Long-awaited pay rises roll out for hundreds of thousands in aged care

Hundreds of thousands of aged care workers have received another significant pay rise, a move celebrated by both the federal government and unions as a crucial step in addressing the sector’s chronic underpayment and staffing crisis.

The increase, which took effect today, is the latest stage of a landmark Fair Work Commission (FWC) decision. It delivers the final scheduled pay rise for assistants in nursing and personal care workers, and the second of three increases for aged care nurses.

For a registered nurse on the most common award level, the increase amounts to an extra $60.20 per week, while enrolled nurses will see a $62.40 weekly boost and personal care workers will receive an additional $39.50.

The Australian Nursing and Midwifery Federation (ANMF), which launched the Aged Care Work Value Case in 2021, hailed the outcome as a long-overdue victory for a workforce that has been historically undervalued.

“This is a significant win for the ANMF and our members working in aged care,” said Federal Secretary Annie Butler. “We argued that the work of nurses and carers in the aged care sector had never been properly valued due to gender-based undervaluation… The determination by the FWC finally recognises the true worth of Australia’s nursing and care workforce.”

The government, which has committed $17.7 billion to fund the wage increases, framed the move as central to its economic plan and efforts to close the gender pay gap.

“Aged care workers do an incredible job and they deserve every dollar of this pay rise that we’re delivering,” said Treasurer Jim Chalmers.

Minister for Aged Care Sam Rae added, “Aged care workers deserve better pay and more recognition for the meaningful work they do. After a decade of decay under the Coalition, aged care workers were systematically underpaid and undervalued. That ended with the Albanese Labor Government.”

Both parties agree the pay rises are essential to making aged care a more viable and attractive career path, which is critical for retaining and recruiting desperately needed staff.

“These wage increases will not only provide some, long-overdue financial relief for our members and their families, but will also help retain and recruit the nurses and carers desperately needed to work across the sector,” Butler said.

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Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.