The Fair Work Commission (FWC) has today awarded a 15% pay rise for aged care workers from June 30, 2023, bringing forward the 5% increase that was due to commence from July 2024.
The government has committed to funding 10% of the pay rise from July 2023 and an additional 5% from July 2024. However, the FWC’s decision to implement the pay rise in one go has put additional pressure on the already struggling sector.
Updated 1st March 2023: In an op-ed coinciding with the second anniversary of the Final Report being handed down by the Aged Care Royal Commission, Minister for Aged Care Anika Wells has stated that the government will deliver a pay rise of at least 15 per cent this year. The full statement can be found here.
‘From this year, we will deliver a pay rise of at least 15 per cent for aged care workers on the minimum award.’
‘For many, it will be the first time they receive more than $30 an hour for their work’
Minister for Aged Care Anika Wells MP
The Royal Commission was a damning assessment of an aged care system in crisis.
— Anika Wells MP (@AnikaWells) February 28, 2023
Since coming into government, we have directly addressed 37 recommendations. pic.twitter.com/tiVuMNckMh
In a statement released today, ACCPA CEO Tom Symondson stated that the aged care sector is already facing a financial crisis and cannot afford unfunded pay rises of this magnitude. The organisation has repeatedly called for matched funding to ensure that the sector can sustainably provide quality care for older Australians.
Mr Symondson stressed that the decision changes everything, and the government must revisit its position on funding. With seven out of every ten aged care providers already losing an average of $21 per resident per day, the pay rise could push some providers to breaking point.
The wage increase applies to direct care workers, including Head Chefs and Recreational and Lifestyle Officers but does not include aged care support and administration staff.
In a statement, Deputy Chair of the Aged Care Workforce Industry Council (ACWIC), Graeme Prior, acknowledged that progress is being made on improving wages for aged care workers, and said that more needs to be done.
“It is wonderful to see that more aged care workers will get a timely wage increase to acknowledge the value of the essential work that they do.
“However, there are still other aged care workers including support and administration staff, and other food services workers, who are not included in the wage increase. These workers are central to the provision of safe, person-centred care and their work should be properly valued,” he added.
