New Year Pay Rise Announced for Australian Home Care Staff

Home care workers in Australia’s aged care sector will see a boost in their wages from 1 January 2025, following the Fair Work Commission’s decision to implement further increases to award wages. This update builds on previous pay rises aimed at recognising the critical contributions of aged care staff.

The Department of Health and Aged Care (DHAC) has confirmed that the new changes will increase the Home Care Package subsidy by 0.93% from the start of 2025. This adjustment ensures providers can meet the new wage requirements without compromising the quality of care provided to older Australians.

The subsidy increase will see daily rates for care packages adjusted as follows:

• Level 1: From $29.01 to $29.28
• Level 2: From $51.02 to $51.49
• Level 3: From $111.04 to $112.07
• Level 4: From $168.33 to $169.90

How the Pay Rise Translates

Home care workers will receive wage increases ranging from $0.47 to $2.70 per hour, depending on their role and level of experience. For instance, a Level 2 worker with three months’ experience will see their hourly rate rise from $28.94 to $31.64, representing a significant increase of $2.70.

These changes affect a wide range of aged care roles, including personal care workers, assistants in nursing, home care workers, and recreational activities officers. Ancillary staff such as cleaners, gardeners, and food service assistants will also benefit from the updated rates.

To implement the wage increases, aged care providers may need to adjust their service charges. DHAC has urged providers to engage transparently with care recipients about potential price changes, including explaining the reasons for the adjustments and updating agreements accordingly.

Despite the potential for increased costs to care recipients, the government is keen to ensure that no disruptions occur in service delivery.

Building on Previous Increases

The January wage increase is part of a broader effort to address wage disparities in the aged care sector. It follows the landmark 15% wage rise granted to personal care workers, registered nurses, and others in 2023 as part of the Aged Care Work Value Case.

Additional pay rises will take effect on 1 October 2025, ensuring further support for the workforce. These staggered increases aim to sustain the aged care system’s workforce and attract more individuals to the sector, which is critical as Australia’s population continues to age.