Direct care workers in residential aged care and home care will receive a further 13.5% pay rise, the Fair Work Commission (FWC) has announced in its Stage 3 decision of the Aged Care Work Value Case.
Indirect care workers, who have not received a pay rise yet under the Work Value Case (240,000 direct care workers already received an interim 15% increase in November 2022), will receive 6.8% in total.
The FWC awarded:
Personal Care Workers (PCW): an extra 18.2% to 28.5% (inclusive of the interim award);
Assistants in Nursing (AIN): an extra 17% to 24.5% (inclusive of the interim award), and
Home Care Workers: an extra 13.3% to 21.1% (inclusive of the interim award).
The full bench of the FWC said there was a "fundamental difference" between the work of direct care workers and other employees engaged in residential aged care.
"The Expert Panel concludes that the above workers do not perform work of equivalent value to direct care workers justifying equal rates of pay," they said.
The FWC decided not to increase further the wages of Head Chefs/Cooks.
“This is an historic improvement that will usher in a new era of decency and dignity in our aged care homes,” HSU National President, Gerard Hayes said this afternoon.
“For the last decade aged care has been held together by the goodwill and commitment of a severely underpaid, insecurely employed workforce. Today those workers have won wage justice.
“We acknowledge that people in administration and maintenance have not received the wage increase we pushed for. We will keep pushing and fighting to lift their wages.
“Most of the aged care workforce itself can now imagine and plan for fully fledged careers, where people can plan a life around their work and really commit to it. Many workers have subjected themselves to the edges of poverty and homelessness to work in this industry. Now they can care for the elderly and also provide for themselves and their family.”
Anglicare Australia welcomed the FWC decision.
“We are particularly pleased that today’s decision recognises that aged care workers have been underpaid as a female-dominated workforce, and recognises the important contribution of care work. Most of the beneficiaries of today’s decision will be women," said Anglicare Australia Executive Director Kasy Chambers.
“Now we need to ensure that the Government stands by its commitment to fund these pay increases."
Tom Symondson, ACCPA CEO, said the peak body was ""delighted the Fair Work Commission has acknowledged the vital contribution aged care workers make to our community through the care they provide to older Australians.”
“A key recommendation of the Aged Care Royal Commission was to raise the pay of aged care staff.”
He also acknowledged the disappointment facing thousands of other workers in aged care, who will receive rises of 3% to 7% and who also missed out on the 15% increases awarded to care staff last year.
“There is an ever-widening chasm between what we pay some workers in aged care and what we pay others,” he said.
“Without our laundry staff, kitchen staff, cleaners, gardeners, maintenance, and administrative staff our direct care workers couldn’t do what they do. They all work within the unique environment of aged care whether they are delivering services to older people in their own homes or in residential care.”
The FWC will now await responses from the unions and Government before setting a date for the wage increases to be introduced.
