📈 Significant Pay Increases for Aged Care Workers
The Fair Work Commission (FWC) has introduced further updates to Aged Care Award Pay Rates in 2025, following the 25% wage increase that came into effect in 2024. These changes bring another layer of adjustments that employers must carefully navigate.
As of 1 January 2025, minimum wages for aged care workers increased by 3%, with further adjustments set for 1 October 2025 based on job classifications. These changes are aimed at improving pay fairness, retention, and recruitment across the industry.
Employers should act now to ensure compliance and update their payroll systems accordingly.
💰 Why Are Pay Rates Changing?
The Work Value Case conducted by the FWC found that aged care workers have been historically undervalued. These updates aim to:
- Ensure fair compensation for employees performing demanding and essential work.
- Improve staff retention and job satisfaction.
- Attract new workers into the sector by offering competitive wages and clearer career progression pathways.
While these changes are a welcome step forward for employees, they also pose challenges for employers, including payroll adjustments, contract reviews, and compliance management.
👨🌾 Who Is Impacted?
These changes apply to all employees under the Aged Care Award. Additionally, nursing assistants in residential care, who were previously covered under the Nurses Award, are now included under the Aged Care Award.
👩🌾 Employees:
- Benefit from higher wages and clearer career progression.
- Expect increased job security as industry conditions improve.
👩💼 Employers:
- Must reclassify staff under the updated structure.
- Ensure payroll systems align with the new wage standards.
- Adapt to new compliance requirements to avoid penalties.
Get Ready for future Aged Care Award Pay Rate Changes
The 2025 updates to the Aged Care Award further reinforce the importance of fair wages in the industry. Employers must stay proactive by:
👉 Keeping up-to-date with wage increases. 👉 Ensuring compliance with classification updates. 👉 Using Fairtime to streamline payroll and avoid mistakes.
For the latest Aged Care Award Pay Rates, download our updated guide below!
