Children's Services Award rates in Australia 2025/2026
A practical guide for early learning service owners, directors, managers & payroll teams
Updated • Classification structure and rates updated from 1 March 2026 (MA000120) Updated 1 Mar 2026
Written by
Steve Harris
Quick summary — Children's services award 2025/26
The Children's Services Award 2010 (MA000120) sets minimum pay rates and employment conditions for early childhood education and care employees. From the first full pay period on or after 1 July 2025, Award wages increased, and from 1 December 2025 eligible services must pay at least 15% above Award under the Worker Retention Payment scheme.
This guide provides general information about the Children's Services Award 2010 (MA000120) and related Australian workplace laws as at the date of publication.
It does not constitute legal, financial, payroll or employment advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Award coverage, classification, minimum pay rates, penalties, overtime, allowances, and other entitlements depend on the employer's operations, the employee's role, duties, qualifications, experience, employment type, location, and the hours and times actually worked. Not all early childhood employees are covered by the Children's Services Award, and some may be covered by a different modern award, an enterprise agreement, or another industrial instrument.
The Award changed materially from the first full pay period on or after 1 March 2026. Schedule I translation and retained-rate rules apply to employees already classified on 28 February 2026. Employers must independently verify classification and rates for all affected employees against the official Award text and published pay guides.
The Worker Retention Payment (WRP) is a separate, grant-funded wage initiative and does not amend the Award. WRP obligations apply only to eligible services that participate in the scheme and comply with its funding conditions.
If there is any inconsistency between this guide and official sources, the official sources prevail. Employers remain solely responsible for compliance with the Fair Work Act 2009 (Cth), the National Employment Standards, the Children's Services Award 2010, and any other applicable industrial instruments.
Most searched Children's services award rates (quick answer)
Rates below are from the new structure effective from the first full pay period on or after 1 March 2026.
| Role | Classification (from 1 Mar 2026) | Hourly rate (adult FT/PT) |
|---|---|---|
| Introductory educator | Level 1 – Introductory Educator | $26.19 |
| Qualified educator (Certificate III) | Level 3 – Qualified Educator | $29.52 |
| Diploma-qualified educator | Level 5 – Advanced Educator | $33.24 |
| Room leader | Level 6 – Room Leader | $34.78 |
| Assistant Director | Level 7 – Assistant Director | $36.37 |
| Centre Director | Level 8 – Director | $41.93 |
| Casual Diploma educator | Level 5 casual (incl. 25% loading) | $41.55 |
Rates shown are minimum Award rates from 1 March 2026 and do not include allowances, overtime, or higher duties. Employees classified on 28 Feb 2026 may have different rates under Schedule I translation rules — check the official pay guide.
WRP (from 1 Dec 2025): For eligible participating services, use the Department of Education's published WRP minimum-rates table — not a self-calculated "award plus 15%" figure. WRP minimums were not changed when the award changed on 1 March 2026.
Casual loading: 25% on ordinary hours. Minimum engagement: casual minimum 2 hours per engagement (and minimum 4 hours' pay for work on Saturday, Sunday or a public holiday).
Ordinary hours span: Mon–Fri, 6:00am–6:30pm (non-shiftworkers).
Looking for MA000120?
This is it. MA000120 is the official Fair Work code for the Children's Services Award 2010, also known as the Children's Services Award. This guide covers all MA000120 pay rates, classifications, penalties and compliance requirements updated for 2025/26, including the new 8-level structure from 1 March 2026.
View official MA000120 on Fair Work →Children's services award rate calculator
See how penalty rates work under MA000120 for different classification levels and shift types. This interactive example shows the rates RosterElf uses when automatically interpreting the Children's Services Award.
See how RosterElf interprets the Children's Services Award
This is an educational example showing how penalty rates work under the Children's Services Award (MA000120). It demonstrates how RosterElf automatically calculates correct pay rates based on classification level, employment type, and shift times.
Children's Services Award penalty rates
Example weekly cost (38 hours)
Example only — not for payroll use
This is a demonstration of how RosterElf calculates award-compliant rates.
The actual cost for your employees will depend on:
- Their specific classification level and employment type
- Actual hours worked and shift times
- Any additional allowances, overtime, or enterprise agreement provisions
- Current award rates (rates changed 1 March 2026 and will change again on 30 June each year)
- Schedule I retained-rate rules if the employee was classified before 1 March 2026
Calculator Limitation
This calculator shows simplified penalty scenarios for demonstration. The Children's Services Award has additional complexity including overtime rules (150%/200% FT; 175%/225% casual), non-contact time entitlements, and Schedule I transition rules for existing staff. Always verify with the official Fair Work pay guide.
For accurate payroll calculations, always:
- Verify current rates with the official Fair Work pay guide
- Confirm your employees' correct award coverage and classification (including Schedule I for existing staff)
- Use award interpretation software or consult a payroll professional
- Review your specific enterprise agreement (if applicable)
Do not rely on this example for actual wage payments.
Stop calculating penalty rates manually
Let RosterElf handle award compliance automatically
Manual award calculations are time-consuming and error-prone. With the Children's Services Award changing again from 1 March 2026, one mistake can lead to underpayments and Fair Work penalties. RosterElf's award interpretation engine does the work for you.
How RosterElf automates award calculations
Create pay templates
Create pay templates for each classification level by adding award-compliant base rates and penalty multipliers. Once configured, RosterElf automatically applies the correct template to each shift based on the employee's classification, shift timing, and employment type.
Award interpretation →Define rate rules
Configure when different penalty rates apply (shiftwork, weekends, public holidays). The system automatically detects which rate to use based on shift times, days, and the employee's classification type.
Penalty rates guide →Auto-apply to shifts
Every rostered shift automatically calculates the correct pay rate based on the employee's classification, employment type, and shift timing. No manual work required.
Payroll integration →What changed in the Children's services award in 2025/26?
The Children's Services Award was affected by three significant changes in 2025/26: an Annual Wage Review increase from 1 July 2025, a Worker Retention Payment increase from 1 December 2025, and a new 8-level classification structure with new minimum rates from 1 March 2026 following the Fair Work Commission's gender undervaluation review.
Award wage increases from 1 July 2025
Minimum award wages increased by 3.5% from the first full pay period on or after 1 July 2025, following the Annual Wage Review 2024–25.
Worker retention payment — WRP year 2 from 1 December 2025
The Worker Retention Payment is a separate, grant-funded wage initiative — it does not amend the Award. From 1 December 2025, WRP year 2 lifted the funded wage uplift to 15% above the applicable Award rate over the 2-year program (10% from 2 December 2024, a further 5% from 1 December 2025).
Eligibility, fee-cap, and pass-through rules apply. Check the Worker Retention Payment — overview (Department of Education) for your service's obligations. For additional context, see Worker Retention Payment guidance (Fair Work Ombudsman).
New classification structure from 1 March 2026
The Children's Services Award changed again from the first full pay period on or after 1 March 2026, through the Fair Work Commission's gender undervaluation review. The main changes are:
- A new 8-level Children's Services Employee (CSE) classification structure replaces the old multi-level/pay-point model
- New minimum rates apply from the first full pay period on or after 1 March 2026
- Changes to some allowance percentage calculations
- Schedule I creates translation and retained-rate rules for employees already classified on 28 February 2026
How the old classifications translate to the new structure:
| Old classification | New classification (from 1 Mar 2026) |
|---|---|
| Level 3.4 (Diploma educator) | Level 5 – Advanced Educator |
| Level 4.1 – 4.3 (Room leader roles) | Level 6 – Room Leader |
| Level 5A / 5.1 – 5.4 (Assistant Director) | Level 7 – Assistant Director |
| Level 6.x (Director) | Level 8 – Director |
Important — Schedule I retained-rate rules: Do not assume every existing employee simply moves to the standard new level rate. Former Level 4A employees have a separate transitional Level 6 minimum until 30 June 2026. Some former Level 3A, 3.3, 4A.5 and Director employees may retain the higher of the translated rate or their pre-1 March 2026 minimum rate. Always check Schedule I for each employee classified on 28 February 2026.
Further staged award pay changes are scheduled on 30 June each year until 2028 or 2029 depending on classification. If you are setting multi-year wage budgets, plan for ongoing changes.
Recent legislation changes you need to know
Intentional wage theft is now a criminal offence (1 January 2025)
Deliberate underpayment of wages, paid leave entitlements, superannuation and salary sacrifice amounts is now a criminal offence under the Fair Work Act. Honest mistakes are not covered, but services must have adequate systems in place to demonstrate compliance.
Right to disconnect — now in the Children's Services Award (clause 21A)
The right to disconnect applies to all employers in the national system. The Children's Services Award now contains clause 21A. It started for non-small business employers on 26 August 2024 and for small business employers on 26 August 2025. Employers must not prevent employees from exercising this right, while contact is still allowed for emergency roster changes.
Super guarantee is now 12% (from 1 July 2025)
The superannuation guarantee rate increased to 12% from 1 July 2025. Ensure your payroll is updated to reflect the new rate for all eligible employees.
Payday Super starts 1 July 2026
The Payday Superannuation Act 2025 passed in November 2025. From 1 July 2026, employers must pay superannuation on the same day as wages. Services should review payroll processes now to prepare for this change.
ECEC Wage Justice Act enacted (December 2024)
The Wage Justice for Early Childhood Education and Care Workers (Special Account) Act 2024 became law on 10 December 2024, establishing the special account used to fund remuneration increases in the sector, including the Worker Retention Payment.
Children's services award coverage — does MA000120 apply?
The Children's Services Award may apply to certain early childhood education and care employers and employees, depending on the nature of the service, the employee's role, and whether another industrial instrument applies. This guide assumes, for explanatory purposes only, that the Children's Services Award 2010 (MA000120) applies. Employers must independently confirm Award coverage before relying on any summary in this guide.
What is the Children's services award 2010 (MA000120)?
The Children's Services Award 2010 (MA000120) is a modern award setting minimum wages and employment conditions for many roles in early childhood services. It includes rules on hours of work, part-time arrangements, casual employment, overtime, and shiftwork.
Who the Children's services award covers
The Award contains classifications for:
- Support workers
- Children's services employees (multiple levels, including Diploma/room leader-type structures)
- Directors (higher level classifications)
Who is NOT covered by the Children's services award
Not all early childhood employees are covered by the Children's Services Award. Some employees may be covered by a different modern award (such as the Educational Services (Teachers) Award), an enterprise agreement, or another industrial instrument. Where another lawful instrument applies, Award rates and conditions may not be payable.
Common "different instrument" scenarios include:
- Employees covered by an enterprise agreement
- Roles covered by a different award (e.g., some teachers may be under the Educational Services (Teachers) Award)
- Local government or other sector-specific arrangements
For more information on Award coverage, see the Children's Services Award coverage summary (Fair Work Ombudsman).
Not all workers in early learning or care-adjacent services are covered by the Children's Services Award. Depending on the role, employer, and funding model, employees may instead be covered by a different modern award. For related coverage guides, see: SCHADS Award pay rates, Nurses Award pay rates, or Aged Care Award pay rates.
How to classify employees under the Children's services award
Getting classification right is one of the most important compliance steps. The Award changed to a new 8-level structure from 1 March 2026. Incorrect classification leads to incorrect pay rates across all hours worked — and employees classified on 28 February 2026 may have additional Schedule I transition rules to check.
Quick classification decision tree (from 1 March 2026)
Use this to identify the likely level — always verify against the Award's Schedule B definitions and check Schedule I if the employee was classified before 1 March 2026.
Does the employee perform direct educational programming duties?
What is the employee's qualification?
Does the employee have leadership, coordination or director responsibilities?
The 8-level Children's services employee structure (from 1 March 2026)
From the first full pay period on or after 1 March 2026, CSE employees are classified under Schedule B as follows. Classification is based on skills, responsibilities, qualifications, experience and duties — not job title. Tools for tracking educator qualifications help keep classification records accurate.
Level 1 – Introductory Educator
Less than 12 months' experience as a Children's Services Employee. Entry-level position with no formal early childhood qualification required.
Level 2 – Educator
At least 12 months' experience as a Children's Services Employee.
Level 3 – Qualified Educator
Holds an approved Certificate III in Early Childhood Education and Care.
Level 4 – Experienced Educator
Holds Certificate III plus at least four years' post-qualification industry experience at Level 3.
Level 5 – Advanced Educator
Holds a Diploma-level ECEC qualification, or equivalent OSHC qualification. Previously classified as Level 3.4 under the old structure.
Level 6 – Room Leader
Leads a room or group program. Previously classified as Levels 4.1–4.3 under the old structure.
Level 7 – Assistant Director
Assistant Director or listed coordinator role with required qualification or equivalent. Previously classified as Level 5A / 5.1–5.4 under the old structure.
Level 8 – Director
Responsible for the overall operation and management of the service. Previously classified as Level 6.x under the old structure.
Support worker classifications
Support workers are classified separately (Levels 1–3) and have their own pay rates. They perform cooking, cleaning, laundry, driving, gardening, maintenance or administrative duties rather than direct educational programming.
Cook classification note: Cooks required to hold (or actively work towards) an approved ECEC qualification and who may work directly with children to maintain educator-to-child ratios can fall under the CSE wage structure rather than the Support Worker structure. The Award now expressly maps those cook roles to CSE levels according to the ECEC qualification held or being worked towards.
Why job titles don't determine classification
A "Room Leader" job title alone does not automatically mean Level 6. Classification must be based on actual duties, qualifications, and responsibilities per the Award's Schedule B definitions. Only the Fair Work Commission or a court can make a binding determination.
Schedule I — check this for employees classified before 1 March 2026
Schedule I creates translation and retained-rate rules for employees already classified on 28 February 2026. Some translated employees keep the higher of the translated rate or their pre-1 March 2026 minimum rate. This is especially important for some former Level 3A, Level 3.3, Level 4A.5 and Director employees. Do not assume every existing employee simply moves to the standard new level rate without checking Schedule I.
Similar classification risks arise in other care and support sector awards. See also: classification rules under the SCHADS Award and classification structures in the Aged Care Award.
Children's services award pay rates 2026 (MA000120)
The rates below are the minimum hourly wages under the new classification structure, effective from the first full pay period on or after 1 March 2026. Always verify current rates using the Fair Work pay guides directory. Employees classified on 28 February 2026 may have different rates under Schedule I — check before applying any new rate.
Children's services employee — adult rates (full-time & part-time)
Base Award rates before casual loadings, overtime, shiftwork loadings, or WRP increases are applied.
| Classification (from 1 Mar 2026) | Hourly rate |
|---|---|
| Level 1 – Introductory Educator | $26.19 |
| Level 2 – Educator | $27.00 |
| Level 3 – Qualified Educator (Certificate III) | $29.52 |
| Level 4 – Experienced Educator (Cert III + 4 yrs) | $31.50 |
| Level 5 – Advanced Educator (Diploma) | $33.24 |
| Level 6 – Room Leader | $34.78 |
| Level 7 – Assistant Director | $36.37 |
| Level 8 – Director | $41.93 |
Support worker — adult rates (full-time & part-time)
| Classification | Hourly rate |
|---|---|
| Support Worker Level 1.1 | $24.95 |
| Support Worker Level 2.1 | $25.71 |
| Support Worker Level 2.2 | $26.56 |
| Support Worker Level 3.1 | $28.12 |
Rates shown are minimum Award rates from 1 March 2026 and do not include allowances, overtime, penalties, or higher duties. Check Schedule I for employees already classified on 28 Feb 2026.
Adult pay rates — casual (includes 25% loading)
Casual employees receive a 25% loading on top of the base Award rate. The table below shows the combined hourly rate.
| Classification (from 1 Mar 2026) | Casual hourly rate (incl. 25%) |
|---|---|
| Level 1 – Introductory Educator | $32.74 |
| Level 2 – Educator | $33.75 |
| Level 3 – Qualified Educator | $36.90 |
| Level 4 – Experienced Educator | $39.38 |
| Level 5 – Advanced Educator (Diploma) | $41.55 |
| Level 6 – Room Leader | $43.48 |
| Level 7 – Assistant Director | $45.46 |
| Level 8 – Director | $52.41 |
Casual loading does not apply on top of weekend/public holiday penalty rates — the penalty percentages already account for the appropriate compensation.
Junior pay rates — full-time & part-time
Junior percentages apply only to Children's Services Employee Levels 1 and 2. Junior employees at Level 3 and above must be paid the applicable adult rate. Junior percentages are calculated from the corresponding Level 2 adult rate.
| Age | % of Level 2 adult rate ($27.00) |
|---|---|
| 16 years and under | 70% |
| 17 years | 80% |
| 18 years | 90% |
Employees aged 19 and over must be paid the applicable adult rate.
Worker retention payment minimum rates
The WRP is a Commonwealth grant program, not an award variation. For services participating in the WRP, the safest compliance approach is to use the Department of Education's published WRP minimum-rates table — not a self-calculated "award plus 15%" shortcut.
Important: The Department of Education's WRP minimum rates did not change when the award changed on 1 March 2026 — the table absorbed the impact of the gender undervaluation proceedings for the period 1 March 2026 to 30 June 2026. For example, old Level 3.4 / new Level 5—Advanced Educator: award rate $33.24, WRP minimum $36.41.
Note on WRP eligibility: The Fair Work Ombudsman notes that an award on its own does not satisfy WRP funding eligibility requirements. Services need a legally enforceable workplace instrument that meets the WRP payment conditions, including pay obligations through to at least the end of the grant period.
Use the Pay and Conditions Tool (PACT) to check individual employee minimum entitlements.
Casual rates under the Children's services award
Casual employees under the Children's Services Award receive a 25% casual loading and must be paid for a minimum of two hours per engagement, with higher rates applying when overtime is triggered.
Casual loading (25%) explained
Casuals receive a 25% casual loading on each ordinary hour worked. This loading compensates for the lack of paid leave entitlements.
Minimum engagement — 2 hour rule
Casual employees must be paid for a minimum of 2 hours per engagement. Even if a casual works only 1 hour, they must be paid for 2 hours. Note: If an employee works on a Saturday, Sunday or public holiday, a minimum payment of four hours' pay applies.
Casual overtime rates
| When | Casual rate |
|---|---|
| First 2 hours of overtime | 175% |
| After 2 hours of overtime | 225% |
Casual loading does not apply on top of overtime rates — the percentages above are standalone rates.
Casual conversion under the Children's services award (updated 2024–2025)
Under the NES "employee choice pathway", eligible casuals can give written notice to change to full-time or part-time employment if they have been employed for at least 6 months (12 months for small business employers) and believe they no longer meet the casual employee definition, subject to the Fair Work Act rules and transitional arrangements. Employers must provide information about conversion rights. This change affects rostering and workforce planning for services with long-term casual employees.
Any request for conversion must be assessed in accordance with the Fair Work Act 2009 and the Children's Services Award, including the Award's definition of casual employment and applicable response requirements.
Casual engagement and conversion rules also feature prominently in other modern awards with large casual workforces. See also: casual employment rules in the Hospitality Award and casual conversion provisions in the Fast Food Award.
Ordinary hours and rostering rules — Children's services award
Ordinary hours are generally worked Monday to Friday between 6:00am and 6:30pm, subject to the specific rostering, agreement, and operational arrangements permitted by the Award. Hours worked outside this span, or in excess of daily limits, may trigger overtime or shiftwork provisions.
Ordinary hours span (6:00am–6:30pm, Monday–Friday)
For non-shiftwork operations, ordinary hours are generally worked Monday–Friday, between 6:00am and 6:30pm. Using award-aware rostering software can help ensure shifts align with Award requirements.
Maximum daily hours and broken shifts
- Usually up to 8 hours/day (agreement can allow up to 10 hours/day)
- Broken shifts: spread can be no greater than 12 hours/day
- Part-time employees must be rostered for a minimum of two consecutive hours on any shift
Part-time additional hours (common compliance risk)
Part-time employees can work extra hours up to 8 in a day at ordinary time only if the extra time is during ordinary hours of operation. Maintaining digital employment contracts with clear part-time agreement details helps ensure accurate entitlement tracking.
When overtime is triggered for part-time employees
Overtime applies when part-time employees work beyond 8 hours in a day or outside the ordinary hours span. This is a common compliance risk area.
Non-contact time entitlements
The Award includes paid non-contact time for employees with specific program responsibilities. These entitlements are separate from ordinary rostered hours and must be provided within the working week.
- 2 hours per week for any employee responsible for preparing and evaluating individual children's developmental programs (clause 25.3)
- Additional 2 hours per week for the employee nominated as the Educational Leader under the National Quality Framework (clause 25.4)
- These entitlements are cumulative — an Educational Leader who also carries program responsibility receives 4 hours of non-contact time per week
Rostering tip: Non-contact time must be factored into weekly rosters, not treated as optional or covered by meal breaks. Failing to provide it is an underpayment risk. Award-aware rostering software can help schedule this automatically.
Overtime rates under the Children's services award
Hours worked outside ordinary hours may attract overtime, depending on the employee's classification, employment type, agreed working arrangements, and the circumstances in which the hours are worked. Higher penalty rates are payable depending on timing and employment type.
When overtime applies (full-time & part-time)
Overtime is payable for hours worked:
- For full-time employees: hours worked outside ordinary hours may attract overtime under clause 23.1, while Saturday, Sunday, and public holiday work attracts the applicable weekend or public holiday rates under clause 23.5
- In excess of 8 hours/day (or 10 by agreement)
- In excess of 38 hours/week (or averaged equivalent)
Overtime rates — weekday, weekend & public holiday
| When | FT/PT Rate |
|---|---|
| Weekday (first 2 hours) | 150% |
| Weekday (after 2 hours) | 200% |
| Saturday (first 2 hours) | 150% |
| Saturday (after 2 hours) | 200% |
| Sunday | 200% |
| Public holiday | 250% |
Casual overtime rates
Casuals receive 175% for the first 2 hours of overtime, then 225% thereafter.
Overtime vs ordinary hours — common mistakes
A common mistake is treating all "after-hours" work as penalty rates when it should be overtime. This Award operates primarily on ordinary hours span + overtime, not time-band penalties like some retail/hospitality awards. Automated award interpretation tools can help reduce errors by applying correct rates automatically.
Shiftwork provisions in the Children's services award
Shiftwork provisions and loadings apply only where employees are engaged as shiftworkers in accordance with the Award's definition and shiftwork arrangements.
Who is a shiftworker under MA000120?
Shiftworkers are employees specifically engaged to work shifts outside the ordinary hours span. Not all employees who occasionally work outside 6:00am–6:30pm are shiftworkers. Shiftwork provisions do not apply unless the employee is formally engaged as a shiftworker under the Award.
Shiftwork loadings explained
Shiftwork loadings apply based on shift definitions (early morning, afternoon, night shifts) with percentage loadings as specified in the Award.
Saturday and sunday shiftwork rules
Saturday ordinary hours for shiftworkers are paid at time and a half, with specific overtime handling. Sunday shiftwork has separate provisions.
Break entitlements under the Children's services award
Break rules are a frequent audit focus. Ensure your rostering complies with meal and rest break requirements.
Meal breaks
Employees cannot work more than 5 hours without an unpaid meal break (30–60 minutes). There is a limited option to forego the meal break for shifts not exceeding 6 hours.
Paid rest breaks
Paid rest breaks depend on shift length. For example, a 10-minute paid rest break applies for shifts of 4+ hours.
Minimum break between shifts
Employees are entitled to a minimum 10-hour break between work periods. This can be reduced to 8 hours by agreement.
Allowances under the Children's services award
Allowances vary by circumstance and are updated periodically. Check the official pay guide for current amounts.
All-purpose allowances
Some allowances are "all-purpose" and must be included in calculations for overtime, leave loading, and other entitlements.
Expense-based allowances
Expense-based allowances reimburse employees for work-related costs and are generally not included in overtime calculations.
How allowances affect overtime calculations
All-purpose allowances must be included in the base rate for overtime calculations. Ensure your payroll system handles this correctly.
Penalty and allowance structures vary significantly between awards and must always be applied by reference to the correct instrument. See also: penalty rate structures in the Restaurant Award and allowances and penalties under the General Retail Award.
Leave entitlements — Children's services award & NES
Most leave entitlements sit in the National Employment Standards (NES), with Award-specific interaction rules.
Annual leave and loading
Annual leave is provided under the NES. The Award may include provisions for annual leave loading. Check how ordinary hours patterns affect leave payments.
Personal/carer's leave
Personal/carer's leave entitlements are set by the NES (10 days per year for full-time employees).
Long service leave (state-based interaction)
Long service leave is governed by state/territory legislation, not the Award. Requirements vary by location.
Children's services award compliance checklist (2025/26)
Use this checklist as a quarterly internal audit tool to verify Award compliance. Businesses operating across multiple industries often need to manage different award rules simultaneously — see also Pharmacy Award pay rates for multi-sector compliance examples.
Children's services award compliance checklist
Coverage checks
Classification checks
Pay & payroll system checks
Record-keeping obligations
Common Children's services award mistakes (and how to avoid them)
Most underpayments in early childhood services arise from misclassification, misunderstanding ordinary hours, or failing to apply Worker Retention Payment minimums correctly. These errors are avoidable with proper Award interpretation and payroll controls.
1. Misclassification after the 1 March 2026 restructure
Classifying employees against the old pay-point model (Level 3.4, 4.1, 5.4, 6.4) when the Award now uses an 8-level CSE structure. For example, Level 5 – Advanced Educator requires a Diploma-equivalent qualification. Verify qualifications against the new level definitions, and check Schedule I translation rules for any employee employed before 1 March 2026.
2. Paying Award but missing WRP minimums
If your service receives WRP funding, you must pay at least 15% above Award from 1 December 2025. Check the Department of Education's published minimum rates — "paying above Award" isn't enough if you're below the WRP floor.
3. Incorrect handling of casual overtime
Casual overtime is 175%/225% — not base rate plus 25% loading plus overtime. The casual loading is already factored into the casual overtime rates.
4. Ordinary hours assumed incorrectly
Ordinary hours are 6:00am–6:30pm Monday–Friday for non-shiftworkers. Work outside this span is generally overtime (or shiftwork if that arrangement applies). Don't assume evenings/weekends are just "penalty rates" — this Award uses overtime, not time-band penalties. Using automated roster warnings can help flag minimum engagement and overtime breaches before they occur.
5. Assuming all employees automatically move to the standard new level rate
Schedule I of the Award contains retained-rate rules for employees who were classified under the old structure on 28 February 2026. Some employees (particularly those previously at Level 3A, Level 3.3, Level 4A.5, or certain Director pay points) may have a pre-1 March 2026 minimum rate that is higher than the standard new level minimum. Paying only the new level rate without checking Schedule I may constitute an underpayment.
Enterprise agreements and other industrial instruments
This guide covers the Children's Services Award 2010 (MA000120). However, an enterprise agreement or other instrument may apply instead.
Where an enterprise agreement or other lawful industrial instrument applies, Award rates and conditions may be displaced. Always confirm which instrument covers each employee before applying pay rates.
Key takeaways for early learning employers
- Confirm the Children's Services Award 2010 (MA000120) applies to your service
- Classify employees against the new 8-level CSE structure (effective 1 March 2026) — not the old pay-point model and not job titles
- Apply the 1 March 2026 rates: Level 1 $26.19 through Level 8 $41.93
- For employees employed before 1 March 2026, check the Schedule I translation and retained-rate rules before applying the new level minimum
- If WRP-eligible, verify pay against the DoE's published minimum rates table — not just "Award + 15%"
- Configure ordinary hours span (6:00am–6:30pm Mon–Fri) correctly
- Apply overtime rates (not penalty rates) for work outside ordinary hours
- Casual loading is 25%; minimum engagement is 2 hours (4 hours on Sat/Sun/public holiday)
- Keep accurate time and wage records for 7 years
- Intentional underpayment is a criminal offence from 1 January 2025 — treat compliance as non-negotiable
Final note and sources of authority
Nothing in this guide limits or alters an employer's legal obligations. Only the Fair Work Commission or a court can make a binding determination of Award coverage or employee classification.
About this guide
This guide is prepared using the consolidated Children's Services Award 2010 (MA000120), Fair Work Ombudsman pay guides, and real-world payroll scenarios from early learning services across Australia.
Sources of authority
- Official Award text: Children's Services Award 2010 (MA000120) — consolidated Award (Fair Work Commission)
- Full Award PDF: MA000120 full Award PDF (Fair Work Commission)
- Pay Guide: Pay Guide — Children's Services Award (MA000120) (Fair Work Ombudsman)
- Pay guides directory: Fair Work pay guides (latest versions)
- Pay calculator: Pay and Conditions Tool (PACT) — calculate minimum pay/penalties
- WRP overview: Worker Retention Payment (WRP) — overview (Department of Education)
- WRP minimum rates: WRP minimum rates (incl. 15% above Award) — Department of Education
- WRP guidance (Fair Work): Early childhood education and care — Worker Retention Payment (Fair Work Ombudsman)
- 1 March 2026 Award changes: Children's Services Award changes from 1 March 2026 (Fair Work Ombudsman)
- ECEC Wage Justice Act: Early Childhood Education and Care Wage Justice Act 2024 (Department of Education)
Industries using this award
Explore rostering solutions for businesses covered by the Children's Services Award
Frequently asked questions
- The Children's Services Award 2010 (MA000120) covers employees in early childhood education and care services, including childcare centres, preschools, kindergartens, and outside school hours care (OSHC) programs. It applies to early childhood teachers, centre directors, educators, educational leaders, certificate-qualified staff, and assistants. The Award sets minimum pay rates, penalties, allowances, and employment conditions for the sector. It applies to both for-profit and not-for-profit services across Australia.
- From 1 March 2026, the Award uses a new 8-level CSE structure. Level 1 – Introductory Educator: less than 12 months' experience. Level 2 – Educator: 12+ months' experience without a formal qualification. Level 3 – Qualified Educator: holds an approved Certificate III. Level 4 – Experienced Educator: Certificate III plus 4 years post-qualification experience at Level 3. Level 5 – Advanced Educator: Diploma-level qualification. Level 6 – Room Leader: responsible for a room or program area. Level 7 – Assistant Director: listed coordinator or equivalent. Level 8 – Director: centre director. Classification is based on qualifications and actual duties — not job titles. For employees employed before 1 March 2026, check the Schedule I translation rules as some may have a retained minimum rate higher than the standard new level.
- The 2025/26 rates took effect from the first full pay period on or after 1 July 2025, following the Annual Wage Review. From 1 December 2025, eligible services must also pay at least the Worker Retention Payment minimum rates (15% above Award). A further significant change occurred on 1 March 2026, when the Award introduced a new 8-level CSE classification structure with new minimum rates — replacing the old multi-level pay-point model. Employers must be applying the 1 March 2026 rates and the new classification structure now.
- Each classification level has multiple pay points based on years of experience in that role. For example, a Level 2 (Certificate III) educator might start at pay point 1 in their first year, progress to pay point 2 after one year, and so on. Employers must track each educator's experience and progress them through pay points annually. Failing to apply pay point progression is a common underpayment issue. Check the Award or Fair Work pay guide for the specific pay point structure for each level.
- Yes, absolutely. All part-time arrangements must be documented in writing before the employee starts work. The agreement must specify regular rostered days, start and finish times, and total ordinary hours per week or roster cycle. This defines when overtime applies and protects both employer and employee. Without a written part-time agreement, you risk underpaying employees or incorrectly calculating overtime. This is a high-risk compliance area in children's services.