15% wage increase awarded to Aged Care workers

As a result of a work value case that the Fair Work Commission (FWC) has been running, there will be a 15% minimum wage increase granted to certain employees in the aged care sector. Here are the details of that decision and who it effects.

Who does the increase effect?

The increase applies to employees who perform direct care roles under the following Awards and classifications:

• • Aged Care Award 2010 – Applies to recreation/lifestyle activities officers, personal care workers, and the most senior food service employee (classified as levels 4–7) in particular aged care facilities
    
  • Nurses Award 2020 – Nursing assistants, enrolled nurses,registered nurses,and nurse practitioners working in aged care
  • Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS) – Home care workers working in aged care

The increase does not apply to other supporting employees such as administrative/clerical employees or chefs and cooks who are not the most senior food service employee at a particular aged care facility or site.

When does it come into effect?

The Federal Government had been pushing to have the 15% applied over 2 years with a 10% increase from July 2023 and a further 5% increase coming in July 2024. The FWC, however, decided to introduce the entire 15% increase from the 30/6/23 meaning employers will need to ensure that they have applied the full 15% increase from the first full pay period after that date.

More to come

The FWC has not concluded it’s work value case into the aged care industry and is still considering some matters including how the three Awards above are structured and how they classify employees, as well as whether further increases are needed to other employees in the aged care sector.

There is also some uncertainty as to how the increase will interact with the FWC’s Annual Wage Review and whether the 15% will be the entirety of the increase for those workers or if they will also get the increase that will apply to the minimum rates under Modern Awards.

For more information on this topic please visit the Fair Work Ombudsman’s website here or if you need further assistance please give us a call on 1300 108 488.