Labor pitches ‘meaningful’ wage rise for aged care sector

The federal government will make a submission to the Fair Work Commission (FWC) today to propose a pay rise for residential and home care workers, fulfilling one of Labor's core election promises.

The government has refused to specify a dollar figure in its bid to the fair work umpire. Aged care Minister Wells said that a "meaningful" increase would be supported.

“That is for the commissioners to decide exactly what percentage the work-value cases were," Wells said yesterday.

"But we have agreed that we will fund it no matter what the decision."

The FWC is currently considering a 25 per cent wage rise after unions launched a historic aged care work value case in 2020. 

If successful, all aged care workers could see a minimum wage increase of at least $5 dollars per hour. The hourly rate for a qualified personal carer would rise from $23.09 to $28.86.

Union representatives and government figures are due to be heard by the FWC later this month.

Lifting sector wages was one of 148 recommendations made in the final report of the royal commission, which identified poor employment conditions as a key driver of substandard care.

Wells said that a wage lift was “desperately needed”, especially due to the increasing complexity of aged care work brought on by Covid-19 and shifting industry standards. 

“We need to do something to value aged care workers better and that starts with a pay rise," she said.

"The Royal Commission recommendations for aged care and for a better standard and a better future in aged care, it is more complex work, so they should be recognised for that.”

Labor's submission follows Aged Care Employee Day, which drew on the theme of 'thank you for caring' in tribute to the over 360,000 aged care staff in Australia.

More details on the government's case to the FWC are due to be released over the coming days.

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