Pay rises for 250,000 aged-care workers to be phased in

Wage rises of up to 13.5 per cent for 250,000 aged-care workers will be paid in two tranches by October next year.

United Workers Union aged care director Carolyn Smith welcomed the ‘huge increases’ in pay for aged-care workers.

Pay rises of up to 13.5 per cent for 250,000 aged-care workers will be phased in next year after the federal government convinced the Fair Work Commission to stagger the increases in two tranches over nine months.

Unions wanted the wage increases paid immediately but given the government is fully funding the pay rises, the commission largely upheld the commonwealth position to delay their implementation.

The government has made a multibillion-dollar commitment to fund pay rises for aged care and early childhood workers but urged the commission to phase in the wage increases in two stages in 2025 and 2026.

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The commission agreed to phase in the pay rises in two tranches, with half in January 2025 and the remainder from October, three months ahead of the government’s preferred position.

Health Services Union national president Gerard Hayes said the commission decision to bring the introduction of the second increase forward three months faster than the government wanted was a welcome improvement.

“But the government should not have to be dragged to this position,” he said. “The attraction and retention crisis in aged care is with us now, and there’s no sense in delaying wage justice for a workforce that strives so hard for such modest reward.”

United Workers Union aged care director Carolyn Smith said that while members had wanted the pay rises upfront, they were “incredibly happy that after many, many years of their work being undervalued”, they would be getting the wage increases.

“Overall, (we) would have liked it sooner but really happy with the outcome,” she said.

“It really is billions of dollars and that’s worth noting that this is not just a wage increase for a group of workers at one employer, this is an industry-wide increase.”

“We wanted it straight upfront but you have got to acknowledge this is a huge increase.

“All of it will be in people’s pockets by October next year.

“This is an incredible outcome for aged-care workers who really suffered for many years with their work being unrecognised and undervalued.

“Over this period of time when their award will have increased by 25 per cent is huge.”

The commission noted union submissions that delay in the delivery of the wage increases would disadvantage aged care employees because they were under pressure from increases in the cost of living.

It said the pay increases awarded in the past two annual wage reviews would ensure the real value of the wages of award-reliant aged care workers would have been maintained over the period since an interim 15 per cent increase took effect last June.