The Australian Government has advised the Fair Work Commission (FWC) how it wants to pay the latest wage rises recommended for direct and indirect aged care workers.
The Health Services Union (HSU) described on 19 March 2024 the decision by the Fair Work Commission to approve wage increases of up to 28.5 per cent across the sector as a landmark decision.
The FWC ruled the Stage 3 decision as:
Personal Care Workers (PCW): an extra 18.2% to 28.5% (inclusive of the 15% interim award);
Assistants in Nursing (AIN): an extra 17% to 24.5% (inclusive of the 15% interim award), and
Home Care Workers: an extra 13.3% to 21.1% (inclusive of the 15% interim award).
Indirect care workers: 6.8% in total
The Government told the FWC this afternoon it commits to providing the funding:
- Indirect care workers – in full from 1 January 2025;
- Direct care workers – 50% of the Stage 3 wage increases (including on-costs) from 1 January 2025;
- The remaining 50 per cent of the Stage 3 wage increases for direct care workers (including on costs) from January 2026.
"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," it said.
"As a consequence of this funding commitment, and having regard to the Commonwealth’s role as the principal funder in the aged care sector, the Commission can be satisfied that granting the Stage 3 wage increases in alignment with the timing of the Commonwealth funding commitment would result in those increases having a non-material impact on business and employer costs.'
The Labor Government sought to phase in the interim 15% pay rise for aged care workers before in February 2023 the FWC forced it to pay the rise in full from 30 June 2023.
The FWC's final decision on the Stage 3 aged care worker pay rises and the nurse wage increase are imminent.
