Minimum pay rates to increase for nurses working in aged care

The Fair Work Commission (FWC) has made a final decision regarding wages for nurses working in the aged care sector under the Nurses Award. This forms part of its Work Value Case – Nurses and midwives, where the FWC determined that nurses working in aged care were no longer adequately compensated for the value of the work they perform, and therefore an increase to the minimum wage set out in the award was justified. The FWC have also determined to simplify the classification structure for nurses working in aged care. This decision follows other recent changes for Assistants in Nursing (AINs) and other support workers working in aged care, which we’ve explained in our recent changes to the SCHADS Award article.

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When will the increase to pay rates come into effect?

Pay rates will be increased in a three step process, with the first pay increase taking effect from the first full pay period on or after 1 March 2025. Further increases will be introduced on 1 October 2025 and 1 August 2026.  You can see the 1 March 2025 pay rates in the FWC’s final determination.

What are the changes to the classification structure?

From 1 March 2025, the classification structure for Registered Nurses working in aged care will also be simplified by removing:

• annual progression through pay points for levels 1, 2 and 3
• separate grades within levels for levels 4 and 5

Instead, going forward, pay rates will increase for level 1 and level 2 employees based on experience. 

For example, one pay rate will apply for an employee in their first year of employment classified at level 1, then the rate will increase after they have been in that classification in excess of 1 year, etc.  

In addition, all newly qualified Registered Nurses working in aged care will start at the same pay level, whereas previously, these employees started at different minimum pay rates based on their qualifications. Pay points will also be removed for Enrolled Nurses working in aged care who will be paid a single higher minimum pay rate. Read the full table of the new classifications in the FWC’s final determination.

When does the new classification structure start?

The changes will apply for newly employed nurses from 1 March 2025. For existing nurses (employed prior to this date) there is a “translation arrangement” set out in a new Schedule F to the Award. This sets out which classifications the existing nurses should move to on 1 March 2025.  The translation arrangements in the Award also state that an employee’s previous pay rate will be maintained if they were being paid a higher minimum pay rate on 28 February 2025, which would otherwise reduce on 1 March 2025. You can read the full table of translations in the final determination. The Fair Work Ombudsman gives the following example of how the new classification structure works for existing employees:

Tim and Sarah are registered nurses working in aged care under the Nurses Award.

Prior to the changes, Tim was a Registered nurse level 2 at pay point 3. Sarah was a Registered nurse level 4 at grade 3.

After the changes, Tim and Sarah check their new classifications.

Tim is still a Registered Nurse level 2. Because he was previously at pay point 3, he will now be at the ‘First 3 years of employment classified at this level’ increment.

Sarah is still a Registered Nurse level 4, with no pay points, grades or increments applying to her level.

Because Sarah was a Registered Nurse level 4 at grade 3 on 28 February 2025, her previous minimum pay rate was higher than the new minimum pay rate. This means Sarah continues to be paid at the higher rate.

Example source: Fair Work Ombudsman. 

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