Aged Care Pay Rise Increases in 2025

First published: October 2023, revised March 2025

As part of the aged care reform roadmap, a further aged care pay rise has been implemented this year. On 1 January 2025, a 3% increase was added to pay rates for general workers under the Aged Care Award. 

Aged care pay rise 2025 breakdown 

From 1 January 2025, general workers covered by the Aged Care Award received a 3% increase to their minimum pay rate. This included those working in aged care under the Social, Community, Home Care and Disability Services (SCHADS) Industry Award as well as workers covered in the aged care section of the Nurses Award. 

Further changes were seen on 1 March 2025, as the Nurses Award no longer covered nursing assistants who provide care in a residential aged care or home care setting. They are now covered by the Aged Care Award and the SCHADS Award, respectively, with pay points being adjusted as such. 

This is a positive outcome and one that displays recognition of aged care workers and the importance of their position in the industry. 

Aged care pay rise timeline

In previous years, the Department of Health and Aged Care, in conjunction with the Fair Work Commission funded the aged care 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 first aged care pay rise, which applied to those working under the: 

• Aged Care Award 2010 
• Nurses Award 2010 
• SCHADS Industry Award 2010 

There were, however, some who missed out. Those who worked 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 initially ineligible.  

Uniting NSW/ACT, one of Australia’s largest not-for-profit organisations that specialise in areas such as aged care, independent living, and community services welcomed the initial 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 had been ‘harmful to morale and motivation’.  

This decision has changed in 2025 with indirect care workers receiving a pay rise. 

Who receives an aged care pay rise in 2025?

All direct and indirect aged care workers will receive a pay rise in 2025. Previously, an aged care pay rise was only available for: 

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

This year, the aged care pay rise also applies to those working in general roles, such as gardeners, administrators and laundry assistants. 

What does the aged care pay rise look like for direct and indirect care workers?

Due to the aged care pay rise increases of 2025, an entry level casual aged care worker will now receive a minimum of $31.89 an hour, and a weekly minimum wage of $1,211 (based on a 38-hour week). A permanent full-time aged care registered nurse can now expect to earn an annual salary of between $85,000 – $100,000.  

Indirect care workers, who were not eligible in the first round of aged care pay rises, will now be working on increased rates from January 2025. They will receive a minimum of $973.40 per week (38 hour a week basis). 

Direct care workers will have received 50% of their aged care wage increases at the start of the year and will receive the last 50% in July 2025. 

How has the aged care pay rise benefitted the 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: aged care 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 aged care services. Fairer wages aim to lead to motivated staff working in the aged care sector and hopefully will lead residential aged care homes to success. 
• Meeting nurse care and increased care minutes requirements: care minutes continue to increase, going from 200 in 2023, to 215 in 2024. They will rise again in October of this year, and at present 44 of these need to be delivered by a registered nurse (and 10% from an enrolled nurse). As aged care workers are now more vital to our society than ever before, the aged care pay rise has been a way to show worker value and appreciation to meet government standards and boost workforce happiness. 

What does the future for aged care workers look like?

Aged care is a growing industry with strong career progression and a variety 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 aged care nurses, care givers and support staff. A new Aged Care Act, coming into effect on 1 July 2025, is responding to recommendations from the Royal Commission, to improve aged care for everyone involved. If you are considering a career in aged care, now is the time to make the change. 

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