The 15% Aged Care Pay Rise in 2023 Could Jump to 25% in 2024

First published: October 2023, revised February 2024

As part of the aged care reform, the 15% aged care pay rise that was implemented on the 30th of June 2023 is being called increase to 25% in 2024.

Last year, the Department of Health and Aged Care, in conjunction with the Fair Work Commission funded the pay rise decision to increase the minimum wage of those working within the aged care sector irrespective of individual pay reviews.

More than 250,000 workers benefitted from the pay rise in 2023, and at present it applies to those working under the:

• Aged Care Award 2010
• Nurses Award 2010
• Social, Community, Home Care and Disability Services Industry Award 2010

There were, however, some who missed out. Those who work in aged care but not under these awards (grouped as ‘indirect care workers’ such as administrative employees, and chefs and cooks not in a senior position) were ineligible. Uniting NSW/ACT, one of Australia’s largest non-for-profit organisations that specialise in areas such as aged care, independent living, and community services welcomed the 15% aged care pay rise but anticipated the need for a further increase. Tracey Burton, Uniting’s Executive Director, expressed disappointment at those not included, claiming the decision has been ‘harmful to morale and motivation’.

The Health Services Union in September 2023 argued that direct care workers should receive a 25% increase, with indirect care workers eligible for a 10% pay rise. This is to combat a long-standing pay gap between aged care workers and other sectors of the healthcare industry.

Which aged care workers did receive the pay rise? 

Those who did receive the aged care pay rise in 2023 were:

• Registered nurses (RNs)
• Enrolled nurses (ENs)
• Assistants in nursing (AINs)
• Personal care workers (PCWs)
• Head chefs & senior cooks
• Recreational activities officers
• Home care workers

The Annual Wage Review decision that was implemented in 2023 stipulated that the minimum award rates would increase by 5.75% , which was additional to the 15% interim rise. The application for award rate amendments was first submitted in 2021, with the decision to grant this being made in November 2022. 

Depending on an aged care worker’s wage, the total pay rise has resulted in them receiving up to an additional $6.41 per hour. For minimum wage casual workers, the hourly rate has increased from $22.67 to $26.07, translating to a weekly pay rise of $136. A permanent full-time aged care registered nurse can now expect to earn a full-time salary of between $85,000 – $100,000. This has been a great result for those aged care workers who were eligible, but leaves indirect care workers behind.

How has the pay rise benefitted the aged care industry so far?

The aged care sector is an essential industry that is growing rapidly, with the aged care worker shortage being regularly documented. The aged care pay rise has supported and hopes to support:

• Increasing workforce attraction and retention: Pay rises were introduced to help attract and retain skilled workers. Fair compensation is essential to motivate workers and ensure the availability of a dedicated and competent workforce.
• Improving quality care and compliance: A skilled and diverse workforce is vital for delivering safe, high-quality services. Fair wages hope to lead to motivated staff working in the sector and hopefully will lead an aged care home to success.
• Meet nurse care and increased care minutes requirements: From July 2023, residential aged care homes were legally required to have a nurse on site and on duty 24/7. In October 2023, the number of minutes aged care workers are required to deliver care to residents per day increased to 200, with 40 of these being from a registered nurse. As aged care workers are now more vital to our society than ever before, the pay rise has been a way to show worker value and appreciation to meet government standards and boost workforce happiness.

The Department of Health and Aged Care released a ‘15% aged care pay rise satisfaction survey‘ in November 2023, which will shed more light on how successful the pay rise has been in regards to workforce retention. As of February 2024, we are still waiting for the results of this survey.

What are the aged care pay rise predictions for 2024?

The Annual Wage Review, usually taking place between March and June, reviews Modern Award Minimum Wages (the documents that set out minimum terms and conditions of employment). Once the outcome of the discussions is finalised, the decision comes into effect on the 1^st of July of the following year. As of yet, there hasn’t been any news on what the next pay rise will hold, and whether it will be the 2024 financial year that we will see a further increase.

The Department of Health and Aged Care pledged to invest $2.2 billion over four years, starting in 2023, that will contribute towards:

• Wage increases
• AN-ACC funding model (the government system that provides subsidies to aged care providers)
• Support the care minute decision from October 2023

This is a positive outcome and one that displays recognition of aged care staff and the importance of the frontline workers to the industry.

Some are calling for a 25% wage increase. The HSU (Health Services Union) submission to the Fair Work Commission details 97.1% of respondents are looking to secure the full 25%, and 76% would consider leaving the industry if their pay doesn’t increase by this significant amount. Back in 2021, the Royal Commission into Aged Care Quality and Safety admitted that “a wages gap exists between aged care workers and workers performing equivalent functions in the acute health sector”. It seems that the 15% pay rise isn’t enough to truly value the work that aged care professionals do.

What does the future for aged care workers look like?

Aged care is a growing industry with strong career progression and an array of job roles to choose from. Supporting Australia’s elderly population is integral to building a functional and advanced medical system. Given that it is projected 6.6 million Australians will be aged 65 and over by 2041, developing a sustainable and well rewarded workforce needs to happen now.

This commitment to better and fairer wages for aged care workers is a significant step towards improving the aged care system, and we champion the increase for all our hardworking nurses, care givers and support staff. The Aged Care Act is currently being reviewed and the rewrite date is set to commence from the 1^st July 2024, so change is happening. If you are considering a career in aged care, now is the time to get involved.

Looking for an aged care job? We are specialists in aged care recruitment. Contact us today.