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Aged Care Award

The Aged Care Award sets out the minimum terms and conditions of employment for workers in the aged care sector, covering wages, classifications, allowances, and entitlements. Understanding its key elements is crucial for both employers and employees to ensure fair and lawful working conditions.

Coverage Under the Aged Care Award

The Aged Care Award applies to employees engaged in providing aged care services, including:

  • Personal care workers assisting elderly individuals with daily tasks.

  • Nursing assistants working in residential care facilities.

  • Support staff including cooks, cleaners, and administrative personnel within aged care services.

Wage Classifications and Career Progression

The Aged Care Award establishes different classification levels that determine pay rates and responsibilities. These levels ensure fair progression as employees gain qualifications and experience.

Classification Levels:

  • Level 1 – Introductory: Applies to employees new to the industry with minimal experience. Employees in this category must be provided with adequate training and supervision.

  • Level 2 – Direct Care Worker: Employees with some experience who provide general care and support services.

  • Level 3 – Qualified Carer: Requires a Certificate III in Individual Support (Ageing) or equivalent qualification.

  • Level 4 – Senior Carer: A more experienced employee responsible for mentoring junior staff and handling complex care needs.

  • Level 5 – Specialist Care Worker: Includes employees with advanced training in aged care who take on additional responsibilities.

  • Level 6 – Team Leader or Coordinator: Supervisory role managing care teams and ensuring compliance with aged care regulations.

Allowances and Penalty Rates

The Aged Care Award includes additional pay entitlements for employees working under specific conditions:

  • Shift Penalties: Higher pay rates apply for evening, night, weekend, and public holiday shifts.

  • Overtime Pay: Employees required to work beyond their ordinary hours are entitled to penalty rates.

  • Uniform and Meal Allowances: Employees may receive allowances for purchasing and maintaining uniforms, as well as meal breaks when working extended hours.

Hours of Work and Breaks

Under the Aged Care Award, employees are entitled to:

  • A standard workweek of 38 hours, with additional hours classified as overtime.

  • At least two consecutive days off per week unless mutually agreed otherwise.

  • Paid meal breaks in shifts exceeding 5 hours.

Leave Entitlements

Employees covered under the Aged Care Award are entitled to:

  • Annual Leave: Four weeks of paid leave per year (or five weeks for shift workers).

  • Personal/Carer’s Leave: 10 days per year for illness or to care for an immediate family member.

  • Long Service Leave: Entitlements vary by state and length of service.

  • Parental Leave: Up to 12 months of unpaid leave with the option to extend.

Employer Compliance and Responsibilities

Employers in the aged care sector must: ✔ Ensure all employees are correctly classified and paid according to the Award. ✔ Provide payslips and keep accurate records of hours worked and leave taken. ✔ Apply penalty rates and allowances appropriately. ✔ Maintain compliance with Fair Work regulations to avoid legal consequences.

How Fairtime Simplifies Aged Care Award Compliance

Manually tracking aged care payroll can be complex. Fairtime’s payroll software automates compliance by:

  • Applying correct pay rates and penalty loadings.

  • Ensuring seamless integration with payroll systems like Xero and MYOB.

  • Reducing administrative errors and compliance risks.

 

The Aged Care Award contains at least 33 clauses which may have relevance to a particular employment relationship. The Award also covers things like Coverage, Classification, Allowances, Training, Termination & Dispute Resolution.

The Aged Care Award also lists out the rates of pay that apply to different staff employed under an Award. Before assigning a pay rate to an employee the challenge for employers is to confirm what classification applies to that worker. For example, different pay rate ‘levels’ apply to different employees depending on a variety of factors including obvious things like their prior industry experience.

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About Fairtime

Fairtime is timesheet and payroll compliance software designed to help Australian employers pay staff at the right rate.When an employee enters their work hours into Fairtime, our pay rate engine converts the their timesheet into a payslip with one click.

Our  software is quick to set up and easy to use. To find out more, BOOK A DEMO with our Sales team today.If you have a question about the Aged Care Award, our team can also help you answer it.

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