Pay rise uncertainty continues for aged care nurses despite latest FWC decision

The Australian Nursing and Midwifery Federation (ANMF) wants the uncertainty to end over a pay increase for nurses working in aged care after direct care workers finally received confirmation over their due date for a pay rise.

Key points

• In March, the Fair Work Commission (FWC) finalised its decision on Stage 3 of the Aged Care Work Value Case: direct care workers (personal care workers and assistants in nursing) would receive an additional pay rise of up to 13.5%
• A selection of indirect care workers would also receive a pay rise, with those interacting with residents rewarded more (up to 7%) than their colleagues (up to 3%)
• The Government responded to the decision by recommending a staged rollout where indirect care workers would receive a full increase in January 2025 and direct care workers a two-part increase in January 2025 and 2026
• While union representatives were unhappy with the timeline, the FWC said the Government’s request was reasonable, but the second increase will occur in October 2025, not January 2026

The Government’s initial decision to once again stagger an aged care pay rise was not warmly received by many in the industry, including the Health Services Union (HSU) spearheading the Work Value Case. 

The United Workers Union (UWU) and ANMF agreed, with all three making similar submissions to the FWC calling for the pay rise to occur no later than June 30, 2024. Of course, this was certainly not in the timeline as the FWC handed down its decision on June 27, just days before their key date.

“The ANMF had argued for the wage rises to flow-through immediately to all aged care employees, highlighting that ‘aged care workers have been subsidising the profit margins of their employers, the Commonwealth budget, and taxpayer, for some time’,” ANMF Federal Secretary Annie Butler said.

Despite these submissions, the FWC, determined, that in light of the 15% interim award rate increase already granted and the recent annual wage review increase, the Commonwealth request for a staggered wage increase was reasonable.”

That certainty over the pay rise has been welcomed by ANMF, although there is still some confusion over who receives a pay rise and when. In its decision, the FWC said:

• The wage increases for direct care workers and HCWs awarded in the Stage 3 Aged Care decision should, as proposed by the Commonwealth, flow in two tranches; and
• The operative date for the first tranche of increases for direct care workers and HCWs, and the full increases for indirect care workers, should be January 1, 2025

But with some direct care workers and home care workers receiving minimal increases, in some cases zero, they have advised that:

• If half of the total increase is more than 3%, half of the total increase should take effect on January 1, 2025;
• If the total increase is more 3%, but half of the total increase is less than 3%, a 3% increase should take effect on January 1, 2025; and
• If the total increase is less than 3%, the total increase should take effect on January 1, 2025. 

Indirect care workers, including cleaners and administration staff, are set to receive the full increase from the start of next year. For those receiving just 50% of a pay increase in January, the remainder will have an operative date of October 1, 2025. It’s important that providers clearly communicate this information to staff. 

Elsewhere, registered (RNs) and enrolled nurses (ENs) remain in limbo regarding their current wages under the Nurses Award and Aged Care Award. As the FWC stated in its decision;

“The ANMF also made submissions about the operative date for pay increases for registered and enrolled nurses under the Nurses Award arising from the Stage 3 Aged Care decision but, for the reasons explained […] of that decision, the finalisation of the position of registered and enrolled nurses in aged care will be dealt with in a separate process and therefore do not arise for consideration in this decision.”

Ms Butler said this delay is concerning.

“Additional pay increases for enrolled nurses (ENs) and registered nurses (RNs) are still being considered by the FWC in both the Aged Care work value case and a separate Work Value Case made by the ANMF for all employees covered by the Nurses Award 2020,” she said.

“The ANMF hopes a result can be achieved quickly so that all nurses working in Australia’s aged care system finally receive a long-awaited and much-deserved increase to award wages.”

The Fair Work Commission’s full decision can be viewed on its website.