The Fair Work Commission (FWC) has announced its Annual Wage Review decision, with a 3.75% increase for the National Minimum Wage and the 121 Awards in place across the economy, including the Social Community, Home Care and Disability Services Award 2010 (SCHADS), the Aged Care Award 2010, and the Nurses Award 2020.
The decision affects more than an estimated 150,000 aged care workers and takes effect from 1 July 2024. For workers on the minimum wage, it amounts to an additional 87 cents per hour.
The Annual Wage Review decision will affect about 25% of the Australian workforce, predominantly part-time workers, and women. Almost half are casual workers. The total wage cost of workers on Awards is 11% of the "national wage bill".
Aged & Community Care Providers Association CEO Tom Symondson welcomed the decision and said the increase comes on top of the increase of up to 28.5% already handed down to aged care workers under the FWC's Work Value Case decisions.
“We’re pleased our valued workers on Awards and Awards-level wages, like carers, cleaners, kitchen workers, gardeners, maintenance workers and admin staff, will receive a 3.75% pay increase from today’s decision," he told The SOURCE.
"This is in addition to the Work Value Case increases, with commencement soon to be announced by the FWC.
“This decision will support further recognition of the value placed on workers in the aged care sector and enable providers to better attract and retain much needed staff."
Providers will have to cover the additional costs of the pay rise for three months, before Independent Hospital and Aged Care Pricing Authority (IHACPA) advice will prompt additional taxpayer funding to flow from 1 October 2024, Tom said.
“While providers will have to pay the 3.75% increase from 1 July to 1 October, within current funding levels, it is far better than the situation we had last year where providers had to wait six months without any certainty that it will be funded.
Read the decision here.
ACCPA CEO Tom Symondson's optimistic speech to the LEADERS SUMMIT 2024