A Full Bench of the Fair Work Commission has awarded ‘direct care’ workers a 15 per cent increase to the minimum rate, marking a significant shift in the value of the work of registered nurses, enrolled nurses and personal care workers in residential aged care over the past two decades.

At the same time, the Commission has left open the possibility of further increases across the sector in the not-too-distant future.

Which workers will this cover?

This interim decision affects the Aged Care Award 2010, the Nurses Award 2020 and the Social, Community, Home Care and Disability Services Industry Award 2010.

Satisfied that the evidence presented established that ‘the existing minimum rates do not properly compensate employees for the value of the work performed’, the Full Bench gave this interim increase to ‘direct care’ workers covered by those awards, including registered nurses, enrolled nurses, assistants in nursing, personal care workers and health care workers.  In reaching its decision, the Full Bench referred specifically to 16 uncontentious propositions including:

1. ‘The workload of nurses and personal care employees in aged care has increased, as has the intensity and complexity of the work.

3. There is an increase in the number and complexity of medications prescribed and administrated.

5. Home care is increasing as a proportion of aged care services.

10. More residents and clients in aged care require palliative care.

15. There is an expanded use and implementation of technology in the delivery and administration of care.’

The Full Bench was not satisfied that the evidence before it justified the same increase for support and administrative employees, so it did not increase their minimum rates as part of this decision.

Not a final determination

This is not the final determination.  On 22 November 2022 a Full Bench will consider how and when to phase-in wage increases as it looks at stages 2 and 3, and a more detailed review of relevant awards and wage adjustments.

These proceedings arose out of Recommendation 84 (Increases in award wages) of the Final Report of the Royal Commission into Aged Care Quality and Safety.

If you would like to discuss the potential impact of this interim decision on your business, please contact a member of our Aged Care or Employment team.

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