The aged care workers demand for higher remuneration has been recognised by the Australian government.

In a statement to the Fair Work Commission, the Albanese Administration pledged to pay for any possible salary raise for aged care staff (FWC).

The independent wages umpire said that the present award rates do not accurately reflect the value and expertise of the industry and demanded a 25% pay rise for 200,000 workers.

This initiative is a result of the Covid-19 pandemic's increased pressure on the industry as well as the suggestions given by the Royal Commission into Aged Care Quality and Safety the year before.

There is no denying that their job is now devalued, according to Tony Burke, minister of employment and workplace development. That needs to change.

According to some, the salaries paid in the aged care industry are insufficient to entice individuals to work there, which results in a shortage of workers that lowers the quality of care provided to Australia's senior population.

According to modelling done by the Health Department, the industry has to grow by 6.6% annually for the next five years to keep up with demand.

A 25% pay hike might result in a five to ten per cent growth in labour, according to different Treasury Department modelling.

"As our age increases, we won't be able to recruit and retain enough individuals to provide for our family members unless we don't start paying aged care workers appropriately," Wells said in a statement issued by ministers Tony Burke and Mark Butler.

Low pay and unfavourable working circumstances in care industries like certificate IV in aged care, where the most of employees are women, are among the key contributors to the gender pay gap.

In order to ensure that men and women are compensated fairly, salaries in the elderly care industry must be raised.



Depending on incomes at the time the application was submitted, this modification might result in an increase in the minimum wage for aged care employees of at least $5 per hour, bringing the rate from $23.09 to $28.86 per hour.

According to the union's plan, this may result in a weekly salary rise for stage one aged care workers from a little over $800 to greater than $1,000.

However, the FWC has been considering arguments on this issue since 2020, and it is scheduled to hear them this month.


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