If you are a PCW working in residential aged care, you can expect some changes to your pay and classification at the start of 2025.  

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Background

PCWs, now referred to as an ‘Aged care employee- direct care’, (direct care worker) under the Aged Care Award will receive an increase to minimum award rates effective from 1 January 2025. In addition, the classification structure for direct care workers will change to a new structure.

Here are some questions and answers to help you understand the changes.  

Why are these changes occurring? 

In 2021 the ANMF commenced a work value case at the Fair Work Commission (FWC) to improve award wages for nurses and personal care workers in the aged care sector. The ANMF case, together with an application made by the HSU sought increased minimum wages and an improved classification structure for personal care workers (PCWs) covered by the Aged Care Award 2010.  

Our case has been successful. You may recall in July 2023 award rates for PCWs increased by 15%.  

In March 2024, the FWC made its final wage rates decision for  PCWs, together with all other aged care employees, except for nurses.  

This is great news for aged care workers. For example, a PCW with a Certificate III will receive a total 23% increase in minimum award rates as a result of the work value case.  

Changes from 1 January 2025

The FWC determined direct care workers will receive further increases after the initial 15% on 1 January 2025 and any final increase on 1 October 2025.  

Table C below shows you the current award minimum hourly rate up to 31 December 2024 and what your new minimum hourly rate will be from 1 January 2025. Table C also shows you how you will translate from the current Aged Care Award classification structure to the new one.  

What is changing in the Aged Care Employee- direct care structure?

Currently there are seven levels in the classification structure and each level has a generic description of the work performed at that level.

The new structure has 6 levels, with descriptors that indicate how skills and experience increase over time.

The new levels are:

Level 1- Introductory

Level 2- Direct Carer

Level 3- Qualified

Level 4- Senior

Level 5 – Specialist

Level 6- Team Leader.

Progression through levels

• Progression from level 1 to level 2 occurs after 3 months of experience at level 1.
• A direct care employee with a Certificate III in Individual Support (Ageing) or equivalent, will be appointed to Level 3.
• Progression from Level 3 to Level 4- Senior occurs after 4 years of experience at Level 3. Note: Only experience at Level 3 gained after 1 January 2025 counts towards progression to Level 4, meaning under the Aged Care Award, the Senior classification is not available until 1 January 2029.
• Appointment to Level 5 – Specialist holds a Certificate IV in Ageing Support or equivalent and the qualification is a requirement for the performance of the job.
• Appointment to Level 6- Team Leader holds a Certificate IV in Ageing Support or equivalent and it is a requirement of the job to supervise or train other direct care employees.

Will my wages change? 

Table C shows current award rates and what they will be from 1 January 2025. These rates are the minimum safety net amount for each classification. If you are paid at award rates, you will receive the new minimum amount from  your first pay period in January 2025.

It is important to note that a direct care employee currently classified at Level 3 will translate to Level 2- Direct Carer and retain the current higher minimum rate of $30.88.

 If you earn more than the minimum you should also receive an increase in salary as the Commonwealth Government has funded all providers to pass on a wage increase to all aged care employees. The increase should be equivalent to the difference between the current award rate and the new rate.  

For example, the current award rate for a Level 4 direct care employee is $31.24. From 1 January 2025, this classification translates to Level 3 and a new rate of $32.14, so you should receive an increase of receive an hourly rate increase of $ 0.90.  

It will be important to check your enterprise agreement if you have one, or any information given to you by your employer about your pay rate. Contact your Branch if you have any questions or concerns about your pay rate.  

Please see Table B below for more details about the Aged Care Employee-Direct Care structure. 

If you have any questions about your role, classification and pay rates please contact your Branch here