Aged care work value case: interim decision

Insights14 Dec 2022

By Karl Rozenbergs, Piers Mitchem, Alison Baker, Fay Calderone, David Catanese, Aaron Dearden, Kristopher Kunasingam and Rosemary Roach

Direct care workers, including nurses and personal care workers, were awarded an interim 15% minimum wage increase by the Fair Work Commission last month. We explain what it means for employers.

By Karl Rozenbergs and Piers Mitchem

Minimum wage increase for direct care workers

Direct care workers, including nurses and personal care workers, were awarded an interim 15% minimum wage increase by the Fair Work Commission (FWC) last month. The increase was in recognition that gender-based assumptions have long underpinned the value ascribed to aged care work, with the result that aged care workers have historically been underpaid.

The FWC hasn’t ruled out further minimum wage increases for these workers, nor has it ruled out increases for other aged care workers covered by these awards (such as administrative and support staff).

The increase applies to direct care classifications in the Aged Care Award 2010 and the Social, Community, Home Care and Disability Services Award 2010, and to aged care nurses under the Nurses Award 2020.

Impact on employers

Employers won’t be required to apply the 15% increase until after the FWC has issued a decision on the timing of the increase, and its phasing in, which is likely to happen in February 2023. Thereafter, the FWC will proceed to consider whether further across-the-board wage increases should be applied.

Employers should note that the recent Secure Work, Better Pay IR reforms may also lead to wage pressure, in particular via multi-employer bargaining reforms that take effect within the next six months. Watch this space, as we will continue to keep you updated on what’s happening in this area.

This article was written with the assistance of Laura D’Aprano, Law Graduate.