Aged care nurses set to earn more from March 1

Registered and enrolled nurses working in aged care will soon be paid more under the Fair Work Commission's (FWC) changes to the Nurses Award 2020.

The pay increases, outlined in the FWC's final determination in December of last year, will vary across classifications, but will build upon the 15 per cent award wage increase introduced from 30 June 2023.

Many aged care workers under the Aged Care and SCHADS Awards saw an increase to their pay on January 1, including direct and indirect care staff, assistant nurses, administration staff, cooks and cleaners.

However, registered and enrolled nurses under the Nurses Award 2020 have been waiting to see how and when their pay rises will be funded.

The Albanese government sought to delay the increase with a submission to the FWC in October, citing budget issues and worries that the increase would only exacerbate the sector's workforce woes, a sentiment supported by aged care peak body Ageing Australia (nee: ACCPA) which voiced the sector's concerns regarding the pace of government reform.

Despite this, the FWC gave the sector just over two months to ready itself for this latest round of wage increases.

Related: Dates for care workers’ pay rises set by Fair Work Commission – nurses still waiting | Aged care workers may wait until 2026 for full pay increase | 70% of providers concerned about pace of Aged Care Act rollout

What you need to know

How much will wages increase?

Implementation of the FWC's final determination will see the minimum award rate increase between 4.2 and 25.5 per cent for age care nurses, depending on the employee's role classification. The pay bump will affect most employed RN and ENs but not all, with the FWC determining that the 15 per cent increase in 2023 was sufficient in some cases.

When will it happen?

The total pay increase percentage will be divided equally and delivered in three tranches. The first on 1 March 2025, then 1 October 2025, and finally on 1 August 2026.

How will wage increases be funded?

The Government has committed to providing funding through the same channels used in prior stages of the award wage increase, including funding for residential aged care and specialist aged care programs, the Home Care Package subsidy and grants for historical leave liabilities. 

Assistant secretary of the Residential Care and Hotelling Reform Branch Mark Richardson said Labor will await advice from the Independent Health and Aged Care Pricing Authority (IHACPA) before announcing changes to the Australian National Aged Care Classification (AN-ACC) and the 24/7 registered nurse supplement rates by the end of this week.

“There will be an increase in the AN-ACC price and the 24/7 registered nurse supplement on 1 March 2025. That will be for all residential aged care providers and that will be to fund the first phase of the wage increase for registered and enrolled nurses,“ he explained during the Department of Health and Aged Care's Award Wage Increase for Nurses in Aged Care Webinar on Tuesday.

How will roles be reclassified?

Minimum pay rates will be determined according to a new employee classification structure, with all providers needing to reclassify employees by March 1.

“The previous five-level pay classification structure for enrolled nurses working in aged care will change to one single level, with one minimum wage,“ the FWC said.

“The classification structure for registered nurses working in aged care has also changed – from 27 pay points spread across five levels to eight pay points spread across five levels.“