Worker retention payment update: funding reviews and latest payment processing

Early childhood education and care (ECEC) services have been provided with an update on the worker retention payment, including guidance on when a funding review can be requested and confirmation that the latest payment cycle has been processed.

Services that believe the standard worker retention payment calculation does not accurately reflect their circumstances may be eligible to request a funding review.

A funding review can be requested by services that:

• have been approved for the worker retention payment
• have smoothed funding across all services listed on their grant agreement
• believe they are being undercompensated under the standard payment calculation.

Services that meet these criteria can initiate the review process by contacting [email protected]. Further information about how funding reviews are assessed is available through the Australian Government Department of Education website.

The Department has confirmed that worker retention payments for the period 1 December to 28 December 2025 have been processed.

These payments were processed on 23 January 2026. Services are reminded that the processing date does not necessarily reflect the date funds will appear in their bank accounts.

Worker retention payments are made at the service level through the Child Care Subsidy System and are deposited into the same bank account used for Child Care Subsidy (CCS) payments.

Services are encouraged to:

• review their worker retention payment amounts against expected funding
• consider requesting a funding review if they believe the standard calculation does not reflect their operational circumstances
• monitor CCS payment accounts for the receipt of funds following the January processing date.

Additional guidance on the timing and delivery of worker retention payments is available through Department of Education resources, with further updates expected as additional payment periods are finalised.