Aged care providers are facing the biggest shake-up to awards and pay since the 15% wage increase in 2023. From January 2025, further increases and reclassifications are being implemented under changes to key industrial awards.
The Fair Work Ombudsman has signalled that it will be targeting aged care providers for compliance checks in 2025. This means that now is the time to check that you’re up to date with workers’ entitlements and classification changes — and that your systems are keeping pace.
This article outlines the key changes to aged care awards in 2025 and what providers need to know to stay compliant.
From 1 January 2025, many aged care workers will receive further wage increases in addition to the 15% boost introduced in 2023. These new increases apply to workers under the Aged Care Award 2010 and the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award).
The increases apply to a wide range of roles, including:
Some specific increases include:
For some workers, the wage increases are being phased in across two stages:
Providers should review the applicable awards to determine which roles are affected by this two-stage implementation and ensure payroll systems are updated accordingly.
The 2025 changes also involve transitions in award coverage for some direct care roles. Depending on their work setting:
The award a worker falls under depends on whether they work in residential aged care or in home care. These changes will impact minimum pay rates, allowances, and working conditions for many staff.
These changes are more than administrative updates — they carry real legal and financial consequences. If your payroll systems or classification processes are out of date, you risk underpaying staff and facing enforcement action by the Fair Work Ombudsman.
To avoid this, aged care providers should:
For further details, refer to the following resources: