Why are aged care workers getting a pay rise?

Thanks to a case argued and won in the Fair Work Commission (FWC) by our union, AINs and PCWs working in aged care facilities across Australia will soon receive a significant pay increase.

Registered Nurses and Enrolled Nurses will also receive further pay increases (in addition to the 15% increase they received in 2023), but the amount of those additional increases and the timing is still to be decided.

The FWC agreed with the union’s claim that the work of aged care nursing and care staff has historically been undervalued because of assumptions based on gender. They also found that the wage rates for aged care nurses under the Nurses Award were incorrect because they do not reflect the professionalisation of nursing work. Union members argued that aged care employees have been undervalued and underpaid for far too long, and that base Award rates should be significantly increased.

The FWC agreed with our arguments and decided to “correct” award wages to more accurately reflect the value of your work.

Didn’t we already receive a 15% pay rise in 2023?

Yes. The Fair Work Commission (FWC) made an interim decision to increase aged care Award wages by 15% from 30 June 2023. 

Work value cases of this kind often take many months or even years to resolve. The interim decision was made because the FWC considered the award wage rates to be so incorrect that they required immediate intervention. 

After further campaigning from unions, the Federal Government committed to give aged care providers $11.3 billion to fund an increase for every direct care worker in aged care, including those earning above Award rates.

However, this was not the end of our case – and in March 2024, the FWC handed down the next part of its decision.

What did the Fair Work Commission decide in March 2024 for AINs and PCWs?

The Fair Work Commission (FWC) decided to increase base Award wages for AINs and PCWs by up to an additional 12%, depending on your qualification and years of experience. 

So, including the first 15% increase in 2023, base Award wages for AINs and PCWs will have increased by between 23% and 27% as a result of this work value case. 

The base hourly Award rates will be:

• $32.21 per hour for those with a Certificate III.
• $33.50 for AINs and PCWs who have at least four years’ experience and who have undertaken additional training (e.g. ‘Administer and Monitor Medications’ (HLTHPF007), ‘Provide Support to People Living with Dementia’ (CHCAGE005) and/or ‘Deliver Care Services Using a Palliative Approach’).
• $34.78 per hour for AINs and PCWs who perform higher level duties, for which they are required to have a Certificate IV in Ageing Support (or equivalent).
• $36.07 per hour for AINs and PCWs who perform higher level duties, for which they are required to have a Certificate IV in Ageing Support (or equivalent) and who are required to supervise and train other PCWs or AINs (E.g. team leader).  

These rates will be increased again in July 2024 following the FWC’s annual review of award wage rates.

What did the Fair Work Commission decide in March 2024 for RNs and ENs?

Aged care RNs and ENs will have to wait longer than everyone else for the increases to come into effect.

The Fair Work Commission (FWC) decided to wait until the outcome of our union’s separate case is known – one which is considering the pay for all nurses outside of aged care. This decision is still several months away.

Having said that, the FWC did indicate that RNs and ENs will receive a significant pay increase when the time comes.

• Enrolled Nurses: The FWC decided that the base wage rate for ENs who are required to supervise PCWs and AINs should be at least $36.07 per hour in the new classification structure. So, if you are an EN and you supervise PCWs and/or AINs, your award rate is set to increase further, by between 11.8% and 17.6%.
• Registered Nurses: The Commission also determined that any future increase to the award rate for RNs with a four-year degree should align with the pay rates of similarly qualified professionals in male-dominated industries. This means a further increase in Award rates for those RNs of about 13%. While it is not decided how this would translate to the majority of RNs who have a three-year degree qualification, we can cautiously anticipate similar increases.
  
  

When will the next increase to Award rates for AINs and PCWs happen?

The Fair Work Commission (FWC) will decide around May 2024 when these Award increases must apply for AINs and PCWs.

Unfortunately, RNs and ENs will have to wait longer, as the FWC decided not to make a decision on Award rate increases until after a separate case has concluded. While we don’t know when this will be, we expect a decision late this year or early next year.

Does this mean some PCWs and AINs could be paid more than ENs, because of their next Award increase?

As things stand now, it does seem likely that pay rates for some PCWs may increase above the rates of some ENs, once the new Award increases come into effect (although we do not yet know when this will be). 

This has understandably caused significant concerns for ENs and raises some practical issues across the industry. The QNMU has been involved in urgent discussions about this and is seeking that the FWC fix this problem before it arises to ensure EN wages do not fall below PCW wages. 

What’s the difference between the Award and an Enterprise Agreement?

An Award (such as the Aged Care Award or Nurses Award) sets the minimum wage and a set of standard conditions for each industry. No employer can offer you a lower base rate of pay than the one that would apply to you under the relevant Award. 

An Enterprise Agreement, however, is an agreement negotiated between your union (the QNMU) and your employer, which sets out your wages and conditions. Often these wages and conditions are higher than the Award minimums and have been achieved by union members working together to argue for better pay and conditions. 

I'm an AIN/PCW and I am already paid more than the new Award rate. Will I still get another pay rise? 

Most QNMU members are paid above Award rates that come from an Enterprise Agreement. If the new Award rate rises above your current pay rate (including an Enterprise Agreement rate), you must be paid the higher Award rate.

In 2023, when Award rates increased by 15%, the Federal Government provided $11.3 billion to ensure every nurse and carer received the full pay rise, including those earning above-Award rates.

The Federal Government will now decide whether it will fund employers to only ‘top up’ wage rates to meet the new Award rate, or whether it will spend more to ensure every worker receives the full increase, even if they are already paid above award. Once we know how this increase will be funded, we will develop tools to assist you and your union colleagues to check you are being paid correctly. 

What did the Fair Work Commission decide about moving AINs to the Aged Care Award? 

As part of the case, the Fair Work Commission also ruled that all AINs who are currently covered by the Nurses Award will in the future be classified as personal care workers and be covered by the Aged Care Award.
 
This will not have any direct impact on AINs who are employed under an Enterprise Agreement, because your Agreement will continue to apply regardless of the changes to the Award. You are employed as AINs, not PCs, and that will not change as a result of this decision.

There may be a small number of AINs who are not covered by an Enterprise Agreement. These AINs will notice changes to their conditions of employment when the decision takes effect, but they will still receive the additional week of annual leave provided in the Nurses Award. They will also become entitled to higher penalty rates for public holiday work.

Is there going to be a new classification structure for AINs/PCWs? 

Yes. The Fair Work Commission decided on a new classification structure for AINs/PCWs comprising six grades: