Aged care workers can expect a 15 per cent pay rise from July 1, announced ahead of next week's federal budget, promised to be the largest wage increase for workers in the sector.
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The pay increase will benefit 250,000 workers including registered and enrolled nurses, nursing assistants, personal care workers, head chefs and cooks, recreational activities officers and home care workers.
It means a registered nurse would take home an extra $10,000 a year, while a level 4 personal care worker will receive an extra $7300 a year.
But it also means the cost of some services will rise to cover the wages increase.
Tuesday's federal budget will include $11.3 billion over four years to fund the pay rise, with the federal government aiming to improve wages for women who make up 85 per cent of the aged care workforce.
The Albanese government has made the announcement in response to a report handed down from the Royal Commission into Aged Care which was calling to improve the pay packets of workers in the sector.
The report, which was handed down in March 2021, included 148 recommendations.
Treasurer Jim Chalmers said the investment would help to create an incentive to encourage more young people to work in aged care.
"Every worker deserves a fair day's pay for a fair day's work and that's what this will deliver for thousands in aged care across the country," Mr Chalmers said.
"For too long, those working in aged care have been asked to work harder for longer without enough reward but with this budget, that changes."
However, the cost of residential aged care will increase to $243 as from July 1 to cover staff wage increases, based on advice from the Independent Health and Aged Care Pricing Authority.
Each resident will also have to pay an extra $10.80 a day in a new hotelling supplement to cover the pay rise for head chefs and cooks.
Home care packages will also be increased to allow for the higher wages.
Minister for Aged Care Anika Wells said the "historic" $11.3b investment was a "deserved pay rise for a workforce undervalued for far too long".
"This wage decision will help more women and families to make ends meet, and ensure that quality aged care workers are less likely to contemplate leaving the sector because of pay concerns," Ms Wells said.
"We are ambitious for aged care and the Albanese government's funding will help restore dignity to older people, just as the Royal Commission asked us to."
