Fair Work decides on 25 percent wage increase to aged care staff

UPDATE: The Commission today announced rises between two and 13.5 percent for aged care workers from July 2024.

Key points:

• Direct care and some senior food services employees in the aged care sector were given a 15 percent wage increase from June 30, 2023, following a decision by the Fair Work Commission

• Catholic Health Australia is Australia’s largest non-government grouping of health and aged care services, accounting for approximately 15 percent of hospital-based healthcare in Australia

• The Duty of care: Aged-care sector running on empty report by the Committee for Economic Development Australia has found many aged care providers are struggling to find enough staff

The long-running Health Services Union work value case for aged care workers will be concluded at approximately 2pm AEDT on March 15, when workers learn if they have achieved an across-the-board 25 percent wage rise.

The case was lodged by the HSU in the Fair Work Commission in November 2020. At the end of 2022, the Fair Work Commission awarded an interim 15 percent pay rise to direct care employees.

Since then the HSU has continued to push for a full and comprehensive pay rise for the entire sector.

“Aged care workers are the undervalued, under-appreciated lifeblood of the care economy. The women of this sector have been overlooked for too long,” HSU National President Gerard Hayes said.

“Aged care workers perform physically and emotionally demanding work with our community’s most vulnerable members. All they have asked for is a proper wage that recognises their skills and dedication.

“Enough is enough. Our work value case has been absolutely pivotal to lifting wages and today we hope to see life-changing news for these incredible workers.”

Catholic Health Australia has called on the federal government to fully fund a wage rise for aged care workers arising from today’s decision in the Fair Work Commission.

Catholic Health Australia strongly supports the full 25 percent claim for all aged care workers, with CHA Aged Care Director Laura Haylen stating that it would alleviate cost of living pressures for direct and indirect care staff.

“We strongly support the claim to raise the wages of dedicated, compassionate and hard-working staff, especially as cost of living pressures mount,” she said.

“The Federal Government must deliver on its commitment to fully fund these wage rises as soon as possible, including any leave entitlements. We believe that we can work together to ensure staff are paid as quickly as possible without diverting existing funds from quality care and support.

“With most aged care providers already running at a loss, they cannot afford to absorb these extra costs without government funding.”

Catholic Health Australia has previously called for wage rises to help fix worsening staff shortages in aged care, including in a recent budget submission.

“Right now we have 60,000 care and nursing vacancies and this is projected to hit 110,000 in six years’ time. The government must fix this nationwide shortage before it devastates the sector any further,” Ms Haylen said.

The Commission continued to consider the full wage claim, following the interim rise in 2023 and whether to extend it to all aged care workers, including around 100,000 essential food preparation, maintenance and household staff.

Alongside boosting pay, CHA has urged the government to subsidise nurses’ rents, re-establish Health Workforce Australia and create a national ‘Health & Care Worker Passport’ to ease workforce shortages.

What do you believe will come of the Fair Work Commission’s decision today? Let the team at Talking Aged Care know and subscribe to the newsletter for more news, information and industry updates.

Related content:

Aged Care Taskforce report concludes taxpayers can’t foot the bill

How an ageing population permanently changed the Australian economy

What is money being spent on in Australia’s aged care sector?