Aged care pay increases move into their next stage from 1 October 2025, when Australian providers are required to apply updated award wage rates flowing from the Fair Work Commission’s Aged Care Work Value Case.
Aged Care Pay Increases 2025–2026:
Aged care pay increases move into their next stage from 1 October 2025, when Australian providers are required to apply updated award wage rates flowing from the Fair Work Commission’s Aged Care Work Value Case. Direct care employees receive their final tranche of increases, while nurses under the Nurses Award progress to the second of three staged rises running from March 2025 through to August 2026. For providers, these aged care pay increases touch far more than payslips — they flow through rostering, payroll compliance, and financial sustainability across residential and home care services.
What Are the Aged Care Pay Increases From 1 October 2025?
From 1 October 2025, direct care workers — assistants in nursing, personal care workers, and eligible home care staff — receive their final award wage tranche, an increase of roughly 3–13% depending on classification. At the same time, nurses covered by the Nurses Award move into the second of three staged increases. These aged care pay increases build on an earlier 15% work value uplift and are backed by more than $17.7 billion in Australian Government funding supporting over 400,000 workers.
Key Award Changes From 1 October 2025
Direct Care Employees: Final Tranche Applied
- Applies to assistants in nursing, personal care workers, and home care staff
- Approximate range of 3% to 13%, depending on classification level
Because the exact percentage depends on classification and pay point, providers should not apply a blanket adjustment — each employee’s level needs checking against the updated pay guide before rates change in payroll.
Nurses Award: Second Tranche of Staged Increases
- Second tranche of a staged increase that began in March 2025
- Overall adjustments delivered across three implementation points
- Target range of 4% to 25% once fully phased in by March 2025, October 2025, and August 2026
Registered and enrolled nurses will see a further, largely equal instalment on 1 August 2026, completing this phase of the Work Value Case for nursing classifications.
The Cumulative Impact of These Aged Care Pay Increases
These increases sit on top of the earlier 15% work value outcome, and the cumulative effect is a significant budget impact across residential and home care services. According to the Department of Health, Disability and Ageing, the Australian Government has committed more than $17.7 billion to support the Fair Work Commission’s Aged Care Work Value Case decisions, covering wage increases for over 400,000 workers — see Better and fairer wages for aged care workers for current funding detail.
What These Aged Care Pay Increases Mean for Providers
- Apply updated award rates correctly across all classifications and locations
- Reforecast labour budgets using current rates and realistic utilisation
- Validate penalty periods, overtime, and allowances within rosters before shifts run
- Regenerate payroll export files and reconcile variances against finance forecasts
- Document compliance evidence for audits and board reporting
How VisiCase Keeps You Compliant and Efficient
Automatic Pay Guide Updates
Relevant award pay guides are maintained in the background, so new rates flow to costing and payroll exports without manual rekeying.
Award-Aware Rostering
Rosters align with classification rules, penalties, and entitlements automatically. Built-in checks reduce underpayment and misclassification risk — see how award-aware rostering protects providers through changes like this one.
Costed Roster Reports
Real-time roster costing shows the true impact of new rates before approval, so leaders can scenario-test coverage and skill mix.
Payroll File Integration
Payroll exports reflect current award rates and allowances — fewer manual overrides, fewer costly corrections.
Aged Care Pay Increases Timeline at a Glance
| Date | What Changes |
|---|---|
| March 2025 | Nurses Award initial staged increase commences |
| October 2025 | Direct care final tranche applies; Nurses Award second tranche applies |
| August 2026 | Nurses Award third tranche completes the staged adjustments |
Practical Checklist for Your Team
- Confirm classifications for every employee and verify level mapping
- Reprice standard shifts and penalty windows inside roster templates
- Lock in governance steps for pre-pay-run checks and sign-off
- Update budget assumptions for care minutes and service delivery targets
- Communicate clearly with staff about effective dates and pay slip changes
Next Steps
With the final tranche landing in October 2025 and the last nursing instalment due August 2026, providers need systems that keep pace automatically. Book a VisiCase demo or visit visicase.com to learn more.
Frequently Asked Questions
Yaha wahi 6 FAQs hain, citation tags hataye hue: 1. Will there be a pay rise for aged care workers in 2026? Ye
Yes. Aged care pay rises in 2026 are the cumulative result of the Aged Care Work Value Case plus annual award wage rises. A 4.75% Annual Wage Review increase applied to all Aged Care Award rates from 1 July 2026, and the third and final nurse increase under the Work Value Case took effect on 1 August 2026. Visicase helps providers keep payroll and invoicing systems aligned with these award updates as they roll out.
When will the aged care pay rise be paid in Australia?
Aged care wage increases have rolled out in stages: 1 January 2025 and 1 October 2025 for many direct care workers under Stage 3, and 1 March 2025, 1 October 2025, and 1 August 2026 for registered and enrolled nurses. A further 4.75% Annual Wage Review increase applied across the board from 1 July 2026. As of the current pay cycle, all scheduled Work Value Case increases have now been paid.
What is the expected pay rise amount for aged care workers in 2026?
From 1 July 2026, a Certificate III qualified personal care worker (direct care Level 2) earns a base rate of $34.42 per hour, or $43.03 per hour if casual, with Sunday shifts around $60.24/hr and public holidays around $86.05/hr. Exact rates vary by classification and role, so providers should check current Aged Care Award rates for their specific worker categories.
Who is getting the 4.75% pay rise?
The 4.75% increase from 1 July 2026 applies broadly across all Aged Care Award rates as part of the Annual Wage Review, on top of the separate Work Value Case increases already delivered to direct care workers and aged care nurses. This means most award-covered aged care staff — not just those directly involved in the Work Value Case — received this increase.
What is Stage 3 of the Aged Care Work Value Case?
Stage 3 was the final decision in the Aged Care Work Value Case, delivering a total 23% wage increase for care workers (inclusive of the earlier 15% Stage 2 increase), phased between 2023 and October 2025. Around 400,000 aged care workers benefited from these increases across the case.
What was the Aged Care Work Value Case abou
In 2021, the ANMF and HSU filed applications with the Fair Work Commission arguing that aged care nurses and personal care workers had been systematically undervalued, particularly because the workforce is predominantly female — a finding the Royal Commission into Aged Care Quality and Safety had also made. The Fair Work Commission’s decisions under this case are now complete, and the government has committed billions in funding to support providers passing these increases on to staff. Visicase can help aged care and NDIS providers manage the invoicing and compliance side of these award changes.
