Aged care workers given fourth pay rise after Fair Work Commission finding

A fourth pay rise for aged care employees is set to take effect on Wednesday, after the Fair Work Commission handed down an award wage rise for 400,000 workers in the sector.

The move will mean a level two registered nurse – the most common level among registered nurses – will earn an extra $60.20 a week, while enrolled nurses will receive an extra $62.20 a week.

Personal care workers will also receive a bump to their pay of $39.50 per week.

The changes to the award bring the government’s total sector spend to close to $18bn after the Fair Work Commission (FWC) handed down a decision on a value case brought by the Health Services Union in 2020.

Jim Chalmers said workers in the sector were doing an “incredible job” and deserved the successive pay rises.

“This investment recognises the big contribution that aged care workers make to our economy and community and will help to create a bigger incentive for young Australians looking for a rewarding career, to pick aged care in the future,” the Treasurer said.

A 15 per cent wage rise took effect in July 2023, before the FWC handed down a final determination with increases of 3 per cent to 13 per cent on top of the initial raise for non-direct and direct-care workers.

Some of these increases took effect on January 1 this year, with the remaining raises set to be implemented on Wednesday.

Employment Minister Amanda Rishworth said the FWC decision and the Government’s move to bankroll the wage increases were significant steps to tackling the gender pay gap.

“Reducing the gender pay gap was one of the key reasons the Government funded the 15 per cent pay increase for aged care carers,” she said.

“The Fair Work Commission recognised the historical gender-based undervaluation of work in aged care, leading to significant wage increases that our government funded.”