Changes to Modern Awards Covering Aged Care Workers – Award Increases effective 1 January 2025
- Date of Change:
- 06 December 2024
- Takes Effect:
- November 2024
What’s Happened?
The Fair Work Commission has implemented major updates to modern awards in the aged care sector effective 1 January 2025. These changes include:
Pay Rate Increases:
- Minimum wages for eligible employees under the Aged Care Award 2010 and SCHADS Award have increased.
- Direct care workers and general care workers will see pay increases based on their classification.
- From 1 January 2025, general workers covered by the Aged Care Award receive a 3% increase to their minimum pay rate.
- Some employees will receive further increases from 1 October 2025.
Classification Updates:
- New classification structures have been introduced for direct care employees in the Aged Care Award 2010 and home care employees in the SCHADS Award. This includes reclassification for nursing assistants previously under the Nurses Award 2020.
Coverage Changes:
- Nursing assistants providing aged care services are now covered under the Aged Care Award 2010 or SCHADS Award, depending on their role and employer.
Why is this Important?
These changes are significant for aged care providers as they:
- Ensure Pay Equity: The wage increases reflect the evolving responsibilities and skills required in aged care roles.
- Compliance Requirements: Employers must review and update payroll systems and ensure proper classification of employees under the new structures.
- Operational Planning: Strategic adjustments may be needed to budget for the increased payroll costs.
These updates aim to promote fairness, sustainability, and improved service quality in the aged care sector. Employers are encouraged to use the Pay and Conditions Tool for specific rates and compliance checks P.A.C.T Pay Calculator – Find your award
Next Steps
- Review the updated pay guides in the source documents above for detailed classifications and wage rates.
- Update payroll systems, communicate to your employees and update employee contracts, recruitment ads etc as necessary.
- Prepare and budget for the second tranche of wage increases in October 2025.