The Federal Government has opened a grant opportunity for aged care providers to cover, for successful applicants, a portion of the increased leave entitlements that will flow from Stage 3 of the Fair Work Commission (FWC)'s aged care worker pay rise.
$21.3 million will be available to employers for long service leave, annual leave, and personal leave taken from 1 January 2025, when the pay rises took effect.
For residential aged care, the money will cover 25% of the increased entitlements, down from 50% previously. It will cover 50% of the increased entitlement for employees of all other aged care programs, including Home Care Packages and the Commonwealth Home Support Programme (CHSP).
Employers will have to pay the entitlements out of their own funds until the grants are released.
Last year, the Federal Government wrote to the FWC seeking to have the pay rises rolled out over 12 months, rather than the six-month rollout the FWC eventually determined.
"Each phase of funding includes funding the on-costs associated with the Stage 3 wage increases in accordance with the Commonwealth’s approach to on-costs associated with the 15% interim increase for direct care workers," the Government said at the time.
The grants apply to workers employed under the Aged Care Award 2010 and the Social, Community, Home Care and Disability Services Industry (SCHADS) Award 2010.
A second grant opportunity will become available to cover further entitlement increases under the FWC decision that will come into effect on 1 October 2025.
Read more about the new grants here.
