Aged Care Compact

Aged Care Compact

Details of the Aged Care Workforce Compact (‘the compact’) has been announced.

The Federal Government will provide funding to increase wages, conditions and career structures through a ‘Workplace Supplement’.

SUBJECT: Aged Care Compact

The Minister for Ageing Care Mark Butler on 6 March 2013 announced details of the Aged Care Workforce Compact (‘the Compact’). Under the Compact the Federal Government will provide funding of $1.2 billion to increase wages, conditions and career structures of enrolled nurses, registered nurses and personal care workers through a “Workplace Supplement”.

The compact will provide an additional 1 per cent pay rise over and above the minimum wage increases negotiated through bargaining enterprise agreements for workers employed in the Aged Care Industry.

To qualify for the “Workplace Supplement” Aged Care Providers must meet the conditions of the Compact which was developed in consultation with providers and unions. Providers will be required to pass the Supplement on as higher wages. Under the Compact, workers currently paid Award rates of pay can expect to see significant wage increases over a four year period, a Personal Care Worker would receive a pay rise of 18.7 per cent over a four year period with Enrolled Nurses receiving a 25 per cent increase and Registered Nurses receiving an extra 29.9 per cent increase over the same time period.

Mr Butler said workers employed by providers that meet the terms of the Compact will not only receive increased wages, but also enhanced training and education, and improved career pathways and development. He stated: “The key aim of the Workforce Compact will be to improve the capacity of the aged care sector to attract and retain staff through higher wages, improved career structures, enhancing training and education opportunities, improved career development and workforce planning and better work practices.”

The Workplace Supplement and Compact will be in operation from 1 July 2013. Aged Care Providers have until then to indicate whether they will participate in the Compact. The Federal Government also announced the development of an support group through the Aged Care Workforce Development Plan. The expert support group will focus on improving career structures, providing better training, education and work practices in Aged Care.

Further Updates on specific aspects of the changes will be provided when more detailed information becomes available.

Ted Davis

Executive Director

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