The Fair Work Commission (FWC) has handed down the latest round of aged care wage increases, stemming from the Work Value cases first initiated by the Health Services Union in 2021.
The new rates for direct-care workers workers under the Aged Care and the Social, Community, Home Care and Disability Services (SCHADS) Awards range from:
- $1,182.80/week for an introductory-level worker (a 5.7% increase from 1 January 2025 rates), and
- up to $1,472.00/week for a team leader (a 7.9% increase).
This increases represent the second and final tranche of the Stage 3 pay rise of between 3% and 13% (in addition to the original 15%), with the first tranche paid to eligible workers on 1 January 2025.
While non-direct care employees received a pay rise on 1 January 2025, they are not entitled to a further increase next month.
60,000 aged care nurses due for pay rise
The FWC also released wage increases under the Nurses Award, including:
- $1,446.50/week for an RN in their first year of employment (a 3.9% increase from 1 March 2025 rates), and
- $2,542.40/week for a level 5 RN (a 1.8% increase).
The increases represent the second of three FWC pay rises under the Nurses Award of between 4% and 25%, with the first paid on 1 March 2025 and the third and final paid on 1 August 2026. The increase was also in addition to the initial 15% increase.
The FWC's work value wage rises have so far cost the Federal Government a total of $17.7 billion, including $11.3 billion for the initial 15% increase.
The FWC's aged care work value case
- The Health Services Union first launched the work value case with the Fair Work Commission in November 2020, seeking a 25% wage rise for aged care workers on the basis that working in aged care had been undervalued due to gender-based undervaluation and that the work has increased in complexity and skill in recent decades.
- In May 2021, the Australian Nursing and Midwifery Federation applied to the FWC for a 25% pay rise for nurses working in aged care.
- In November 2022, the FWC issued its Stage 1 decision, awarding a 15% interim increase to direct-care nurses, residential aged care workers and home care workers, but acknowledged that further increases were warranted.
- Stage 2 was announced in February 2023, confirming the 15% wage rise, and expanding it to include non-direct care aged care workers. These wage rises took effect on 1 July 2023.
- Stage 3 was the FWC's final determination in the aged care worker work value case. Wage rises of between 3% and 13%, on top of the initial 15%, were awarded to non-direct and direct-care workers, to be paid in two stages - on 1 January 2025 and then, for some workers, on 1 October 2025.
- In December 2024, Nurses were awarded a 4-25% increase in addition to the original 15%, paid in three tranches: 1 January 2025, 1 October 2025, and 1 August 2026.
