Thinking | 19 January 2016

Average wage increase of 3.22% in the aged care sector in 2015

The aged-care sector has experienced larger than average wage growth in 2015.

We have analysed wage growth in the aged care sector and have found that in 2015, the aged care sector experienced wage growth of approximately 3.22%. In contrast, non-sector specific wage growth for Australia was reported at 2.3% for the same period according to the Australian Bureau of Statistics.

Though wage growth Australia-wide has been predicted to be low for the foreseeable future, enterprise agreements in the aged care sector show that wage growth will steadily rise, up to 3.27% in 2016 and 3.35% in 2017.

Not-for-profit (NFP) aged care businesses experienced lower wage growth for the 2015 year, at 3.09% compared to 3.33% for profitable aged care businesses. This trend will continue in 2016, with NFP wage growth falling 0.11% behind profitable businesses. However, the tables look to turn in 2017, with NFP wage growth set to increase 0.16% more than profitable aged care businesses.

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Karl Rozenbergs

Employment lawyer Karl Rozenbergs advises clients in adverse action claims, on negotiating enterprise agreements and much more.

Stephanie Rocca

Insurance lawyer Stephanie advises WorkSafe Victoria and its agents in strategies to defend and resolve workers' compensation claims.

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