Aged Care Blog

aged care pay rise

Aged care pay rise increases in 2025

Revised March 2025

As part of the aged care reform roadmap, a further aged care pay rise has been implemented this year. On 1 January 2025, a 3% increase was added to pay rates for general workers under the Aged Care Award. 

Aged care pay rise 2025 breakdown  aged care pay rise graph

From 1 January 2025, general workers covered by the Aged Care Award received a 3% increase to their minimum pay rate. This included those working in aged care under the Social, Community, Home Care and Disability Services (SCHADS) Industry Award as well as workers covered in the aged care section of the Nurses Award. 

Further changes were seen on 1 March 2025, as the Nurses Award no longer covered nursing assistants who provide care in a residential aged care or home care setting. They are now covered by the Aged Care Award and the SCHADS Award, respectively, with pay points being adjusted as such. 

This is a positive outcome and one that displays recognition of aged care workers and the importance of their position in the industry. 

Aged care pay rise timeline

In previous years, the Department of Health and Aged Care, in conjunction with the Fair Work Commission funded the aged care pay rise decision to increase the minimum wage of those working within the aged care sector irrespective of individual pay reviews. 

More than 250,000 workers benefitted from the first aged care pay rise, which applied to those working under the: 

  • Aged Care Award 2010 
  • Nurses Award 2010 
  • SCHADS Industry Award 2010 

There were, however, some who missed out. Those who worked in aged care but not under these awards (grouped as ‘indirect care workers’ such as administrative employees, and chefs and cooks not in a senior position) were initially ineligible.  

Uniting NSW/ACT, one of Australia’s largest not-for-profit organisations that specialise in areas such as aged care, independent living, and community services welcomed the initial 15% aged care pay rise but anticipated the need for a further increase. Tracey Burton, Uniting’s Executive Director, expressed disappointment at those not included, claiming the decision had been ‘harmful to morale and motivation 

This decision has changed in 2025 with indirect care workers receiving a pay rise. 

Who receives an aged care pay rise in 2025?

All direct and indirect aged care workers will receive a pay rise in 2025. Previously, an aged care pay rise was only available for: 

This year, the aged care pay rise also applies to those working in general roles, such as gardeners, administrators and laundry assistants. 

What does the aged care pay rise look like for direct and indirect care workers?

Due to the aged care pay rise increases of 2025, an entry level casual aged care worker will now receive a minimum of $31.89 an hour, and a weekly minimum wage of $1,211 (based on a 38-hour week). A permanent full-time aged care registered nurse can now expect to earn an annual salary of between $85,000 – $100,000 

Indirect care workers, who were not eligible in the first round of aged care pay rises, will now be working on increased rates from January 2025. They will receive a minimum of $973.40 per week (38 hour a week basis). 

Direct care workers will have received 50% of their aged care wage increases at the start of the year and will receive the last 50% in July 2025. 

How has the aged care pay rise benefitted the industry so far?

The aged care sector is an essential industry that is growing rapidly, with the aged care worker shortage being regularly documented. The aged care pay rise has supported and hopes to support: 

  • Increasing workforce attraction and retention: aged care pay rises were introduced to help attract and retain skilled workers. Fair compensation is essential to motivate workers and ensure the availability of a dedicated and competent workforce. 
  • Improving quality care and compliance: a skilled and diverse workforce is vital for delivering safe, high-quality aged care services. Fairer wages aim to lead to motivated staff working in the aged care sector and hopefully will lead residential aged care homes to success. 
  • Meeting nurse care and increased care minutes requirements: care minutes continue to increase, going from 200 in 2023, to 215 in 2024. They will rise again in October of this year, and at present 44 of these need to be delivered by a registered nurse (and 10% from an enrolled nurse). As aged care workers are now more vital to our society than ever before, the aged care pay rise has been a way to show worker value and appreciation to meet government standards and boost workforce happiness. 

What does the future for aged care workers look like?

Aged care is a growing industry with strong career progression and a variety of job roles to choose from. Supporting Australia’s elderly population is integral to building a functional and advanced medical system. Given that it is projected 6.6 million Australians will be aged 65 and over by 2041, developing a sustainable and well rewarded workforce needs to happen now. 

This commitment to better and fairer wages for aged care workers is a significant step towards improving the aged care system, and we champion the increase for all our hardworking aged care nurses, care givers and support staff. A new Aged Care Act, coming into effect on 1 July 2025, is responding to recommendations from the Royal Commission, to improve aged care for everyone involved. If you are considering a career in aged care, now is the time to make the change. 

Looking for an aged care job? We are specialists in aged care recruitment. Contact us today. 

Register with us

Looking for a new opportunity
in the aged care sector?

Expert staffing solutions

Need staffing support on a temporary, contract or permanent basis?

Subscribe Here!

Subscribe to our blog!

Leave a Comment





Aged care blog
Meet our Sanctuary Recruitment nursing team

First published: September 2024 Getting to know our nurses on a personal as well as clinical background is important to us. When you join the Sanctuary team, the sense of community that you get through building relationships with other nurses and your consultant provides a foundation of support and opportunity. Kingsley, a AIN based in…

What is a home care package?

First published: March 2025 Home care packages are provided under the Home Care Package Program, which is partially subsidised by the government, aiming to care for those needing assistance to remain in their own homes for longer. It was found that 68% of Australians wish to age within their own homes, meaning the demand for…

What is aged care?

First published: January 2025 Aged care is a collection of services delivered to older people (usually aged 65 and over), both inside and outside of their home, that allows them to live a full, normal life. Aged care is provided on a variety of different levels, depending on the needs of the client. In Australia,…

Aged care pay rise increases in 2025

Revised March 2025 As part of the aged care reform roadmap, a further aged care pay rise has been implemented this year. On 1 January 2025, a 3% increase was added to pay rates for general workers under the Aged Care Award.  Aged care pay rise 2025 breakdown  From 1 January 2025, general workers covered…

Aged care careers

First published: April 2025 Aged care careers cover working in clinical and non-clinical roles across an array of environments including residential aged care, home care/independent living and retirement communities. There is a wealth of employment opportunities that will allow you to explore roles that fit your knowledge and skills, that you can make a long…

PALM Scheme Cohort of 2024 graduation!

First published: May 2025 On 10th May 2025, our Pacific Australia Labour Mobility (PALM) Scheme cohort of 38 participants graduated with a Certificate III in Individual Support (Ageing) from Alphacrucis University College. After an 18-week course with a four-week placement in Harts Nursing Home and Father Law Home in Suva, Fiji, our participants transitioned to…

What is the Serious Incident Response Scheme (SIRS)?

The Serious Incident Response Scheme (SIRS) is a government initiative and subsequent reporting system implemented to reduce abuse and neglect of older people receiving aged care services. SIRS is a mandatory requirement for approved aged care providers, including residential aged care homes and home care services (encompassing Home Care Packages, the Commonwealth Home Support Programme…

Enhancing aged care: Pulse Staffing Australia and Sanctuary Recruitment to deliver PALM Aged Care Expansion Program

First published: July 2024 Quality aged care is vital for ensuring that elderly people live fulfilling, healthy lives with dignity and respect. Aligned with our purpose to improve people’s lives, Pulse Staffing Australia and Sanctuary Recruitment, both part of Acacium Group, have partnered to support the delivery of the 2024 PALM Aged Care Expansion Program….

Your guide to getting involved in aged care volunteering

First published: May 2025 Aged care volunteering is an opportunity to give back to the community whilst providing companionship and support to older people whilst both living in aged care homes or receiving home care. Aged care volunteering options that are available include assisting with daily living activities to make day to day tasks easier,…

Aged care manager salary guide

First published: June 2025 Are you wanting to step into an aged care management role? These jobs offer a fulfilling career where you can make a meaningful impact while earning a competitive salary. In this blog, we’ll look at the aged care manager salary you’ll receive, taking into consideration factors that can influence your pay…