Aged care workers are set to receive a significant pay boost in the upcoming federal budget, addressing the rising cost of living pressures. The $11.3 billion package will lead to substantial salary increases for nurses and aged care workers, commencing from January 1.
Under this proposal, the annual pay of aged care workers will increase by $7,000, and nurses will receive a yearly raise of $10,000. The pay rise will benefit 250,000 aged care workers, including registered nurses and other employees. It is expected that this increase in remuneration will attract 10,000 more workers to the aged care sector, alleviating the workforce crisis it has been facing.
Aged Care Minister Anika Wells expressed that this is a momentous change and emphasizes the importance of addressing the workforce crisis in the aged care sector. Treasurer Jim Chalmers stated that this pay rise is well-deserved and necessary to support the care economy during challenging times.
The pay increase for aged care workers is the most substantial since the Federation of Australia, and it marks a significant step in rectifying the undervaluation of the care economy in the country.
Employers will be legally obligated to pay 15 percent above the award for workers, and public pressure will ensure that workers on enterprise agreements also receive the appropriate remuneration. The $11.3 billion package covers funding for leave liabilities and superannuation.
Below is a breakdown of the salary increases for aged care workers:
- Registered nurse on a level 2.3 award wage: An extra $196 per week, totaling more than $10,000 annually.
- Enrolled nurse on a level two award wage: An extra $145 per week, amounting to more than $7,500 annually.
- Level three assistant in nursing: An additional $136 per week, adding up to more than $7,100 annually.
- Level 4 aged care worker or level 3.1 home care worker: An extra $141 per week, equivalent to more than $7,300 annually.
- Recreational activity officer on a level 3 aged care award: An extra $139 per week, totaling more than $7,200 annually.
- Head chef on a level 4 aged care award: An additional $141 per week, amounting to more than $7,300 annually.
- As a staff member at an aged care facility, hold a Certificate III and receive a weekly salary of $1,082.
The funding for these salary increases is in addition to the cost for providers paying their employees the extra 15 percent, and it also covers leave liabilities and superannuation. The government sees this investment in the care economy, including aged care, as an opportunity to bolster the broader economy in the future.
