Increased aged care pay rise is a step in the right direction

The aged care workforce has achieved a big win after the Fair Work Commission (FWC) ruled it will pass on the interim 15% wage increase in full from June 30 despite the Government’s plans to roll it out in two phases.

Last December, the Government announced it would introduce a 10% pay rise from this July and a further 5% increase in July 2024.

But the FWC has reviewed the evidence and on Tuesday confirmed it would increase the minimum wage for the Aged Care Award, Nurses Award and Social, Community, Home Care and Disability Services Award (SCHADS Award) by 15% from June 30.

Direct care workers such as Registered Nurses, Nurse Practitioners and Enrolled Nurses will also be joined by head chefs and recreational activities/lifestyle officers in receiving the pay boost.

The FWC said that the interim 15% wage increase to modern award minimum wages is necessary as existing rates are not providing proper compensation for direct care workers. 

Leaders across the industry have welcomed the decision, including Australian Nursing and Midwifery Federation (ANMF) Federal Secretary, Annie Butler.

“From our perspective, the order to pay the full 15% this year not only recognises the severe undervaluation of aged care workers under the current award system, but also acknowledges the rising cost of living pressures these workers continue to face, whilst receiving chronically low wages,” said Ms Butler.

Elsewhere, the Aged Care Workforce Industry Council (ACWIC) Deputy Chair, Graeme Prior, said the FWC has made the right decision but he also remained focused on the long-term implementation of the wage increase.

“It is wonderful to see that more aged care workers will get a timely wage increase to acknowledge the value of the essential work that they do,” said Mr Prior.

“I encourage the Commonwealth to move quickly to support the funding of the wage rise in full, from June 30.

“However, there are still other aged care workers including support and administration staff, and other food services workers, who are not included in the wage increase. 

“These workers are central to the provision of safe, person-centred care and their work should be properly valued.”

Aged care workers who deliver cleaning, catering and maintenance services are among those still left out of the minimum wage increase.

Pay rise needs full Government funding

The 15% pay rise for aged care workers is not without its concerns, as providers could be forced to cover the costs of additional income if the Government does not fully fund the increase from day one.

Prior to the FWC’s ruling, the Government had committed to funding a 10% pay rise from this coming July 1, and an additional 5% from July 1 2024.

Aged & Community Care Providers Association (ACCPA) Chief Executive Officer (CEO), Tom Symondson, has urged the Government to revisit its position so providers are not financially pushed to the brink.

“With seven out of every ten aged care providers already losing an average of $21 per resident per day, this decision of the Commission changes everything,” said Mr Symondson.

“We have publicly supported the need for significant pay rises for our workforce, and fully supported the Government’s 2022 election commitment to fully fund them. 

“However, this must not be at the cost of our sector’s ability to deliver care to older Australians.”

Mr Symondson said ACCPA will work with the Government to find a workable solution that supports aged care providers to successfully pass on the 15% pay rise.

The aged care pay rise is expected to add $1.9 billion to the Government’s yearly budget.

Expanded workforce coverage welcomed by unions

Initially, only staff that could be classed as direct aged care workers were set to receive the pay rise, an interim decision that drew the ire of many in the industry.

That’s changed as the FWC has recognised that other aged care workers are not receiving the full compensation they deserve. The following staff members will now receive the 15% pay increase alongside nurses:

• Head chefs, chefs and cooks at levels 4-7 (provided they are the single most senior cook or chef engaged in a facility)
• Food services supervisors engaged and classified at level 7 (provided they are the single most senior food services employee engaged in a facility)
• Recreational activities officers and lifestyle officers under the Aged Care Award

Health Services Union (HSU) National President, Gerard Hayes, said this was an important step that recognises the efforts of the wider aged care workforce.

“To prevent aged care from collapsing every link in the chain must be strengthened,” said Mr Hayes.

“There’s no point lifting wages for direct care workers if large chunks of the workforce miss out. 

“This decision will include more classifications, and we will continue to push to have the entire aged care workforce covered.

“Aged care tends to the whole person and therefore needs a holistic workforce.”

Mr Hayes said HSU, who submitted the first applications to lift the minimum wage under the Aged Care Award and SCHADS Award, will continue to push for its desired full 25% wage increase that supports every worker.

“HSU will continue its efforts to have an additional 10% increase applied, taking the entire increase to 25%,” he said.

“We will also continue to push hard for this [to] apply to the entire aged care workforce.

“Some aged care workers are paid as little as $22 per hour and are really struggling to stay in the sector. This provides some light at the end of a very dark tunnel.”