A fourth aged care pay rise has taken effect, delivering another boost to the sector. Around 400,000 aged care workers across Australia are set to benefit, with the Federal Government committing $17 billion to fund the increases.

This latest rise builds on a series of aged care wage increases introduced over the past two years. It follows the landmark 15 per cent increase in July 2023 and subsequent phased increases of between 3 and 13 per cent. Together, these changes mark a significant shift in how aged care work is valued and recognised. For many workers, the improvements provide greater financial security. They also highlight the essential role aged care plays in supporting an ageing population.

The wage rises come after the Fair Work Commission handed down an award increase for aged care workers. This followed years of campaigning from unions, industry groups and employees who argued wages had not kept pace with job demands.

So, what does this mean for aged care workers and the industry in general?

What does this mean for aged care workers?

Under the changes:

• Level two registered nurses will receive an extra $60.20 a week
• Enrolled nurses will receive an extra $62.20 a week
• Personal care workers will receive an extra $39.50 a week

Registered and enrolled nurses are also set to receive another pay rise in August 2026. For those on the front line, these increases provide much-needed financial relief. They also deliver a morale boost.

What impact the latest aged care pay rise have?

Helping address the gender pay gap

Traditionally, like many caring-based roles, aged care has been a female-dominated industry. Unfortunately, caring professions are often undervalued and therefore underpaid. The government hopes the pay increase will help close the gender pay gap and ensure wages better reflect the skills, training and emotional labour required.

According to Social Services Minister Amanda Risworth, addressing the gender pay gap is a major priority for the government.

“Reducing the gender pay gap was one of the key reasons the government funded the 15 per cent pay increase for aged care carers,” she said.

Incentivising people to take up a career in aged care

By recognising and rewarding the incredible contribution aged care workers make to society, it is hoped more people will be encouraged to take up a career in the sector. Australia’s aging population is creating growing demand for skilled carers. Therefore, these wage rises are seen as a critical step in making the industry more attractive.

Federal Treasurer Jim Chalmers hopes higher wages will make aged care a more desirable career path for young people.

“This investment recognises the big contribution that aged care workers make to our economy and community and will help to create a bigger incentive for young Australians looking for a rewarding career, to pick aged care in the future,” Dr Chalmers said.

The government has cited recruitment and retention as a key reason why they have made funding aged care wage rises. Higher wages, combined with professional development opportunities, could help reduce staff shortages. They may also improve the quality of care delivered.

With wages continuing to rise and the sector in need of passionate workers, now is a great time to consider a role in aged care. If you’re ready to take the next step, Aged Care Resumes can help. We offer a range of services including  professional resume writing, cover letters and LinkedIn profile writing to give you the best chance of success in this growing industry. Contact us today to find out how we can help you build a strong career in aged care.

Article References

Hellocare (1 October 2025) ‘Aged care workers receive fourth pay rise from today‘ Hellocare, accessed 2 October 2025.

Henry, T (1 October 2025) ‘Aged care workers given fourth pay rise after FWC finding‘, News.com.au, accessed 2 October 2025.

Vidler, A (1 October 2025) ‘Aged care workers receive another pay boost’, Nine News, accessed 2 October 2025.