Updated: Direct care workers to receive increase in minimum wage on top of 15 per cent pay rise

The Fair Work Commission has announced a 5.75% increase to all minimum award wages effective July 1, 2023. This means minimum wages for employees affected by the 15% aged care sector decision will also increase.

Direct care and some senior food services employees in the aged care sector will receive a 15% wage increase from 30 June 2023.

This increase applies to eligible employees covered by the:

  • Aged Care Award
  • Social, Community, Home Care and Disability Services Industry (SCHADS) Award
  • Nurses Award.

Further information on the wage increase can be found here.

For residential aged care employers, the AN-ACC price will increase from 1 July 2023 to $243.10 (an increase of 17.6%) based on advice from the Independent Health and Aged Care Pricing Authority (IHACPA) to cover the wage rises.

IHACPA’s pricing advice for 2023 – 24 was released on 26 May 2023 and is available here: https://www.ihacpa.gov.au/resources/residential-aged-care-pricing-advice-2023-24

Inside Ageing has spoken to some employers who question whether the 17.6% increase will be enough in light of the addition to minimum wages. Inside Ageing has sought comment on whether there will be an adjustment or funding supplement in light of the changes to minimum wages and will update this story…

Updated 15 June 2023: At 3 pm (AEST) today the Department of Health and Aged Care will host a webinar to answer questions in relation to aged care wage increases. Questions can be put forward at the time of registration. Register here.

Inside Ageing has spoken with a residential aged care provider who has run the numbers on the additional cost of the 5.75% wage increase after factoring in the cost of this based on current achieved staffing levels – 160 minutes (this delivers current costing numbers and is a realistic assessment) – the cost of the increase based on the gap to reach 200 minutes plus oncosts (38%) on the additional wages equates to about $400k per annum for their 100-bed service.


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