The Fair Work Commission has recently announced updates to several Awards that will affect employees involved in direct aged care work. These changes will go into effect from the first full pay period starting on or after 1 January 2025.
The Awards impacted include:
Pay Increases for Eligible Employees
Starting with the first full pay period on or after 1 January 2025, minimum pay rates will increase for qualified employees in the aged care sector. The exact amount of the increase will vary based on the applicable award and classification of the employee. This pay increase will be applicable to:
– Direct care workers under the Aged Care Award, including those nursing assistants previously covered by the Nurses Award
– General care workers under the Aged Care Award
– Aged care employees under the SCHADS Award, including nursing assistants who were formerly under the Nurses Award
The Fair Work Ombudsman has made the new Pay Guides available for the Aged Care Award, SCHADS Award, and Nurses Award. Additionally, further pay increases for certain workers will take effect from 1 October 2025, although these Pay Guides have not yet been released.
Updates to the Aged Care Award
The Aged Care Award has been revised to:
– Include a clear definition of a ‘direct care’ employee to better define their responsibilities within the aged care sector
– Introduce a new classification structure for direct care workers, effective from the first full pay period that begins on or after 1 January 2025.
Changes for Nursing Assistants in Aged Care
From the first full pay period following 1 January 2025, nursing assistants currently under the Nurses Award who work in aged care will be assigned to either:
– The Aged Care Award, or
– The SCHADS Award.
The appropriate award will depend on the employer’s industry and the nature of work performed. Both the Aged Care Award and the SCHADS Award will include new provisions to maintain the annual leave entitlements for employees previously covered by the Nurses Award as of 31 December 2024. As a result, those employees will continue to have access to 5 weeks of annual leave, or 6 weeks for shift workers.
New Classification Schedule for Home Care Employees in SCHADS Award
Beginning 1 January 2025, the classifications for home care workers under the SCHADS Award will be divided into two categories. The existing Home Care employee classification schedule (Schedule E) will now be known as Home Care Employees – Disability Care. A new classification schedule (Schedule F) titled Home Care Employees – Aged Care will be introduced.
Furthermore, a new classification translation schedule (Schedule G) will be included in the SCHADS Award. This new schedule will provide tables to assist in identifying employees’ new classifications, including those for home care employees covered by the SCHADS Award and nursing assistants from the Nurses Award.
For more details, refer to the FWC Determination.