Wage increases: Aged Care, SCHADS & Nurses Awards, early childhood sector

We were pleased to hear recent Government announcements relating to wage increases for staff across various NFP sub-sectors.

1. Aged Care, SCHADS & Nurses Awards

The Fair Work Commission recently announced changes to several Awards, impacting some of our clients. Changes start from the first full pay period on or after 1 January 2025. Affected Awards include:

• Aged Care Award
• Social, Community, Home Care and Disability Services (SCHADS) Award for employees working in Home Care (Aged Care)
• Nurses Award, again targeting workers delivering aged care

The FWC website gives more detail, with key changes highlighted as follows:

• Pay rate increases for eligible employees
• New definitions and classifications in the Aged Care Award
• New streams for home care employees involved in aged care in the SCHADS Award
• Changes to coverage for nursing assistants working in aged care

2. 15% increase for early childhood sector staff

Thousands of early childhood education and care workers are set for a 15% wage increase over two years. This will be delivered through a ‘worker retention payment’, starting with a 10% increase (from Dec. 2024) and a further 5% (from Dec. 2025).

Payments won’t be automatic – eligible childcare providers will need to opt-in, by applying through a grant agreement. To receive the funding, providers must agree not to increase their fees by more than 4.4%, between 8 August 2024 and 7 August 2025.

See the Department of Education website to find out more. For clients making an application, please reach out to Purpose for any financial information or support needed.