The 2024 wage increase marks a pivotal moment for the Aged Care sector.
This decision comes after lengthy ongoing discussions surrounding the wages and working conditions of those employed in the aged care industry in Australia.
Understandably, employers are anxious about the implications it will have on their day to day business operations.
While the Aged Care Award Pay Rise is a welcome development, it also highlights the broader challenges facing Australia’s aged care system. The sector continues to grapple with issues such as funding constraints, staff shortages, and quality of care concerns, all of which have been exacerbated by the COVID-19 pandemic.
Direct Care vs Indirect Care
The 2024 work value case has significant implications for aged care employees, particularly in distinguishing between Direct Care and Indirect Care roles. This decision affects the classification structure under key awards such as the Aged Care Award, Nurses Award, and SCHADS Award.
Direct Care employees, involved in providing hands-on care to residents, are recognised for their vital contributions, leading to potential adjustments in their classification and remuneration.
On the other hand, Indirect Care employees, like administrative staff, might undergo re-evaluation in light of their work value compared to Direct Care roles.
Gender Equality
The decision also shed light on gender inequality determinations within the aged care sector. Historically, caregiving roles have been predominantly filled by women, often undervalued and underpaid compared to traditionally male-dominated occupations.
The work value case decision reflects a broader push for gender equality by re-assessing the value of roles within the aged care workforce and ensuring fair compensation regardless of gender. This development reflects ongoing efforts to address systemic inequalities and promote a more equitable and sustainable aged care sector.
Classifications under the Aged Care Award, Nurses Award and SCHADS
The lead up to this decision stems from long standing concerns regarding worker pay and recognition within the aged care industry. With growing demands for high-quality care and an ageing population, the need to attract and retain skilled workers in the sector has become increasingly urgent.
Previous disparities in pay and recognition between Direct and Indirect Care roles have prompted calls for a re-evaluation of the classification structure to better reflect the value of all roles within aged care settings.
This decision marks a significant step towards rectifying these disparities and ensuring a fair and equitable working environment for all aged care employees in 2024 and beyond.
While the aged care wage increase was a step in the right direction, more comprehensive reforms and resources to help employers are needed to ensure the long-term sustainability of this sector.
Award Interpretation for the Aged Care Award Pay Guide
The upcoming changes to pay rates, allowances and Award rules will mean a top down effort of reviewing all employment contracts, potentially re-classifying staff and updating to new rates.
We are here to help Aged care employers through this transition.
We believe that each team comes with their own unique set of needs, challenges and strengths. Where compliance is rigid and tiresome, Fairtime has resources on hand to guide you through this space.
What is Fairtime?
Fairtime is timesheet and payroll compliance software designed to help Australian employers pay staff at the right rate.
What does it do?
When an employee enters their work hours into Fairtime, our pay rate engine converts their timesheet into a payslip with one click. Any employee, any shift pattern and at any Award classification.
We track leave and TOIL balance with custom pay calendars and pay rates. Employers often sync Fairtime with XERO or MYOB so that their pay slips become instantly available, saving them hours of manual entry.
How to use Fairtime
This is the most comprehensive A to Z compliance option for businesses in the Aged Care and SCHADS space. Our dedicated support team is on hand to help you during implementation and beyond.
We also provide Free Payroll Health Checks to help you understand your problems better.
Our affiliate law firm, Fairtime Legal, advise businesses on employment law issues like contracts or pay rate classifications for your staff.
Fairtime can also be customised to help you carry out wage remediation. You can engage accountants to manually review payslips line by line to confirm an underpayment OR you can upload historical hours into Fairtime and we’ll calculate the right rate of pay.
For a copy of the current Aged Care pay rates, you can fill out the form below.
