Aged care is one of Australia’s most significant industries, employing a wide variety of employees and people. In recent years, the aged care sector has faced intense scrutiny and criticism due to lack of effective care in homes and underpaid employees. It’s not to say that the businesses are at fault, it’s the complex award systems with their variations and layers that can confuse employers and small business owners.
Peninsula has years of experience supporting small business owners in the aged care sector. That’s why we put together this guide to provide a comprehensive overview of the aged care award pay rates, including specific rates for different certification levels, night shift allowances, and regional variations in Queensland (QLD) and New South Wales (NSW). It also explains the different employee levels within aged care, ensuring a thorough understanding of compensation standards. If you need any support or assistance in understanding pay rates, feel free to contact us on 1300 651 415.
##Coverage
The Aged Care Award sets the standards for wages and conditions for workers in aged care facilities and services. This award is crucial in ensuring fair compensation and work conditions for those dedicated to caring for the elderly.
The award defines the aged care industry as the provision of accommodation and care services for aged persons in a:
Hostel
Nursing home
Aged care independent living unit
Aged care service apartment
Garden settlement
Retirement village or
Any other residential accommodation facility
The coverage includes personal care workers, as well as non-medical staff, like cleaners, drivers, cooks, receptionist, and other employees at the facility.
## 2024 Updates in Aged Care Award Rates
The 2024 update reflects changes in the economic conditions, cost of living, and industry-specific needs. These updates are critical to maintaining fair and equitable pay standards in the aged care sector. Known as the aged care reforms, these changes include things such as:
Wage rise for aged care workers
Regulatory model of how the aged care sector will operate under a new Aged Care Act
Strengthened aged care quality standards
These updates are layered and complex and impact the aged care sector. If you need to understand what is changing and its effect on your business, call our free initial advice line on 1300 651 415 today.
##Minimum Wage 2024
Each year, the Fair Work Commission reviews both the National Minimum Wage and the minimum pay rates under awards (Annual wage review). Most changes begin on the first full pay period on or after 1 July.
The National Minimum Wage applies to employees not covered by an award or registered agreement. This is the minimum pay rate provided by the Fair Work Act 2009 and is reviewed each year.
As of 1 July 2024, the National Minimum Wage is $24.10 per hour or $915.90 per week.
Some awards contain introductory pay rates for new employees in their industry. These rates generally apply for a limited time until an employee progresses to their next level. These introductory rates may be less than the National Minimum Wage.
##Key Components of the Aged Care Award Pay Rates
Aged Care Pay Rates Overview:
The award outlines the base pay rates for various roles within aged care, from entry-level positions to more experienced and qualified roles.
Certification-Level Specific Rates:
Cert III in Aged Care Pay Rates: The award specifies pay rates for workers holding a Certificate III in Aged Care, generally considered the entry-level qualification for personal care workers.
Cert IV in Aged Care Pay Rates: Higher rates apply for workers with a Certificate IV, reflecting their advanced skills and responsibilities.
Night Shift Pay Rates in Aged Care:
Additional allowances are provided for night shifts, compensating workers for the unsocial hours and additional demands of night-time care.
Understanding Employee Levels 4 and 5:
Level 4: Typically involves supervisory roles or workers with specialized skills.
Level 5: Represents more senior positions, often with managerial responsibilities.
Regional Variations in Pay Rates:
The award may include variations in pay rates for different states, such as Queensland (QLD) and New South Wales (NSW), to account for regional economic differences.
Aged Care Employee Levels Explained:
The award categorizes employees into levels based on their qualifications, experience, and the complexity of their roles. Understanding these levels is crucial for both employers and employees to ensure correct wage allocation.
##Aged Care Industry vs SCHADS
While there is some overlap between the aged care sector and the social, community, home care, and disability services (SCHADS) sector, there are key differences between the Aged Care and SCHADs awards. If you determine the Aged Care award covers your business, the SCHADS award will not apply. SCHADs cover employers in Australia in the:
Crisis assistance and supported housing sector
Social and community services sector
Home care sector
Family day care schemes sector
The key differences between coverage in the Aged Care Award and SCHADS Award is whether your employees perform a provision of care in a private residential setting or in a professional setting such as a nursing home or retirement village.
If your business falls under the SCHADS Award, then refer to our detailed SCHADS Award Guide for more information.
##Why is it important to know the award pay rates?
As a business owner, it is your legal responsibility to understand the business award that covers your employees, as the award determines all entitlements. The award system in Australia is famously complicated with 150+ modern awards, each containing multiple roles. This can make classifying employees or paying them accurately very difficult. Underpayment of wages and allowances are reported to the Fair Work Ombudsman, and you will have to back pay the employee entitlements and financial penalties will apply.
Nowadays software or tools are available for calculating entitlements or pay rates. However, as your staff count increases, this can become time-consuming and challenging. That’s why you need a personal touch, someone who can understand your challenges and talk you through the system and ensure you are paying your employees correctly. Peninsula has a team of advisors working for your business and can offer tailored advice that will help answer your questions. Call our free initial advice line today on 1300 651 415.
###Need Assistance with Aged Care Award Rates?
For those seeking guidance on the aged care award rates or needing help in understanding the complexities of the award, our experts are here to assist. Whether you're an aged care facility manager, a care worker, or someone considering a career in aged care, we can provide you with the advice and solutions you need. Contact us today for expert assistance to ensure you're well-prepared for the 2024 aged care award standards.
