Aged Care Insite Australia's number one aged care news source
Next week's federal budget will fund a highly-anticipated salary increase for aged care workers after Labor announced a major increase in sector-wide spending.
On Wednesday, the government said it will fund a 15 per cent pay rise for over 250,000 aged care workers from July 1, costing an estimated $11.3bn over four years.
Registered nurses can expect a weekly increase of up to $200, equivalent to an annual salary rise of $10,000.
Personal or home care workers will take home an additional $141 per week and assistant nurses an additional $137 per week.
Treasurer Jim Chalmers said this acknowledged the 'incredible contribution' aged care workers had made to Australia.
"Every worker deserves a fair day's pay for a fair day's work, and that's what this will deliver for thousands in aged care across the country," he said.
Mr Chalmers said the pay rise would help attract more staff to work in aged care homes and move the government closer to fulfilling its election promise of round-the-clock nurses in facilities.
From July 2023, the price of AN-ACC will be raised to $243.10 for residential aged-care providers to deliver pay rises to direct care staff and lifestyle workers.
The government will establish a hotelling supplement of $10.80 per resident per day to pass to fund salary increases for head chefs and cooks.
Providers delivering home care services will also see an increase the value of packages.
"This investment is a historic and deserved pay rise for a workforce undervalued for far too long," Aged Care Minister Anika Wells said.
The funding announcement has increased the Albanese government’s spending on aged care by 23 per cent, rising from $24.8 billion to $29.6 billion.
Other sector costs are projected to go towards improving standards recommended by the Aged Care Royal Commission.
Council on the Ageing (COTA) chief Patricia Sparrow said while the salary increase will help to attract more people into aged care there are concerns that providers may pocket extra costs.
"Raising wages in aged care is essential to achieving better outcomes in the system," Ms Sparrow said.
"It's also critical there's transparency in the system to ensure the money is going directly to the workers and isn't just going to the provider's bottom line."
Australian Nursing and Midwifery Federation Victorian secretary Liza Fitzpatrick echoed similar concerns and that without accountability the pay rise will mean "next to nothing."
"So far, the promise lacks any detail about a mechanism to legally require aged care employers to pass on all the funding to their staff in pay rises," she said.
"This decision will entrench the private aged care staff shortage."
Major aged care providers Catholic Health Australia and HammondCare have both released statements that said every dollar from the $11 bn will go towards increasing salaries for frontline staff.
"Aged care providers will be incredibly relieved to see this government funding confirmed," Catholic Health Australia director Jason Kara said.
"I know providers are greatly looking forward to passing on this wage increase so they can reward their teams with more than thanks."
HammondCare Chief Mike Baird said the announcement was a message to the country that the work of aged care staff matters.
"It is very much deserved recognition for their commitment to helping vulnerable people in need," Mr Baird said.
"Anyone that's had someone in aged care knows the impact that these frontline workers have – each day and night, they change lives."
What will change from June 30 2023?
The government said it would boost wages for:
- A registered nurse on a level 2.3 award wage will be paid an additional $196.08 a week (more than $10,000 a year).
- An enrolled nurse on a level 2 award wage will be paid an additional $145.54 a week (more than $7500 a year).
- An assistant in nursing on a level 3 award wage will be paid an additional $136.68 a week (more than $7100 a year).
- A personal care worker on a level 4 (aged care award) or a home care worker on a level 3.1 (SCHADS award) will be paid an additional $141.10 a week (more than $7300 a year).
- A recreational activity officer on a level 3 (aged care award) will be paid an additional $139.54 a week (more than $7200 a year).
- A head chef/cook on a level 4 (aged care award) will be paid an additional $141.12 a week (more than $7300 a year).
- A staff member with a Certificate III qualification moves from earning only $940 per week to $1,082.
Email [email protected]
Get the news delivered straight to your inbox
Receive the top stories in our weekly newsletter Sign up now
I work in aged care facility in Randwick, I belong to the dining team but work in the cafe, I’m in direct contact with the residents for 7 hours a day, I know them by name and know thier families and each needs and daily requests, I Deal with dementia daily as well lockdowns but I miss out on the pay rise.