Working in the aged care industry
Upcoming award changes: Aged Care Work Value Case
The Aged Care Work Value Case is a series of decisions of the Fair Work Commission that change minimum wages and conditions for employees in the aged care industry.
The changes take effect from 1 January 2025.
For more information, go to Aged Care – Work Value Case: Changes to awards.
Read about entitlements under the Aged Care Award when working in the aged care industry.
On this page:
- Aged care industry
- Where to find employee entitlements
- Classifying employees
- Minimum rates
- Shiftwork
- Overtime
- Allowances
- Tools and resources
- Related information
Aged care industry
The aged care industry covers the provision of accommodation and care for older persons in an aged care facility.
These can include:
- nursing homes
- hostels
- independent living units
- serviced apartments
- retirement villages
- or any other residential accommodation facility.
Tip: Another award may apply
If providing care services to an older person in their home or other residential setting, the Social, Community, Home Care and Disability Services (SCHADS) Award may apply.
Find out more at Working in the social, community, home care and disability services.
Where to find employee entitlements
Minimum entitlements can come from:
- the National Employment Standards
- a registered agreement
- an award.
National Employment Standards
The National Employment Standards (NES) are minimum employment entitlements that must be provided to all employees. For example, maximum weekly hours and leave. Find out more at National Employment Standards.
Registered agreements
A registered agreement is a legal document that sets out minimum employment terms and conditions. It is an agreement between employers and employees that covers their workplace only.
The agreement must meet the minimum obligations contained in the equivalent industry award before it is approved by the Fair Work Commission (the Commission).
The Commission is the national workplace relations tribunal and registered organisations tribunal.
Registered agreements are common in aged care facilities that are managed or owned by a charitable or religious institution.
To check if you’re covered by a registered agreement, search using the Commission's agreement search: Find an enterprise agreement.
Awards
An award is a legal document that covers a particular industry or sector. It can also cover employees based on their occupation.
Awards outline the minimum conditions and entitlements for employees working in that industry, including:
- minimum rates of pay
- penalty rates
- allowances
- arrangement of ordinary hours.
The most common award covering employees and employers in the aged care industry is the Aged Care Award. This page contains pay and entitlement information under the Aged Care Award.
If you are unsure if this award applies to you, use our Find my award tool. For a list of awards, go to List of awards.
Tip: Employment contracts
An employment contract can also have additional terms about employment rights and obligations. These terms can’t be less than an employee's minimum entitlements such as the National Employment Standards.
More information can be found at Employment contracts.
Classifying employees
The Aged Care Award classifies employees under 2 streams:
- employees involved in providing direct care
- employees performing support functions.
Examples of employees performing support functions include:
- cleaners
- gardeners
- food services employees
- clerical employees
- drivers.
An employee’s classification depends on the:
- type of duties they perform
- employee's level of responsibility
- level of experience or qualifications the employee needs to work at that level.
The full list of classifications can be found in Schedule B of the award.
Minimum rates
An employee’s minimum wage is set by their award classification.
To calculate pay rates and other entitlements such as allowances, overtime and penalty rates, use our Pay and Conditions Tool.
There are also pay guides available that list all pay rates under an award. Download the Aged Care Award pay guide.
Example: Employee calculates an allowance and penalty rate
Philomena is a personal care worker in an aged care facility. She's an aged care employee grade 3 under the award.
Philomena will be working on a public holiday for the first time and wants to know her pay rate. She finds the Pay and Conditions Tool on fairwork.gov.au.
The tool calculates the hourly rate and industry allowances Philomena should be paid. It also calculates other allowances and penalties that she selected including their public holiday pay rate.
For general information about pay and entitlements, go to Pay and wages.
Higher duties
An employee required to perform duties that would require a higher pay rate is entitled to be paid the higher rate for the:
- actual time worked if that is 2 hours or less
- entire day or shift worked if the time worked is more than 2 hours.
Example: Higher duties owed on different shifts
Jay is a personal care worker in a large nursing home. Jay works as a direct care employee level 5.
When Jay’s supervisor takes their meal break, they leave Jay in charge for that hour. Because the time Jay is required to perform higher duties is less than 2 hours, they are paid the higher rate for the hour they perform the supervisor role.
The next day, Jay’s supervisor goes home sick and asks Jay to fill in for them for 4 hours until the next shift supervisor starts. Because Jay is acting supervisor for more than 2 hours, Jay is paid the higher rate for their entire shift.
Shiftwork
Most aged care facilities require 24-hour care to be provided to their residents.
Under the Aged Care Award, shiftworkers are employees who are required to work hours outside the ordinary hours of a day worker. These hours are between 6 pm and 6 am Monday to Friday.
They may be entitled to receive an additional shift allowance based on the start and finish time of their shift. Allowances are paid for the entire shift.
| Shift start and finish time | Shift allowance (% of the hourly rate) |
|---|---|
| Afternoon shift starting between 10 am and 1 pm | 10% |
| Afternoon shift starting between 1 pm and 4 pm | 12.5% |
| Night shift starting between 4 pm and 4 am | 15% |
| Night shift starting between 4 am and 6 am | 10% |
Part-time and casual employees are only entitled to shift allowances if their shift:
- starts before 6 am, or
- finishes after 6 pm.
Overtime
Full-time employees covered by the Aged Care Award get overtime pay when they work more than:
- rostered ordinary hours on any day
- 38 hours per week (or an average of more than 152 hours in 4 weeks)
Overtime may apply if an employee works more than the maximum number of hours in a single shift, either:
- 8 hours per day, or
- 10 hours on a night shift.
Overtime for part-time and casual employees may apply when they work:
- more than 38 hours per week or 76 hours per fortnight
- more than 10 hours in a shift.
All time worked over a part-time employee’s rostered hours on any one day is considered overtime, unless the employer and employee have made an agreement to vary their hours of work under clause 10.3(c) of the award.
Allowances
Depending on the type of work performed and the tools required, employees may be entitled to certain allowances in addition to their normal pay. This can include:
Tip: Use our Pay and Conditions Tool
Calculate your allowances using our free Pay and Conditions Tool.
The tool can also calculate award penalty rates, shiftwork entitlements and leave balances.
Clothing and equipment
Employees that are required to wear a uniform at the direction of their employer should be supplied with an adequate number of uniforms.
Any uniforms supplied must also be laundered and returned to the employee by the employer. A laundry allowance will apply if the employer doesn’t provide this service.
If the employer and employee agree for the employee to provide their own uniform, the employer will be required to pay the employee a uniform allowance.
Nauseous work allowance
An employee will be entitled to a nauseous work allowance if they are required to:
- handle linen of a nauseous nature other than linen sealed in airtight containers
- perform work which is of an unusually dirty or offensive nature.
Meal allowance
Employees required to work overtime may be entitled to a meal allowance when:
- required to work more than one hour beyond their normal finishing time
- overtime exceeds one hour for shiftworkers.
When overtime exceeds 4 hours, a second meal allowance must be paid.
A meal allowance may be provided in the form of:
- an adequate meal where there are cooking and dining facilities on-site, or
- payment of money.
The meal allowance isn’t payable if the employee could reasonably return home for a meal within the meal break time.
Tools and resources