After extensive consultation with unions, the federal government has released guidance for the upcoming aged care wage changes, which will see direct care workers receive a 15% pay rise from July this year.
The guidance sets out the legal obligations of aged care providers to comply with the federally funded increase. The changes are set to kick in from the first full pay period on, or after, the 30 June 2023, under the Fair Work Act.
Here are some of the key points:
- Providers must pass on the full 15% pay rise to workers.
- Providers must provide clear information to workers about their current and new rate of pay.
- Providers must attest in their Quarterly Financial Report that they have passed on the full 15% pay rise.
The 15% pay rise was granted by the Fair Work Commission in February this year, following a case brought by the Australian Nursing and Midwifery Federation and other unions. The commission found that aged care workers were underpaid and that the pay rise was necessary to ensure they were paid a fair wage for their work.
Anyone on the Award or who is employed by a private provider, even if paid more than 15% above Award rates, should receive a pay increase.
- For example, the rate of pay for a Registered Nurse stands at $34.42. With the 15% work value added, this rate lifts to $39.28. This is a $4.86 per hour increase.
- The current Nurses Award Certificate III rate of pay is $24.76 per hour. With the 15% work value increase, that will translate to a $3.71 increase. This takes the Nurses Award rate of pay to $28.47 per hour.
- From July 1, Assistant in Nursing positions may also be entitled to the FWC increase (5.75%)
The federal government has allocated $11.3 billion over four years to aged care employers to fund the pay rise. The government has also said it will hold employers to account to ensure the money is passed on to workers in full.
The pay rise is a welcome boost for aged care workers, who have been under increasing pressure in recent years. The sector is facing a staffing crisis, with many workers leaving the industry due to low pay and poor working conditions. The pay rise is expected to help to attract and retain staff, and to improve the quality of care for residents.
There have been concerns that some employers would not pass on the full wage increases to workers. However, the government’s guidance makes clear providers have a legal obligation to do so.
The 15% pay rise is a significant victory for aged care workers and their unions. It is a recognition of the important work they do and a step towards ensuring they are paid a fair wage.
If you are an aged care worker and have questions or concerns about how this will affect you, you can contact the NSW Nurses and Midwives’ Association.