The minimum wage is increasing for direct care workers

A Full Bench of the Fair Work Commission has issued a decision about the work value claim Health Services Union and Australian Nursing and Midwifery Federation (ANMF) to vary the Aged Care Award 2010, Nurses Award 2020 and the Social, Community, Home Care and Disability Services Award 2010 (SCHADS Award).

Direct care workers, including nurses and personal care workers, were awarded an interim 15 per cent minimum wage increase by the Fair Work Commission (FWC) in November 2022. The increase was in recognition that gender-based assumptions have long underpinned the value ascribed to aged care work, with the result that aged care workers have historically been underpaid.

The February 2023 decision confirms the timing and phasing of the interim increase, and that the making of interim increases is necessary to achieve the modern awards objective for:

• Direct care workers under the three awards;
• Head chefs/cooks under the Aged Care Award (Levels four to seven) provided the employee is the most senior chef or cook engaged in a facility).
• Recreational activities officers/lifestyle officers under the Aged Care Awards.

The decision confirms the interim increase to minimum wages in the three Awards will take effect from 30 June 2023.

Impact on employers

Employers that are respondents to the Aged Care Award 2010, Nurses Award 2020 and SCHADS Award should review the draft determinations on the FWC website. The FWC will receive submissions from interested parties concerning the draft determinations by no later than 1 March 2023. Final determinations will be issued before 30 June 2023.

About our authors

Samantha Shariev is a qualified Solicitor at Citation Legal. She regularly advises and supports our clients with a wide range of workplace and employment issues.

Michal Roucek is a Partner at Citation Legal and has worked in Sydney and London exclusively in workplace and industrial relations law since 2009. He is the head of Citation Legal’s Ageing, Disability, Health and Human Services Team and his experience extends all aspects of the employment relations and IR sphere.