The Fair Work Commission (the Commission) has handed down two wage increases that affect the aged care sector.

1. The Commission has made a decision to increase minimum wages by 15% for aged care sector workers covered by certain awards. The increase takes effect from the first full pay period commencing on or after 30 June 2023.
2. As part of its Annual Wage Review 2022-23, the Commission has announced a 5.57% increase to all modern award minimum wages. The increase takes effect from the first full pay period commencing on or after 1 July 2023. This also applies to the three awards affected by the aged care decision above. This rise to the minimum modern award wage is in addition to the 15% minimum wage increase for some employees working in aged care.

Today, we discuss the 15% wage increase for aged care sector workers.

Who Gets the Increase?

The 15% wage increase applies to eligible workers covered by the following awards:

• Aged Care Award 2010: Applies to personal care workers and recreation/lifestyle activities officers and the most senior food services employees (levels 4-7) working at a particular aged care facility or site.
• Nurses Award 2020: Applies to nursing assistants, enrolled nurses, registered nurses, nurse practitioners working in aged care.
• Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS): Applies to home care workers working in aged care.

Who the Increase Does Not Apply to

The 15% increase does not apply to:

• support and administration employees; or
• chefs and cooks covered by the Aged Care Award who are not the most senior food services employee working at a particular aged care facility or site.

Why is This Happening?

The Health Care Services Union and the Australian Nursing and Midwifery Federation (ANMF) started this case (the Work Value Case) in 2021 in response to Recommendation 84 of the Royal Commission into Aged Care Quality and Safety which found that the work of nurses and carers was under-valued and under-paid. Although changes have been made, this case has not yet finished, and the next stage of these proceedings will consider classification definitions and structures in the three awards and further wage increases for all aged care award covered employees. The unions have indicated that they will continue to push for a 25% minimum wage increase and for the pay increase to be extended to all aged care workers, including cleaners and administrative staff for example.

Enterprise Agreements

The increase in minimum wage rates won’t automatically apply to rates in enterprise agreements. The only affect this change will have on enterprise agreements is that the minimum wage rate in an enterprise agreement cannot be less that the new minimum wage rate set under the awards.

The ANMF is advocating that workers on enterprise agreements whose wages are higher than the award should also receive a wage increase. If an aged care worker is paid above award rates, providers will still receive additional wage funding for that worker, and the ANMF believes that providers must pass this onto workers and not keep any additional funding.

Next Steps for Providers

The Government expects that providers will communicate to workers and employee representatives the amount of funding received and the proposed allocation to wages and on-costs. Providers should communicate to workers their individual wage increases and this should include a letter or email setting out their old and new pay rate. The Government also recommends that providers, where possible, undertake workforce communications in consultation with the relevant unions and other employee representatives. Providers should ensure that increases are included in any enterprise bargaining or interim agreements as soon as practicable.

More Information

Department of Health and Aged Care: Aged Care Worker Wages - Guidance Document. This document outlines in a table the new minimum award rates applicable to different aged care sector workers.