What do I need to know about the 15% wage increase for aged care sector | Payroll FAQ

What happened?

On 21st February 2023, the Fair Work Commission decided to increase minimum wages by 15% for some employees working in aged care. Please note this decision is separate to the Annual Wage Review. It takes effect from the start of the employee’s first full pay period on or after 30th June 2023.

Who and what is included? 

The increase applies to direct care employees working in aged care. Direct care employees are those who work in caring roles in the following award classifications:

The 15% increase also applies to the most senior food services employees (levels 4-7):

  • Covered by the Aged Care Award.
  • Working at a particular aged care facility or site.

The 15% increase does not include other employees in the aged care sector, this includes:

  • Support and administrative employees.
  • Chefs and cooks covered by the Aged Care Award who are not the most senior food services employee at a particular aged care facility or site.

How do I manage them?

To adhere to these recent changes and help lessen the administrative burden for employers, we will introduce new pay rate templates and employment agreements to accommodate employees paid under the new award classifications, by 30th June 2023 upon release of the Fair Work pay guides.

How to manage employees with dual pay rates?

You can only assign employees to one classification. If employees have multiple job roles with different pay rates, you will need to check with Fair Work. You might need to customise the award to accommodate the different work patterns.

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