Aged care providers are nervous a fortnight out from the 15% pay rise for aged care workers.
Guidance sent to providers earlier this week notes that the Fair Work Commission’s Annual Wage Review Decision, which increased the minimum award wage by 5.75%, will also be paid to aged care workers on minimum award wages on top of the 15% increase.
The government has said the additional funding will be included in AN-ACC, however there has been little clarity about the figure. The guidance states, “For residential aged care, the price of $243.10 includes an estimate of wage indexation for 2023-24 for all workers funded through AN-ACC.” However, the IHACPA Residential Aged Care Pricing Advice 2023–24 states that AN-ACC indexing for inflation and wage rises in 2022-23 was 3.1%.
Providers are also facing the 0.5% increase in the Superannuation Guarantee and inflation, which is 7%.
With more than half the sector operating at a loss, and 37 homes closing in the past year, many due to financial pressures, there are still concerns the increase in government funding will not be sufficient to cover the higher wages bill.
There is also dissatisfaction the FWC is still deliberating on Stage 3 of the Work Value decision, meaning ‘other workers’, such as laundry, maintenance and cleaners, are excluded from the 15% pay rise.
Today, the Department of Health and Aged Care will host an ‘Aged care wage increase’ webinar. No doubt providers will have plenty of questions.
Presenters will be:
- Emma Gleeson, Assistant Secretary, Workforce Branch, Department of Health and Aged Care
- Mark Richardson, Assistant Secretary, Residential Care Funding Reform Branch, Department of Health and Aged Care
- Russell Herald, Assistant Secretary, Home Support Operations Branch, Department of Health and Aged Care.
You can register for the webinar HERE.
