Fourth FWC aged care award increase takes effect

October 1 marks a key moment for hundreds of thousands of aged care workers across Australia, as a fourth award wage increase takes effect.

The pay rise, a result of the Fair Work Commission’s (FWC) work value case decision, brings welcome changes for the sector’s workforce, in particular aged care nurses and personal care workers who have long advocated for better pay and recognition.

For a level two registered nurse – the most common level – this means an extra $60.20 per week, and with all prior increases combined, these nurses working in aged care will now be more than $28,000 a year better off under the Albanese Government’s commitment.

Enrolled nurses (Level 2 award) will see their pay increase by an additional $62.40 per week, while personal care workers (Level 3 award) will benefit from an extra $39.50 per week. Since the increases began in 2023, a personal care workers hourly rate has risen from $23.20 to $34.60, an extra $433 per week.

This comprehensive wage adjustment comes from a work value case initiated by the Health Services Union (HSU) in the FWC in November 2020, with strong support from the Australian Nursing and Midwifery Federation (ANMF).

The central argument was the recognition of historical gender-based undervaluation of aged care work, combined with the growing complexity and skill required in the sector over recent decades.

The FWC’s decision, which included an initial 15 per cent wage rise in July 2023, followed by further increases of 3 to 13 per cent for various direct and non-direct care roles, has been fully funded by the federal government with an investment of $17.7 billion.

Treasurer Jim Chalmers praised the pay rise, stating that aged care workers “do an incredible job and they deserve every dollar of this pay rise that we're delivering.”

“This investment recognises the big contribution that aged care workers make to our economy and community and will help to create a bigger incentive for young Australians looking for a rewarding career, to pick aged care in the future,” he said.

Minister for Employment and Workplace Relations Amanda Rishworth said the Albanese government has put gender equality at the heart of the Fair Work Act.

“We now see the gender pay gap is at its equal lowest level on record, and Australian women are now earning more than $250 a week more on average than they were before we came to government,” she said.

“Reducing the gender pay gap was one of the key reasons the government funded the 15 per cent pay increase for aged care carers. The Fair Work Commission recognised the historical gender-based undervaluation of work in aged care, leading to significant wage increases that our government funded.”

The road ahead

The ANMF, a key driver behind the FWC campaign, has celebrated the outcome.

Federal secretary Annie Butler described it as a “significant win” for the federation and its members working in aged care.

“The determination by the FWC finally recognises the true worth of Australia’s nursing and care workforce, respecting and valuing the essential, compassionate and quality care they provide to older Australians and ensuring they are paid accordingly,” Ms Butler said.

“The outcome that we have achieved belongs to ANMF members, without them, this would not have been possible. The success of the Work Value Case is attributable to them through their stories, their advocacy and their unwavering solidarity. We thank them all for helping us deliver this successful outcome and for continuing to work with us to improve aged care.”

Amongst the celebration, however, both the ANMF and HSU recognise that the push for comprehensive aged care reform continues.

HSU national secretary Lloyd Williams noted that many other aged care workers – in administration, cleaning, laundry, food services, gardening, and maintenance – were not included in this specific work value case.

“These workers are just as essential to delivering care, and the HSU will keep fighting to make sure their pay reflects the value they bring,” he said.

Furthermore, Mr Williams said, the entire sector faces ongoing daily challenges from a lack of training opportunities for staff, workforce shortages, outsourcing of critical services, restructuring of key roles, and serious health and safety risks.

“These issues undermine workers and the people they care for,” he said.

“Across the country, HSU members are now setting new goals to fix the sector.

“We want an aged care system where workers can deliver the quality care older Australians deserve, with fair pay, safe conditions, and the respect they have earned.”

For registered and enrolled nurses in aged care, another pay boost is scheduled for August 1 2026.