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Know the Changes to the Aged Care Modern Award

Modern Awards

4 Mar 2025 (Last updated 3 Sept 2025)

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If you’re a business owner or employer in the Aged Care Industry, you need to be aware of the changes to the aged care award and how these could impact your business and employees.

Latest changes to the aged care award

The Fair Work Commission (FWC) has determined award wage increases for many aged care workers, ranging between 2.3% and 13.5%. Effective from 1 January 2025, the award wage for aged care workers increased. For some workers, the award wage increase will be in two phases, with the second phase occurring on 1 October 2025.

The Commission has also updated the Aged Care Award to:

  • Add a definition of ‘direct care’ employee to clarify their role in the aged care sector
  • Add a new classification structure for direct care workers

The classification schedule will also be updated to reflect the indicative duties and qualifications for general and direct care employers. Nursing assistants working in residential care settings in the aged care industry and who are currently covered by the Nurses Award will be covered by the Aged Care Award from1 January 2025. The schedule will contain tables to help identify an employee’s new classification.

This includes the reclassification of direct care employees covered by the Aged Care Award and nursing assistants from the Nurses Award.

Pay rate increases

The award wage increases are applicable to:

  • Assistants in nursing
  • Personal care workers
  • Home care workers
  • Recreational activities officers (lifestyle workers)
  • Ancillary staff- administration staff, maintenance staff, gardeners, laundry hands, cleaners and food services assistants

Wage increases are applicable to workers on the Aged Care Award 2010, and the Social, Community, Home Care, and Disability Services Industry Award 2010 (SCHADS Award) and the Nurses Award.

The increase applies to:

  • Direct care workers covered by the Aged Care Award including nursing assistants who were previously covered by the Nurses Award
  • General care workers covered by the Aged Care Award
  • Aged care employees covered by the SCHADS Award including nursing assistants who were covered by the Nurses Award.

These wage increases add upon the 15% award wage increase provided in 2023 to:

  • Registered nurses
  • Enrolled nurses
  • Assistants in nursing
  • Personal care workers and home care workers
  • Head chefs and cooks
  • Recreational activities officers (lifestyle workers)

From 1 January 2025, general workers covered by the Aged Care Award receive a 3% increase to their minimum pay rate.

For direct care employees, how the increases to their minimum pay rate is applied depends on the size of the increase. These employees include:

  • Direct care workers in the Aged Care Award, including nursing assistants previously covered by the Nurses Award
  • Home care employees – Aged care in the SCHADS Award, including nursing assistants previously covered by the Nurses Award.

Other important changes

From 1 January 2025, home care worker classifications will be split into two streams in the SCHADS Award. A new classification schedule will be added to the Aged Care Award.

From 1 January 2025, nursing assistants currently covered by the Nurses Award who perform aged care work in the aged care sector will be covered by either:

  • The Aged Care Award, or
  • The SCHADS Award.

Which award covers these employees will depend on their employer’s industry and the nature of the work performed.

Creating better workplaces with Peninsula

Aged care workers and the aged care industry is crucial to Australia and its economy, providing essential care and premium services to aging residents. These award increases will have a beneficial impact on thousands of employees and businesses in Australia.

Peninsula provide business owners and employers in the healthcare industry with expert help and guidance in understanding wages, award classifications, and pay rates. Call for free initial advice.

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