The Federal Government has announced it wills tump up $1.2 billion to pay for increases for the nation’s 350,000 aged care workers under the Living Longer Living Better aged care reforms.

Minister for Ageing Mark Butler said today that this funding will flow from July through a ‘Workforce Supplement’, delivering pay rises for aged care nurses, care workers and others in the aged care industry. 

An additional 1% pay rise will be available above minimum annual wage increases or other wage rises negotiated through enterprise bargaining agreements for workers employed by aged care providers that meet the requirements of a Workforce Compact. 

This means a personal care worker currently paid the award rate and who is employed by an aged care provider that meets the requirements would effectively see a pay rise of up to 18.7% over four years. Enrolled nurses would receive 25% higher pay and registered nurses 29.9% higher pay in the same situation.

“We know that most Australians who pursue a career in aged care do it for much more than the financial reward, but pay rises of that level are a big incentive to work in this growing industry,” Mr Butler said.

Mr Butler said the Workforce Supplement was part of the Addressing Workforce Pressures Initiative which would be delivered in two parts, through the Aged Care Workforce Compact and through an Aged Care Workforce Development Plan. 

The Workforce Supplement will be paid to providers that meet the conditions of the Workforce Compact, which was developed in consultation with providers and unions. Providers will be required to pass the Supplement on as higher wages.

“The Compact is a key component of the Government’s $3.7 billion aged care reform package and delivers on our commitment to better pay and conditions for Australia’s aged care workers, who are the heart and soul of the aged care system,” Mr Butler said.