rise playing out for early childhood education and care workers – the gender undervaluation changes.
After a thorough priority awards review, the Fair Work Commission has found that workers under the Children’s Services Award have been subject to gender-based undervaluation.
As of 1 March 2026, changes have been made to this Award to simplify the classification system and raise minimum pay rates.
Though this is positive, you might feel like the changes have come about quickly, and be wondering what they mean for your service and team – especially if you’ve already opted in to the worker retention payment.
So, let us explain.
5 Things You Need to Know About the Gender Undervaluation Changes
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1. The gender undervaluation changes only apply to the Children’s Services Award.
Employees under this Award, and roles directly involved in care and education, are impacted by the changes.
While Teachers under the Educational Services (Teachers) Award, and Support Workers, like admin staff and cleaners aren’t impacted, and neither are Trainees.
2. Employees who are covered by the Children’s Services Award now fit into a greatly simplified classification structure.
The 30 Children’s Services Employee levels we had previously have been whittled down to these eight:
Children’s Services Award Pay Rates (from 1 March 2026)
| Level | Role Classification | Weekly Rate | Hourly Rate |
|---|---|---|---|
| Level 1 | Introductory Educator | $995.40 | $26.19 |
| Level 2 | Educator | $1,025.90 | $27.00 |
| Level 3 | Qualified Educator | $1,121.80 | $29.52 |
| Level 4 | Experienced Educator | $1,197.10 | $31.50 |
| Level 5 | Advanced Educator | $1,263.30 | $33.24 |
| Level 6 | Room Leader | $1,321.50 | $34.78 |
| Level 7 | Assistant Director | $1,381.90 | $36.37 |
| Level 8 | Director | $1,593.50 | $41.93 |
You’ll note that there’s just one classification for Directors now, and things have also changed for some people working as Cooks.
These are minimum award base rates. Casual loading, overtime, penalty rates and other allowances apply in addition to these rates.
3. Cooks must now be paid under the new classification structure if they may be required to help out as an educator on the floor, and need a qualification to do this.
This means that if you have a Cook who works with children at any point in time, even if they’re just quickly filling in, the new classification structure will apply to them.
Their level will be determined by their qualification.
So, for instance, a Cook with a Cert III comes under Level 3: Qualified Educator in the new structure.
And if your Cook isn’t ever required to work in ratio with children they’ll continue to be treated as a Support Worker under the old structure.
4. Every classification level is in line for a minimum pay rate increase, phased in over four years.
The first increase came into effect on 1 March 2026, with a 5% (or thereabouts) rise across all categories.
This will be followed by a series of staged percentage increases.
These will happen on 30 June each year from 2026 to 2028 or 2029 (depending on the level), and they’re in addition to the usual 1 July minimum wage increases.
So, for example, the award rate for a Level 3: Qualified Educator at a previous classification point of 3.1 will rise by 5% on 30 June 2026, 2027 and 2028, then increase by a further 1.2% on 30 June 2029, equating to a total increase of 23%.
Children’s Services Award – Staged Percentage Increases by Level
| New Level | Reference Point | 1 Mar 2026 | 30 Jun 2026 | 30 Jun 2027 | 30 Jun 2028 | 30 Jun 2029 | Total Increase |
|---|---|---|---|---|---|---|---|
| Level 1 | 1.1 | 5% | 5% | 5% | 5% | 2.65% | 24.8% |
| Level 2 | 2.1 | 5% | 5% | 5% | 5% | 5.12% | 27.8% |
| Level 3 | 3.1 | 5% | 5% | 5% | 5% | 1.20% | 23.0% |
| Level 4 | 3.3 | 5% | 5% | 5% | 3.55% | 0% | 19.9% |
| Level 5 | 3.4 | 5% | 5% | 5% | 1.91% | 0% | 18.0% |
| Level 6 | 4A | 5% | 5% | 5% | 6% | 5.14% | 29.0% |
| Level 6 | 4.1 | 5% | 5% | 5% | 1.03% | 0% | 16.30% |
| Level 7 | 5.1 | 5% | 5% | 5% | 5.07% | 0% | 21.6% |
| Level 8 | 6.1 | 5% | 5% | 5% | 5% | 1.17% | 23.0% |
For now, employees receiving the worker retention payment will keep getting the same total hourly pay, because it’s absorbed into the new pay rates.
And it’s important to note that not all workers will receive the full percentage increase promised by their classification level.
A person’s previous classification point will influence their income (in a small way), and the higher a reference point within a classification level, the lower their percentage increase will be.
So, for example, a Level 3: Qualified Educator at a reference point of 3.3 will get a little less than the 5% paid to a Qualified Educator with a reference point of 3.1.
5. How gender undervaluation changes interact with the worker retention payment.
You will continue to receive the same funding amount from the government, and as mentioned, your employee’s total hourly pay remains the same.
However, the worker retention payment you disburse will look different.
Instead of paying a flat 15% to your employee, the worker retention payment will be a dollar amount that’s calculated according to your employee’s classification level under the updated Award.
The table at the bottom of this webpage shows the rates for the Children’s Services Award (from 1 March 2026 to 30 June 2026).
Your employee’s total hourly pay will be made up of their minimum award rate, plus the worker retention payment component.
What the gender undervaluation changes mean for you as an employer
Unlike the worker retention payment, the new classification system and minimum pay rates are not optional.
So, it’s important that you’re across the changes, and update your payroll system in the following ways:
1. Update the classification structure
This means replacing the old 30 level structure with the new eight level system, and ensuring the pay templates align.
Trendsight’s Classification Conversion Tool makes it simple to translate your employees to the new award classification structure, by tapping in their previous classification.
There is also a section that explains the roles, responsibilities and qualifications associated with each classification level.
2. Update the base rates
This means applying the new minimum rates where required, and retaining higher rates where possible.
The Classification Conversion Tool will show you the split between an employee’s new award rate and the worker retention payment component, if you need these individual figures for payroll.
And if you’re not signed up to the worker retention payment, the tool will show the pay rise each employee has received, thanks to their new award rate.
3. Set calendar reminders
The minimum award rates will increase on 30 June 2026, 30 June 2027, 30 June 2028 and 30 June 2029.
So, make a note of these dates to ensure your employees get these increases from the first full pay cycle after 30 June each year, and plan your budget accordingly.
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FAQs
From 1 March 2026, the Fair Work Commission has made changes to the Children’s Services Award 2010 to ensure classifications and rates of pay reflect the work done by employees under the Award. The gender undervaluation changes include a simpler eight level classification system and increases to minimum pay rates over four years.
The changes begin from the first full pay period on or after 1 March 2026, when the new classification structure and the first wage increase come into effect.
Additional increases will then occur on 30 June each year through to 2028 or 2029, depending on the employee’s classification and reference point. These staged increases allow the sector to transition gradually to the new benchmark wage levels.
The total wage increase varies depending on the classification level and reference point within the award.
Across the Children’s Services Award, the total increases range from around 16% up to nearly 29% once all staged increases are applied. For example, a Qualified Educator at the previous classification point of 3.1 will receive staged increases totalling approximately 23% by 2029.
The changes apply to employees covered by the Children’s Services Award, including educators, room leaders, assistant directors and directors in long day care and outside school hours care services.
However, the exact increase schedule differs depending on the employee’s classification and reference point under the previous award structure, which determines how their role translates into the new classification levels.
No. The new rates represent minimum award base rates only.
Other award conditions still apply, including casual loading, overtime, penalty rates and allowances, which are calculated in addition to the new base wage rates.
