Aged care workers will see a 15 per cent pay rise as the federal government commits a record $11.3 billion in next week’s budget.
In line with the Fair Work Commission’s order for underpaid workers in the sector, Labor is hoping this pay rise helps attract more staff into aged care homes.
The government is also hopeful this wage boost helps reach an election promise of having nurses on duty 24/7 in all facilities.
The $11.3 billion investment to fund a pay rise for aged care staff over four years will come into effect from July after the government lost a bid to stagger it across two financial years.
Amongst rising costs of living, a recent report by Everybody’s Home showed that even though aged care staff are specified as essential workers, most need to spend two-thirds of their income on rent in order to afford to live alone. This means that single, full-time essential workers are considered to be in “rental stress” in all regions of Australia.
“Fair wages play a major role in attracting and retaining workers to provide around-the-clock care for some of Australia’s most vulnerable people,” said the aged care minister, Anika Wells.
“This wage decision will help more women and families to make ends meet, and ensure that quality aged care workers are less likely to contemplate leaving the sector because of pay concerns.”
What will this $11.3 billion look like in staff paychecks?
The government says the pay rise will benefit around 250,000 workers including nurses, personal care workers, cooks, recreational officers and home care workers.
A registered nurse on a level 2.3 award will receive an extra $196.08 per week, which is more than $10,000 each year. An enrolled nurse on a level 2 wage award will get $145.45 more each week, and an assistant nurse on a level 3 award will get an additional $136.68 every week.
And a staff member with a Certificate III qualification will get $142 more each week.
For a personal care worker on a level 4 award or a home care worker on a level 3.1 award, their weekly paycheck will see $141.10 more, and a head chef/cook on a level 4 award would get an additional $141.12 each week.
The government hopes these pay boosts will attract around 8,000 workers to join or rejoin the aged care sector.
“For too long, those working in aged care have been asked to work harder for longer without enough reward but with this budget, that changes,” said the treasurer, Jim Chalmers.
“This investment recognises the incredible 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.”