The Albanese Labor Government is delivering its fourth increase to aged care wages, in what it says is the largest investment of its kind to lift pay in the sector, support workers with cost-of-living pressures and close the gender pay gap.
From 1st October 2025, a registered nurse on the most common award level will receive an extra $60.20 per week, while enrolled nurses will see their wages rise by $62.40 per week. Personal care workers are also included in the increase, taking home an additional $39.50 per week. With previous wage rises factored in, some workers will be more than $28,000 better off per year under Labor. A further increase for nurses will follow on 1 August next year.
Treasurer Jim Chalmers said the rise recognises both the contribution of the workforce and the need to attract future generations into the sector. “Aged care workers do an incredible job and they deserve every dollar of this pay rise that we’re delivering,” he said.
“This investment recognises the big contribution that aged care workers make to our economy and community and will help to create a bigger incentive for young Australians looking for a rewarding career, to pick aged care in the future.”
The Government has committed $17.7 billion to back the Fair Work Commission’s case to raise award wages for 400,000 aged care workers. Chalmers said the move reflects broader progress on wages and the economy:
“Under Labor, real wages are up, inflation is down, unemployment is low, living standards are growing and people are earning more and keeping more of what they earn.”
Employment and Workplace Relations Minister Amanda Rishworth emphasised the reform’s role in gender equality.
“The Government put gender equality at the heart of the Fair Work Act, and we now see the Gender Pay Gap is at its equal lowest level on record, and Australian women are now earning more than $250 a week more on average, than they were before we came to government,” she said.
She added that reducing inequality was central to Labor’s funding of a 15 per cent pay increase for aged care carers. “Reducing the gender pay gap was one of the key reasons the government funded the 15 per cent pay increase for aged care carers.”
“The Fair Work Commission recognised the historical gender-based undervaluation of work in aged care, leading to significant wage increases that our government funded.”
Minister for Aged Care and Seniors Sam Rae said the increases show the government’s commitment to restoring dignity and recognition for a workforce long undervalued. “Aged care workers deserve better pay and more recognition for the meaningful work they do.”
“We’re proud to be funding the largest ever increase to award wages in a work value case for people who care for our loved ones with such compassion.”
He contrasted the policy with previous years, saying: “After a decade of decay under the Coalition, aged care workers were systematically underpaid and undervalued. That ended with the Albanese Labor Government – and this latest pay rise builds on our work to close the gender pay gap and get wages moving.”
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