Aged care workers will get pay rises of up to 28 per cent after landmark decision

Tens of thousands of aged care workers will receive a major pay rise after the Fair Work Commission recommended the increase.

The Health Services Union said the decision meant aged care workers had won "wage justice". Source: AAP / Dan Himbrechts

Aged-care staff are poised to get a wage rise of up to 28 per cent after the Fair Work Commission handed down a landmark decision for the sector.

More than 100,000 indirect employees in the sector will enjoy a wage boost after the Health Services Union (HSU) lodged an application for a 25 per cent across-the-board increase in 2020.

Personal carers will get an increase between 18 and 28 per cent, home care staff will get a rise of between 15 and 26 per cent and there will be a 6.8 per cent increase for those involved in support services under the commission's decision, delivered on Friday.

The commission awarded an interim 15 per cent pay rise to direct care employees at the end of 2022, with the industrial umpire saying this was plainly justified by work-value reasons.

Since then, the union has continued to push for a comprehensive increase for all staff.

HSU national president Gerard Hayes said it was a historic improvement for those working in the sector.

"(This decision) will usher in a new era of decency and dignity in our aged care homes," he said.

Gerard Hayes said it was it was a historic improvement for those working in the sector. Source: AAP / Bianca De Marchi

"For the last decade aged care has been held together by the goodwill and commitment of a severely underpaid, insecurely employed workforce.

"Today those workers have won wage justice."

Since coming into office, the federal government has backed pay rises for those on low and award wages, as well as funding increases for aged care staff.

The commission's decision will be finalised after submissions from the interested parties, with the phasing-in schedule still to be decided.

The higher recommended wages include the 15 per cent rise for direct-care workers.

Economists have also backed the push for higher wages in the sector.

"In our view, the benefits of improving pay and conditions in undervalued, low paid, female-dominated care sectors — including better attraction and retention of workers — outweigh the costs of any marginal inflationary effect of a one-off bump in the wage price index," ANZ senior economist Catherine Birch said in November.

The federal government has sought to support pay rises for aged care staff. Source: AAP / James Ross

Catholic Health Australia called on the government to fully fund the rise expected to come from Friday's decision.

"We strongly support the claim to raise the wages of dedicated, compassionate and hardworking staff, especially as cost of living pressures mount," director Laura Haylen said.

"The federal government must deliver on its commitment to fully fund these wage rises as soon as possible, including any leave entitlements. We believe that we can work together to ensure staff are paid as quickly as possible without diverting existing funds from quality care and support."