Treasurer Jim Chalmers has announced the federal government will be allocating $11.3bn over the next four years to boost the pay of 250,000 aged care workers. This is a cornerstone election promise of the Albanese government, backed up by the Fair Work Commission, and will come into effect on July 1.
The pay rise is estimated to be around 15%, which will significantly increase the wages of aged care workers across the country. This is a significant step in the right direction for aged care workers and will help to bring them in line with other workers in similar industries.
This pay rise is an acknowledgement of the hard work and dedication of aged care workers, who have been underpaid and undervalued for too long. It is also an acknowledgement of the difficult and often dangerous work that aged care workers do, as well as the emotional labour that is often required.
Anika Wells, the Minister for Aged Care, has stated the pay rise is a massive transformation for the sector, and could attract an additional 10,000 employees. This considerable increase will result in registered nurses having the capability to make more than $10,000 a year extra.
“Today marks a milestone for aged care in Australia – something that has been long-desired and long-awaited. But now, with the Labor government in power, the promise of life-changing money for people is finally becoming a reality,” she said.
Registered nurses, enrolled nurses, assistants in nursing, personal care workers, home care workers, lifestyle workers, and head chefs and cooks will all receive a pay boost due to the rise. A registered nurse on level 2.3 of their industry award will see a pay rise of more than $10,000, with an additional $196.08 per week.
The annual salary for an enrolled nurse on level 2 of their award is $7,500 plus an additional $145.54 per week. Personal care staff and head chefs/cooks on level 4 of their award in aged care will receive a yearly top-up of $7,300, or $141 per week.
The national aged care classification model price will be raised to $243.10 in order to fund the salaries of direct care staff, such as lifestyle workers. Additionally, a new $10.80 daily hotelling supplement will be established to cover the expenses associated with salary increases for head chefs and cooks.
