Phase 3 of the Fair Work Commission Work Value Case - Aged Care Industry will be rolled out commencing 1 January 2025.  Phase 3 follows on from the already completed Phase 1 and 2 of increases to wages.  Phase three applies to direct care employees, namely Personal Care Workers, Home Care Workers, Registered Nurses, Enrolled Nurses, Assistants in Nursing in Nurse Practitioners in the aged care sector in the SCHADS, Nurses and Aged Care Awards.  Phase 3 will apply increases varying between 2.3 and 13.5% depending on the classification. The Application has been spilt into two parts applying from 1^st January and 1^st October 2025 (not all classifications will have increases on both dates, this will depend on the degree of % applied).

This means that applicable classifications will be subjected to potentially three wages increase in 2025, 1^st January and 1^st October 2025 together with the National Wage Case Increase that usually applies from 1^st July each year.  A triple whammy unfortunately.

As promised we have confirmed with the Fair Work Ombudsman that the wage increases will be applied from the first full pay period commencing on or after 1^st January and 1^st October 2025.

The applicable pay scales from 1^st January 2025 have already been released and can be found here.

For those who want to read more, the Summary of Decision and Determination from the Fair Work Commission are below:

Determination:  FWO - Award Viewer - PR779153

Summary of Decision:  Summary of decision: Work value case – Aged care industry – Stage 3 [2024] FWCFB 150

Review of Classifications:

Now is a really good time to review your employees to make sure that you have your employees classified correctly to ensure that the right pay rate is applied.  In the attached Determination, there is a translation table of classifications to assist with ensuring that the right classification is applied.  We understand that this is not an easy task, Human Resource Dynamics is here to help should you need it.

Top Tips:

• Review your classifications and apply rates to correct classifications

• Communicate with your employees, particularly if the increase is being absorbed into any overaward payments you are already applying (keep in mind that you need to make sure that your above award rate is high enough to include the increase in wages)

• If you are playing flat rates - get help to ensure your rates are compliant

• Ensure your payroll systems are updated with the new rates and casual loadings, penalties and overtime rates are being applied correctly

• Double check that any allowances that are expressed as a % of a base rate are calculated correctly (Phase 3 does not increase allowances that are expressed as a $ amount but may impact allowances that are expressed as a % of a base rate)

• Get help if needed

With multiple wage increases coming in 2025, now is the time to review, adjust, and ensure your business is ready—because compliance today means fewer headaches tomorrow!