The 15% aged care pay rise is here, but what does that mean for you? Will you receive more money in your next payslip, or are you likely to miss out? HelloCare has the answers to your burning questions.
The aged care pay rise will primarily benefit direct care workers in residential aged care and home care settings, as long as they are covered by the:
The pay rise covers the base rate for full-time workers plus the rates for part-time and casual workers.
Carolyn Smith, United Workers Union Aged Care Director, said the pay rise is long overdue recognition for aged care workers who are often undervalued and underpaid.
“The 15% pay increase won in the work-value case brought by the Health Services Union, the Australian Nursing and Midwifery Federation and United Workers Union gives these workers the respect they have deserved for so long,” Ms Smith said.
“When aged care workers were working double shifts in sweltering heat at the height of the Omicron crisis in February last year, the whole aged care system was in crisis and 75% of our members surveyed said they intended to leave the sector.”
Support staff such as cleaners, administration and gardeners/maintenance workers, are not included in the 15% pay rise. The FWC is yet to decide on whether increases will be passed on to all aged care workers or not.
As per the FWC, your pay rate will increase from the first full pay period on or after June 30, 2023.
Eligible award-based aged care workers will see their hourly rate increase by more than 20% as a result of the combined impact of the aged care pay rise and national minimum wage increase.
The United Workers Union (UWU) has provided several examples of how this might look after surveying over 1800 residential aged care workers. UWU found that:
In addition, the Government has provided several examples of its own:
To find your exact pay guide, visit the FWC website.
Under the Annual Wage Review, the national minimum wage increased on July 1, 2023, rising by 5.75%. As a result, the national minimum wage has improved to $23.23 per hour, up from $21.38. The increase is applicable from an employee’s first full pay period starting on or after July 1, 2023. The Annual Wage Review is an additional increase which means some aged care staff are looking at a 20% or more increase in their hourly rate.
However, as support workers within the industry will not receive anything more than a minimum wage increase, UWU has called for their future inclusion in the 15% increase.
“Anyone who has walked into an aged care facility knows how vital support workers are in terms of providing quality care, and we expect the Fair Work Commission to reflect that in its decision,” Ms Smith said.
“A level 2 cleaner on the award can expect to see their wage increase by $1.36 an hour, or an extra $52 a week under the 5.75% award-based increase. While that’s much better than what the bosses were asking for in the minimum wage case, the wages of these essential workers in aged care are not keeping up with inflation and these workers are falling further behind.”
Aged care workers paid under an EBA could see a 15% increase in their wages as aged care employers will still receive the additional funding regardless of an EBA being in place. However, not all providers are required to pass on the full 15% if their staff earn above award rate. The Government has asked providers to seek additional guidance as to whether they will or will not have to pass it on.
If you are under an EBA, it’s recommended you compare your EBA rate to your relevant award rate as you should receive the higher of the two.
If you have any additional questions it’s best to speak with your provider directly. The Fair Work Commission also has all the relevant information, and you can contact them or your union if your provider cannot answer your questions.
I’m an AIN in aged care for 17 years working in private sector. We have been told that because we receive above award wages already being $25.50 ph that we won’t see much difference to our pay.. is this the case
I am a level 3 casual care worker what rate per hour should I be receiving?
Having heard for months about this increase to all aged care workers and now read the final report sorry to say it sucks. I am a maintenance worker of which in most homes there is only 1 person maybe 2 or 3 at the very most depending on size. To read this — Support staff such as cleaners, administration and gardeners/maintenance workers, are not included in the 15% pay rise —. I can tell you that during the pandemic most maintenance workers did more than normal and still do in general as companies would not visit aged care sites unless it was a safety concern. The above people not getting the rise also left aged care due to the poor salaries being offered. You really need to get on the ground floor and see what really goes on. I was 1 maintenance guy servicing all floors of a 130 resident property with stock and removing clinical waste etc. as well as trying to do my normal job. Aged care is a massive business these days and each and every person is as important as the next to make these home run smoothly.
I totally hear you David. I am in the kitchen as KA and we are both in the same boat! His can they really discriminate who is entitled to receive the 15% increase. As you said these facilities couldn’t operate without you, without their meals together I provide or the laundry staff who clean their sheets every single day! It’s a cop out to just Band-Aid the whole aged care problem. So so sad isn’t it.