Major Pay Rise: Australia’s Aged Care Industry Gets 28.5% Wage Increase!
This is undoubtedly historic news for Australia’s aged care workers! After years of relentless advocacy, the Fair Work Commission has made a landmark decision: a comprehensive 28.5% pay increase across the entire aged care sector. This wage rise is equivalent to roughly a one-third increase in salary — truly remarkable!
In fact, since November 2020, the Health Services Union (HSU) had been advocating before the Fair Work Commission (FWC) for a 25% pay increase for all aged care workers. The union argued that the work had become increasingly complex, was predominantly performed by women, and had been severely undervalued.
In 2022, the Fair Work Commission approved an interim 15% wage increase for workers directly providing aged care services. However, the union expressed dissatisfaction, arguing it was insufficient to address the severe workforce shortages in the sector. Research showed that while aged care work had become more valuable as it professionalized, this increased value was not reflected in the federal government’s industry award system.
On 15 March 2023 (Thursday), the Commission announced its decision: all workers providing care services in the aged care sector would receive an 18-28% pay increase, inclusive of the previous 15%. Support staff — including laundry workers, cleaners, and food service assistants — would receive a 6.8% increase.
According to data from Australian job site Seek, the current annual salary for aged care workers in Australia typically ranges from AUD 60,000 to AUD 70,000. With a 28% increase, this translates to an additional AUD 16,800 to AUD 19,600 per year.
Gerard Hayes, National President of the Health Services Union (HSU), enthusiastically declared: “This marks a historic step that will lead our aged care industry into a new era filled with dignity and respect. Over the past decade, aged care workers have suffered grossly unfair low pay, and now these hardworking employees have finally received the wage justice they deserve.”
Prime Minister’s Statement: Workers Deserve Respect and Better Pay
This pay rise decision will benefit over 200,000 aged care workers across residential facilities and home care services. The wage increase was also a key recommendation of the Royal Commission into Aged Care Quality and Safety, which found that staff shortages had led to widespread overtime, neglect, and mistreatment of elderly people across the sector. Even with government funding, the aged care industry has struggled to provide adequate services.
Prime Minister Anthony Albanese stated: “Ensuring that Australia’s elderly can enjoy dignity and respect in their later years means that the workers who care for them should also receive the recognition and more reasonable pay they deserve.”
The Minister for Employment and Workplace Relations, the Minister for Health and Aged Care, and the Minister for Aged Care also issued a joint statement welcoming the Fair Work Commission’s decision, saying, “At the beginning of our term, we submitted a submission to the Commission clearly supporting the wage increase.”
