On 21 February the Fair Work Commission determined that an interim increase of 15% be applied to minimum wages for:
- Direct care and nursing workers under the Awards*
- Head Cooks (only the most senior chef or cook engaged in a facility)
- Recreational Activities Officers / Lifestyle Officers / Diversional Therapists
It takes effect from or after 30 June 2023. The Australian Government had indicated a commitment to fund a 10% increase from 1 July 2023, and a remaining 5% from mid-2024. The Government has not yet made comment about the commission’s decision to enact a 15% increase from 30 June 2023. The industry does not have the capacity to absorb the remaining 5% increase. The Aged and Community Care Providers Association and the Australian Nursing and Midwifery Federation have urged the government to meet the full cost of the wage increase as soon as the increase is effective.The AFR reported today (27 Feb) that “the 15 per cent wage rise will cost an estimated $1.9 billion a year in funding and add pressure to the budget after the FWC rejected a government proposal to stagger it over two years”.
* listed awards:
- Aged Care Award 2010
- Nurses Award 202
- Social Community, Home Care and Disability Services Industry Award 2010.
This is an interim decision and the Commission is continuing to review some of the other classifications of employees in the Aged Care Award.
For detailed information about the decision, go to:
https://www.fwc.gov.au/hearings-decisions/major-cases/work-value-case-aged-care-industry
https://www.afr.com/work-and-careers/workplace/aged-care-providers-refusing-to-pass-on-full-15pc-wage-rise-20230226-p5cnm5