Retaining high-skilled staff is key to bolstering the quality of the aged care sector – government announces pay rise for aged care workers
Published on 2 October 2025
Meeting the labour crisis in aged care
Central to the quality that high-performing providers, both in RAC and home care, is the highly skilled within organisations. Front-line staff are key to upholding the quality that the Royal Commission and multiple task-forces have identified as the standard of aged care. Across aged care settings from profit, to non-profit and faith-based, countless leadership teams and advocate-groups have noted that in order to meet the labour crises head-on, wage increases for aged workers is pivotal. This week the government has announced that they will be, “delivering a fourth increase in award wages to the dedicated workers who provide aged care services to older Australians.”
Honouring workers
The government notes that this increase, active October 1, “is good for workers, good for the economy and will help with the cost of living.” Across the country front-line staff have vocalised their concerns about cost of living pressures, while seeking to remain in their positions caring for some of Australia’s most vulnerable.
Whiddon and Juniper’s executive team have repeatedly affirmed the integral value front-line staff are within the operational function of both groups, and the need for sustained public and internal policy to honour their work.
Sector-wide benefits
The move to establish a wage rise, to not only align the value front-line staff bring, but to further attract outside talent into the industry is vital for the sector at large.
The government messaging has acknowledged sentiment that has been raised by advocacy groups for front-line workers, “workers in aged care deliver the very best care for our loved ones, but their work has been undervalued for too long and every worker in the sector should be able to have a long, fulfilling career supported by strong and sustainable wages growth.”
In financially articulating that aged care can facilitate long and meaningful careers, underpinned by commensurate pay-scales and opportunity for growth, may pave the way for increased labour swings from other sectors to bolster the increasing need within aged care.
As the boomer cohort continues to age into the sector, it is not only RAC facilities that are grappling with the increased need for quality workers, it is the quickly inflating need for home care staff that may start to outstrip centre needs. Attracting talent to the sector, and pointedly, skilled personnel that wish to remain, will be a critical outcome for both government policy and sector sustainability.
Increase breakdown
Government figures highlight financial implications for RNs, ENs and personal care workers for the increase, “today’s increase means an extra $60.20 per week for a registered nurse, on level 2, pay point 3 of the award”.
“Enrolled nurses will see a bump in their pay by $62.40 per week (for a level 2 award) and personal care workers will also benefit from this increase by $39.50 per week (for a level 3 award).”
In supporting the Fair Work Commission’s finding, as to the need to elevate award wages for 400,000 workers in aged care, the government places investment amounts at, “$17.7 billion”.
Further changes incoming
The government has hedged that further increases to aged care wages are slated for next year, “with the next boost coming on 1 August for registered and enrolled nurses.”
Affirming the call from sector leaders, Treasurer Jim Chalmers states, ““This investment recognises the big contribution that aged care workers make to our economy and community and will help to create a bigger incentive for young Australians looking for a rewarding career, to pick aged care in the future.”
With the only increasing demand, for quality front-line staff to uphold the quality in care needed, and the rise in numbers needing that very care, attracting and retaining aged care staff is undisputedly warranted.