Nurse pay rise starting soon

From next month the new weekly minimum wage for a full-time registered nurse in aged care under the Nurses Award 2020 increases to between $1,345.60 and $2,412.10, dependent on qualifications and years of employment. Full-time enrolled nurses supervising other direct care employees will receive a minimum $1,301.60 per week.

The increase comes into effect on the first full pay period starting on or after 1 March, delayed from 1 January, but the government has not yet confirmed when funding will start. A spokesperson told Australian Ageing Agenda more information on this will be provided soon.

Further increases will be introduced from the first full pay period starting on or after October 1 2025 and 1 August 2026, the Fair Work Commission has reiterated in an announcement this week. There are also changes to the classification structure.

Coming as part of the work value cases for nurses and midwives (ongoing) and aged care (concluded), the FWC decision was issued on 6 December after an expert panel for pay equity in the care and community sector determined to increase minimum wages in the award that apply to enrolled nurses working as aged care employees and registered nurses working as aged care employees.

The award defines an aged care employee as someone providing services for aged persons in a hostel, nursing home, aged care independent living unit, aged care serviced apartment, garden settlement, retirement village or any other residential accommodation facility. It also includes someone who provides services for an aged person in a private residence.

The updated version of the award will be published by the FWC on 28 February, but the determination varying the award is available here.

“We welcome the news that our members who are RNs and ENs will be receiving an additional pay rise on top of the 15 per cent they already received in 2023,” NSW Nurses and Midwives’ Association acting general secretary Michael Whaites told AAA.

“It’s been a long time coming for this female-dominated workforce to be recognised and valued for the incredible and crucial work they do caring for our communities.

“The Work Value Cases for nurses and carers who work in aged care recognised historical undervaluing, and this is a positive step forward in addressing gender inequity in the care industry.”

Mr Whaites said the ANMF NSW is calling on the federal government to ensure that the pay rises for RNs and ENs in aged care are funded in the same way the earlier tranches of pay rises were.

“We expect employers to do the right thing and pass on any additional funding they receive,” he said.

“It’s imperative that RNs and ENs are the recipients of any government funding, as was the case with the initial 15 per cent increase.”

Tom Symondson, chief executive officer of Ageing Australia told AAA that while the pay rises are welcomed by members, they are still waiting for guidance from the department, as well as for details regarding the additional government funding to pay for the increases.

“Such funding will be critical, given the ongoing financial sustainability challenges and the workforce needed to meet both the care minutes targets and the needs of older Australians,” he said to AAA.

“The timeline will be challenging for providers and DOHAC, given the final decision from the Fair Work Commission was issued late on 20 December 2024, days before the Christmas break.

“The issuing of the DOHAC Guidance and confirmation of the additional funding are key to implementation of the pay rises. In the meantime, providers are planning for the first of March, and for how they will fulfil their obligations under the Fair Work Act.”

Leave liability grants open

Meanwhile, to help supplement 1 January 2025 award increases to leave entitlements for aged care workers affected by the FWC’s stage 3 decision in the aged care work value care, the government has announced the opening of a new grant opportunity.

The Aged Care Wages – Stage 3 Historical Leave Liabilities (Tranche 1) Grant Opportunity will provide one-off funding to eligible providers to pay for higher rates of leave with a total of $21.326 million available for the 2025-26 period.

The grant will supplement increases to leave entitlements with:

• 25 per cent for residential aged care providers
• 50 per cent for other aged care programs.

The other includes the Home Care Packages program, Commonwealth Home Support Progam, Transition Care Program, Short Term Restorative Care Programme or the National Aboriginal and Torres Strait Islander Flexible Aged Care Program.

Eligible leave liabilities include long service leave, recreation leave and personal leave accrued to 31 December 2024.

To be eligible, providers must have increased wages as a result of FWC stage 3 decision for aged care workers employed under the Aged Care Award 2010, including:

• direct care aged care employees
• assistants in nursing or nursing assistants
• personal care workers
• recreational or lifestyle activities officers
• general and administrative services employees, including administration staff, drivers, maintenance staff, gardeners, laundry hands, cleaners and food services assistants.

Staff employed under the Social, Community, Home Care and Disability Services Industry (SCHADS) Award 2010 (Schedule F), including home care employees whose primary role is to provide home care to aged care clients are also eligible.

If providers employ workers through the Indigenous Employment Initiative and those workers have eligible accumulated leave liabilities as of 31 December, they should also claim.

Another grant will open to meet the 1 October award wage increases.

Apply on GrantConnect before 2:00pm (ACT Local Time) 6 March.

This story was updated on 7 February to reflect new information.

Comment on the story below. Follow Australian Ageing Agenda on LinkedIn and Facebook, sign up to our twice-weekly newsletter and subscribe to AAA magazine for the complete aged care picture.