Aged Care Pay Rise 2024: When Will It Be Paid?
Aged Care Pay Rise 2024: When Will It Be Paid?
The pay increase for 250,000 aged care workers has been deferred by the Fair Work Commission until next year, with a potential rise of up to 14%. This move allows the federal government to allocate an additional $5 billion in funding. The first half of the increase will be implemented on January 1, 2025, and the second half on October 1, 2025.
Details of the Aged Care Pay Rise
According to the Fair Work Commission’s recent decision, direct care workers will see 50% of the wage increase from January 1, 2025, and the remaining 50% will follow in October 2025. Meanwhile, those in indirect care roles, such as administrative assistants and cleaners, will receive their full raise starting next year.
The Commission found the government’s request for a staggered increase reasonable, considering the recent 15% interim award rate hike and the annual wage review increment. The Commission is also evaluating additional pay increases for enrolled nurses (ENs) and registered nurses (RNs) under the Aged Care work value case and a separate case filed by unions for all employees under the Nurses Award 2020.
Reasons Behind the Pay Rise Delay
The delay in the pay rise for aged care workers is due to a labour funding decision. The Fair Work Commission rejected the government’s plan to stagger wage increases between 2.5% and 13.5% over 18 months until 2026. Instead, it decided to phase in the rise in two parts: half on January 1 and the other half on October 1, 2025, due to uncertainties around short-term government funding. Starting in 2025, an additional 80,000 indirect caregivers, such as cooks and housekeepers, will receive their full 7% increase.
This wage increase follows a 15% interim rise in 2018 and aims to address the historical undervaluation of women’s work in the industry. Despite the delay, minimum staffing standards for elderly care facilities will be enforced in October before the full pay increases take effect.
Health unions have praised the Commission’s decision to reject the government's prolonged schedule but cautioned that the sector still faces an "attraction and retention crisis." The unions had advocated for the entire pay rise to commence on July 1.
Impact on Aged Care Workers' Morale
The postponement of pay rises for aged care workers, with increases of up to 14%, has caused concern among the workforce. The delay, expected to cost the federal government an additional $5 billion in funding, could significantly impact workers' morale. These professionals have long been advocating for fair compensation, and the delay might lead to feelings of frustration, disappointment, and undervaluation.
It is crucial for the government and employers to address these concerns swiftly and transparently, emphasising the value of aged care workers and their commitment to improving working conditions.