Pay rises for 250,000 aged care workers of up to 14 per cent have been delayed until next year, giving the federal government a break over what will likely cost up to $5 billion extra in funding.

The Fair Work Commission rejected the government’s proposal to stagger the pay rise of between 2 per cent and 13.5 per cent over 18 months to 2026. But faced with uncertainty over short-term government funding, it agreed to phase in the increase in two tranches – half on January 1 and the rest on October 1, 2025.