Australia's aged care sector has seen a series of substantial wage increases in recent years, primarily driven by the Fair Work Commission's (FWC) Aged Care Work Value Case. This landmark case recognised that aged care work has historically been undervalued, leading to corrective pay adjustments. As a result, the minimum hourly rate for aged care employees is set by specific industry awards and is higher than the National Minimum Wage.
The Aged Care Work Value Case and 2025 Pay Rises
The FWC's Aged Care Work Value Case has resulted in multi-stage pay increases for aged care workers. Key increases implemented throughout 2025 include:
- January 1, 2025: A 3% pay rise was applied to the minimum rates for general workers covered by the Aged Care Award and other relevant awards, such as the Social, Community, Home Care and Disability Services (SCHADS) Industry Award.
- March 1, 2025: The first tranche of wage increases for registered and enrolled nurses in aged care began.
- July 1, 2025: A 3.5% national minimum wage increase took effect, with minimum award rates also being amended. Direct care workers under the Aged Care Award received the final 50% of a previously determined wage increase.
- October 1, 2025: An additional pay rate increase takes effect for eligible aged care workers and some nurses.
- Future increase: A further pay boost for aged care nurses is scheduled for August 1, 2026.
Minimum pay rates under the Aged Care Award (October 2025)
For eligible employees under the Aged Care Award [MA000018], minimum hourly rates vary based on classification level. The following table provides minimum hourly rates as of the first full pay period on or after October 1, 2025, for permanent employees.
| Classification | Minimum Hourly Rate (October 2025) | Scope of Role |
|---|---|---|
| Aged care employee - level 1 | $33.14 | Entry-level positions and introductory roles. |
| Aged care employee - level 2 | $34.45 | Direct carers with some experience. |
| Aged care employee - level 3 | $35.78 | Qualified workers, often with a Certificate III. |
| Aged care employee - level 4 | $36.20 | Senior carers or those with specific responsibilities. |
| Aged care employee - level 5 | $37.43 | Specialist roles, including those with Cert IV qualifications. |
| Aged care employee - level 6 | $39.44 | Team Leader positions or equivalent senior roles. |
| Aged care employee - level 7 | $40.15 | Highest classification level for aged care employees. |
Impact on Different Worker Types
The pay increases from the Aged Care Work Value Case have impacted several categories of workers within the sector.
Direct Care Workers Direct care workers, such as personal care workers, personal care assistants, and home care employees, have received the most significant increases. The FWC decisions primarily addressed the undervaluation of direct care roles, resulting in a series of phased wage boosts throughout 2023 and 2025.
Indirect Care Workers Initial pay increases did not cover indirect care workers, such as administrative staff, cooks, and cleaners. However, this changed in 2025, with indirect care workers receiving their own pay rise from January 1, 2025.
Nurses Registered and enrolled nurses working in aged care have also received increases following a separate decision within the Work Value Case. The increases for nurses began on March 1, 2025, with further boosts scheduled for October 1, 2025, and August 1, 2026.
Casual and overtime rates
For casual aged care employees, the minimum hourly rate is higher to compensate for not receiving entitlements such as paid sick leave or annual leave. This is known as a casual loading, which is a 25% increase on top of the permanent employee's minimum pay rate. Overtime, weekend, and public holiday rates are also set out in the Aged Care Award and result in higher hourly pay. These rates vary depending on the day and time of the shift.
How to check your specific entitlements
The minimum pay rates listed in the Aged Care Award are just one part of an employee's entitlements. It is crucial for aged care workers to check their specific award classification to ensure they are being paid correctly. The Fair Work Ombudsman provides a free online tool and detailed pay guides to help employees understand their full rights and entitlements.
Conclusion
Thanks to recent Fair Work Commission decisions, aged care workers in Australia are benefiting from multi-staged pay increases that have elevated their minimum award rates significantly. For those wondering what is the minimum wage in Australia for aged care, the answer is no longer a simple figure but a series of rates determined by the Aged Care Award, with regular updates from the FWC ensuring fair remuneration for this vital work. By staying informed about their award classification and checking the official Fair Work guides, aged care employees can ensure they are being paid correctly.
