Pay rise alert: What July 1’s minimum wage increase means for aged care & disability workers

From Monday, July 1, Australia’s minimum wage will officially rise to $24.10 per hour (or $915.90 per week), following a 3.75% increase announced by the Fair Work Commission.

However, before you celebrate, it’s essential to note that this doesn’t apply to everyone in the aged care and disability sectors.

Who does this apply to?

This increase only applies to:

• Employees on the national minimum wage
• Employees on award minimum wage rates, where those award rates are not already being increased under other sector-specific decisions

In our sector, this includes:

• Entry-level or junior personal care workers
• Kitchen hands, cleaners, laundry assistants, and reception staff who are paid at or near the minimum award level
• Some lifestyle assistants and disability support workers not covered under EBAs or specific enterprise agreements

If you’re employed under an enterprise bargaining agreement (EBA) or already receiving above-award rates, this national minimum wage increase may not apply to you.

Don’t assume you’re getting a pay rise

Many aged care and disability workers are employed under EBAs or awards that already exceed the national minimum wage, particularly in not-for-profit organisations or large providers

If you’re unsure, check your employment contract or ask your payroll manager what award or agreement you are under.

Key pay change details

• New national minimum wage: $24.10/hour 
• Applies from: First full pay period on or after July 1, 2025
• Expected increase for eligible workers: Around $33 extra per week (before tax)
• For those casual workers on the minimum wage, the 25% loading also increases the hourly rate to $30.13/hour

What you should do

• Check your award or agreement: Use the Fair Work Pay Calculator to confirm your classification
• Look at your pay slip:  If your pay doesn’t reflect the change and you believe it should, talk to your manager or HR.
• Stay informed: If you’re under an award due for a separate increase (like the Aged Care Work Value Case), further wage bumps may still be coming.

Why it still matters

Even if this increase doesn’t directly apply to you, it’s a positive signal for the broader care sector. Low-paid, undervalued roles — often in support services like cleaning, catering, and administration — are slowly being recognised.

The Health Services Union (HSU) welcomed the increase, saying it would help address cost of living pressures that are hitting care workers hard,” especially those in fragmented or insecure roles.

What’s next?

Further changes are still coming in aged care pay under the Fair Work Commission’s Work Value Case, especially for indirect care roles. These changes are being phased in through January 2026.

Bottom line

If you’re a cleaner, care worker, kitchen hand or lifestyle assistant earning minimum rates, this week may see a small but welcome bump in your pay. However, if you’re under an EBA or an above-award contract, this change may not be reflected in your bank account.

And that’s why it’s so important to know exactly where you stand. In aged care and disability, transparency about pay is just as essential as the work you do.