Aged Care Work Value Case – Stage 3 Decision

On 15 March 2024, the Fair Work Commission (FWC) handed down its ‘Stage 3’ decision in the long-running work value case, which has been underway since 2021. The claim, initiated by the HSU, has pursued wage increases for employees engaged in the Aged Care sector who provide direct care to aged persons under the Nurses Award 2020, the Aged Care Award 2010 and the Social, Community, Home Care & Disability Services Industry Award 2010.

UPDATE: In September, the FWC published the final determinations to vary each award from ppc 1 January 2025.

After having awarded a 15% “interim” increase to these workers from ppc 1 July 2023, the FWC has determined further wage increases are warranted for direct care employees employed under the Aged Care Award 2010 as well as Home Care (Aged Care) Workers employed within the Social, Community, Home Care & Disability Services Industry Award 2010. The classification structure of direct care workers under both awards will be refined, with classifications for Home Care (Aged Care) Workers being brought into line with Personal Care Workers under the Aged Care Award 2010. Assistants in Nursing (AIN’s) working in the aged care sector will also transition from the Nurses Award 2020 to be captured by the Aged Care Award 2010.

There will be no other immediate changes to the classifications or rates applicable under the Nurses Award 2020, with future wage increases to be dealt with as part of the Nurses and Midwives work value case brought by the Australian Nursing and Midwifery Federation, currently in progress before the FWC.

The Full Decision (102 pages) can be viewed here, with the Summary available here.

Operative date for Stage 3 increases

Late in June, the FWC confirmed that the Stage 3 wage increases for direct care Aged Care workers and Home Care (Aged Care) Workers will occur in two tranches, with the first tranche rolling out as follows:

  • if half of the total increase is more than 3 per cent, half of the total increase should take effect on 1 January 2025;
  • if the total increase is more 3 per cent, but half of the total increase is less than 3 per cent, a 3 per cent increase should take effect on 1 January 2025; and
  • if the total increase is less than 3 per cent, the total increase should take effect on 1 January 2025.

In respect of the second tranche of increases for direct care Aged Care workers and Home Care (Aged Care) Workers (being whatever increase remains to be flowed on, if any, after the first tranche of increases takes effect from 1 January 2025 as outlined above), the operative date will be 1 October 2025.

The final determinations will make clear what the applicable rates will be for direct care Aged Care workers and Home Care (Aged Care) Workers from 1 January 2025 and 1 October 2025*, but the award variations will not be settled by the FWC until late-July, at the earliest.

*Note that rates applicable from 1 October 2025 will be further adjusted by any increase awarded as part of the 2024-25 Annual Wage Review (which would take effect 1 July 2025).

Determinations issued

On 11 September 2024, the FWC published determinations varying each award, giving effect to the Stage 3 decision. The amendments become operative from the first pay period commencing (ppc) on or after 1 January 2025, and can be viewed here.