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Budget 2023: 250,000 workers set for up to $10,000 pay rise

The federal budget included $11.3 billion to pay for the wage increase.

Composite image of Australian money and Treasurer Jim Chalmers. Budget concept.
Thousands of aged-care workers will get a 15 per cent pay rise as part of the budget. (Source: Getty/AAP)

Aged-care workers across Australia will receive a 15 per cent pay rise, as confirmed in the federal budget.

From July 1, 250,000 aged-care workers on award wages will receive the pay boost. This will amount to an increase of more than $10,000 a year for registered nurses, and more than $7,500 for enrolled nurses.

The pay rise will cover registered nurses, enrolled nurses, assistants in nursing, personal-care workers, head chefs and cooks, recreational-activities officers and home-care workers.

More budget news:

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“This pay rise will help retain, reward and recruit the hard‑working people who care for our loved ones as they grow old,” Treasurer Jim Chalmers said.

“And the message from our government to the aged-care workers of Australia is simple: you deserve every cent.”

The government has committed $11.3 billion to pay for the wage increase. It follows a recent decision by the Fair Work Commission to increase aged-care worker wages.

How much will aged-care workers get?

Aged-care workers will receive the following pay rises:

  • A registered nurse on a level 2.3 award wage will be paid an extra $196.08 a week (more than $10,000 a year)

  • An enrolled nurse on a level 2 award wage will be paid an extra $145.54 a week (more than $7,500 a year)

  • An assistant in nursing on a level 3 award wage will be paid an extra $136.68 a week (more than $7,100 a year)

  • A personal-care worker on a level 4 (aged-care award) or a home-care worker on a level 3.1 (SCHADS award) will be paid an extra $141.10 a week (more than $7,300 a year)

  • A recreational activity officer on a level 3 (aged-care award) will be paid an extra $139.54 a week (more than $7,200 a year)

  • A head chef/cook on a level 4 (aged-care award) will be paid an extra $141.12 a week (more than $7,300 a year)

  • A staff member with a Certificate III qualification moves from earning only $940 per week to $1,082.

When the wage rises take effect

Aged-care workers will receive the increased wages from July 1.

Aussies should “not go backwards”

The government has also again recommended the Fair Work Commission ensures “real wages of low-paid workers do not go backwards”.

‘Real wages’ is used to describe how much money we are making, compared to the rising cost of living.

For example, if you received a 5 per cent pay rise, but inflation went up 7 per cent, you would actually have taken a 2 per cent ‘real wage cut’.

In 2022, the Commission ruled to lift the minimum wage by $40 per week for millions of workers.

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