Feb 18, 2025

Aged care nurses to receive wage increases from 1 March 2025

Aged care nurses to receive wage increases from 1 March 2025
The Australian Government is increasing wages in three stages from March 2025 to August 2026. [iStock]

Registered Nurses (RNs) and Enrolled Nurses (ENs) working in aged care will see their wages rise from 1 March 2025 as part of the Australian Government’s commitment to fair pay and workforce retention in the sector.

This increase follows the Fair Work Commission’s (FWC) 6 December 2024 decision under the Aged Care Work Value Case, which aims to ensure aged care nurses receive the full benefit of government funding and help attract and retain skilled professionals in the field.

Building on Previous Wage Increases

This decision continues the government’s efforts to improve aged care wages, building on:

  • A 15% minimum award wage increase for aged care workers, including nurses, implemented on 30 June 2023 (Stage 2).
  • Additional minimum award wage increases for many other aged care workers that took effect on 1 January 2025 (Stage 3).

Ensuring fair wages is a key part of strengthening the aged care system, recognising the complex and often undervalued nature of aged care work.

A well-compensated workforce contributes to better care standards, including 24/7 registered nurse coverage, increased care minutes for residents, culturally safe practices, and improved transparency across the sector.

New Classification Structures and Phased-In Increases

The wage increases will be introduced in three equal tranches:

  1. First full pay period on or after 1 March 2025
  2. 1 October 2025
  3. 1 August 2026

Alongside the pay rises, new classification structures will be introduced into the Nurses Award 2020, requiring many nurses to be reclassified. Employers must ensure that employees are correctly transitioned to the new classifications when implementing pay increases.

Providers will need to follow Fair Work Commission guidelines to ensure compliance.

What This Means for Aged Care Nurses

From 1 March 2025, aged care RNs and ENs covered by the Nurses Award 2020 will receive increased minimum award wages. Employers must ensure they comply with these changes and properly classify employees under the new system.

The Australian Government expects providers to:

  • Pass on all additional funding to RNs and ENs through wage increases and related costs (e.g., superannuation, leave entitlements, and allowances).
  • Work with employees and their representatives, including unions, to ensure proper implementation.
  • Continue enterprise bargaining as usual, with separate periodic wage increases funded from the provider’s own revenue.

Funding to Support Wage Increases

To help aged care providers meet these increased wage costs, the government will boost funding for both residential aged care and Home Care Packages:

  • Residential aged care: The Australian National Aged Care Classification (AN-ACC) price will increase from 1 March 2025.
  • Home Care Packages: Subsidies will increase from 1 March 2025.

Provider Accountability and Workforce Communications

Aged care providers must:

  • Inform employees in writing about their individual wage increases and classification changes.
  • Engage with employees and unions to ensure transparency in how additional funding is distributed.
  • Continue to attest in their Quarterly Financial Report that all government funding allocated for wage increases is passed on to employees.

The government will publish providers’ attestation responses to ensure accountability and compliance.

Long-Term Benefits for the Aged Care Sector

These wage increases aim to address long-standing issues of undervaluation in aged care, improve gender equity, and help retain skilled nurses in the sector.

By ensuring competitive wages, the government hopes to enhance the quality and stability of aged care services, ultimately benefiting both workers and older Australians.

For further details, visit the Department of Health and Aged Care website.

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  1. My employer states that they will not be passing on the wage increase to EN’s and RN’s.

    I work at a 80 bed facility in Rural SA

    My employer states that the pay rise will only be paid if and when the government funding commences.

    This has led to myself and other staff member to be looking for other work stating immediately which is had to take after working here for 15 years.

    I feel distress and undervalued at their decision.

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