Aged care workers across Australia receive a pay rise from 1 July 2026, following the Fair Work Commission’s annual wage decision. For a workforce that’s been at the centre of concerns about care quality and staffing shortages, it’s a meaningful, if partial, step.
What’s Changing
The Fair Work Commission has raised modern award wages by 4.75 percent from 1 July 2026. The roughly 100,000 lowest-paid award workers will receive a higher increase of 6 percent, and the National Minimum Wage rises to $26.44 per hour, up from $24.95, an increase of just under 6 percent.
While the decision affects workers across many industries, aged care is one of the sectors where award-reliant employment is most common. Personal care workers, nursing assistants, and home care support workers are frequently employed under the Aged Care Award or the Social, Community, Home Care and Disability Services (SCHADS) Award, meaning many will feel this increase directly.
How It Fits With Other Wage Rises
This 1 July increase doesn’t stand alone. A separate, final work value increase for aged care nurses is due on 1 August 2026, flowing from the landmark Aged Care Work Value Case that recognised aged care work had been historically undervalued.
Importantly, not all workers receive both increases. Which one applies depends on a worker’s specific award, classification, and employer. The Fair Work Ombudsman’s Pay Calculator is the most reliable way to check how the changes affect a particular role.
Why Pay Matters for Care Quality
The link between wages and care quality is direct and well established. Pay affects whether aged care workers stay in their roles, and high turnover, short staffing, and heavy reliance on agency workers are among the most common concerns families raise about the quality of both residential and home care.
When workers stay, older Australians receive more consistent care from people who know them. For people living with dementia in particular, that familiarity isn’t just nice to have, it’s part of the care itself, as continuity and recognition can significantly affect wellbeing.
The Sector’s View
The increase has been welcomed, if cautiously. The Australian Nursing and Midwifery Federation, the largest union representing nurses and midwives, welcomed the decision while noting it fell short of what the broader union movement had sought, saying it would provide some relief to members dealing with rising living costs.
That mixed reaction reflects the bigger reality: while wage increases are a genuine and necessary step toward stabilising the aged care workforce, sector leaders consistently stress that pay alone won’t solve the staffing crisis. Investment in training, career pathways, conditions, and workforce planning all need to happen alongside it for the system to deliver the care older Australians deserve.
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