Aged Care Award (MA000018) 2025 Summary – Pay Rates, Penalties, Allowances & Entitlements

You can read also read our article that covers the 8 conditions commonly missed by employers in the Aged Care Award.

In addition, you can download a FREE copy of our Aged Care Award eBook that covers everything you need to know about the award, without the jargon which comes with a BONUS payroll processing checklist. 

Disclaimer:
Every effort has been made to ensure the information in this guide is accurate. However, it is intended as a general overview only and should not be relied on as legal or tax advice. For matters relating to your specific circumstances, seek independent professional advice.

The Aged Care Award applies to:

• Employers and employees in the aged care industry

• On-hire employees placed with aged care employers

• Group training employers providing apprentices or trainees to the industry

On-Hire and Group Training Arrangements

On-hire and group training arrangements must still comply with the pay, conditions, and entitlements outlined in the Aged Care Award.

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Employees under the Award can be engaged as:

• Full-time – average 38 hours per week

• Part-time – less than 38 hours per week, with agreed regular hours

• Casual – irregular hours, plus 25% casual loading

Full-Time Employee Definition under the Aged Care Award

Works an average of 38 ordinary hours per week.

Part-Time Employee Definition under the Aged Care Award

Works less than 38 hours per week or 76 hours over two weeks, with agreed, predictable hours and pro-rata entitlements.

Casual Employee Definition under the Aged Care Award

Works irregular hours, not classified as full-time or part-time, and receives an additional 25% casual loading instead of paid leave.

Casual Conversion Rights in the Aged Care Award

Regular casuals employed for at least 12 months may request conversion to part-time or full-time, subject to reasonable grounds for refusal.

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Notice periods for employees are the same as those for employers under the NES, except employees don’t need to give extra notice based on age.

Employee Notice Periods

• 1 year or less – 1 week

• 1–3 years – 2 weeks

• 3–5 years – 3 weeks

• 5+ years – 4 weeks

Job Search Entitlements

Employees given notice are entitled to paid time (up to one day) to look for other work.

An employee classified under the Aged Care Award must give their employer notice of termination as below:

Pay rates increase annually in line with Fair Work determinations.

From January 2025, the Award includes:

• A clearer definition of “direct care” employees

• A new classification structure for direct care workers

For more information on the industry pay conditions, please refer to the latest Pay Guide for the Aged Care

Please also refer to the minimum rates for different classifications here.

If you aren't sure about the classification structure, we break it down in our Aged Care Award eBook.

Note: The Aged Care Award now includes a clearer definition of 'direct care' employees and introduces a new classification structure for direct care workers as of January, 2025. To read more about these changes, access our comprehensive breakdown here.

• Clothing and equipment allowance: employees required to wear uniforms will be supplied with an adequate number of uniforms free of cost. However, where the employer does not supply the uniform, they will be required to pay the employee an allowance to cover the cost of the uniform and the laundry expenses.
• Leading hand allowance: a leading hand is an employee who is placed in charge of two or more employees. A leading hand is paid a weekly allowance according to how many employees they supervise: 
  
  • 2-5 employees; 
  • 6-10 employees; 
  • 11-15 employees; and 
  • 16 or more employees. 
• Meal allowance: if your employee is required to work more than 1 hour overtime, you must supply them with a meal or pay them an allowance. 
• Nauseous work allowance: if employees have to handle linen of a nauseous nature and/or work which is of an unusually dirty or offensive nature, they are entitled to an additional allowance. 
• Tool allowance: a tool allowance for the supply and maintenance of tools will be paid to chefs and cooks who are not provided with all the necessary tools by the employer.

• Vehicle allowance: employees required and authorised to use their own motor vehicle in the course of their duties will be paid an allowance. 
• When an employee is involved in travelling on duty, if the employer can’t provide the appropriate transport, all reasonably incurred expenses including fares, meals and accommodation must be reimbursed by the employer.

Search our database for all relevant allowances to your modern award.

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From 1 July 2025, the Superannuation Guarantee rate increases to 12% of an employee’s ordinary time earnings. This rate applies to all salary and wages paid on or after 1 July, even if some or all of the pay period occurred before that date.

From 1 July 2022, the $450 per month threshold for superannuation was removed. Employers must now pay the super guarantee (SG) for all eligible employees, regardless of how much they earn.

Learn more about Superannuation, including employer penalties, how to set up employee's super, who's eligible and much more with our free Superannuation Masterclass.

• in a period of 28 calendar days of not more than 20 work days in a roster cycle;
• in a period of 28 calendar days of not more than 19 work days in a roster cycle, with the twentieth day taken as an accrued paid day off ;or
• 8 hours on a day shift or 10 hours on a night shift.

Span of Hours

Ordinary hours for a day worker must be worked between 6.00 am and 6.00 pm Monday to Friday. 

However, shiftworkers will be regularly rostered to work their ordinary hours outside the ordinary hours of work of a day worker.

Rostered Days Off

An employee (other than a casual employee) must have: 

• 2 full rostered days off per week; 
• 4 full rostered days off in each fortnight; or 
• 8 full rostered days off in a 28-day cycle. 

Ideally, if it is practical for the employer, the rostered days off should be consecutive. 

Rest Breaks Between Rostered Work

An employee must be allowed a break of at least 10 hours between the end of one shift and the start of another. 

By mutual agreement, however, the 10-hour rest break may be reduced to 8 hours. 

Accumulation and Taking of Accrued Days Off

An accrued day off means that the employee has collected a paid day (or more than one day) that they can take off in a roster cycle. 

Accrued days off only applies to full-time employees.

Example: 

Larry is a full-time employee at a local aged care home. His typical working hours 38 hours a week, so on average he should be working 7.6 hours per day.

However, more often than not, Larry actually works around 8 hours per day. So, he accumulates an additional 0.4 hours (or 24 minutes) for each day.

Over a standard month, by working 19 days with an extra 24 minutes, Larry has accumulated 7.6 hours.

As per his agreement with his employer, Larry can take one accrued day off per month.

The employee can accumulate the days over more than one month, however, the accrued days off must be taken within 12 months.

If the contract is terminated for whatever reason, accumulated accrued days off must be paid to the employee at their ordinary rate. 

Rosters 

An employer needs to put staff rosters in a place that all employees on the roster can access easily.

An employee’s roster can be changed:

• at any time, if the employer and employee agree, or
• if the employer gives the employee 7 days’ notice.

Employers need to record these agreements in writing. The record can be digital, for example, an email or text message

In cases of emergency out of the employer’s control, they are allowed to disregard the requirement to provide 7 days’ notice of the change. 

For example, an emergency situation could be one that requires the aged care premises to be locked-down such as in the case of COVID-19.

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Minimum Hours 

Part-time and casual employees must receive a minimum payment of two hours for each rostered day.  

Broken Shifts 

A broken shift means a shift of two parts worked in a day where the span of the shift overall does not exceed 12 hours and where the employee can take a break of not more than 4 hours. 

A broken shift may be worked where there is a mutual agreement between the employer and employee to work the broken shift.

Payment for a broken shift will be at ordinary pay with penalty rates. 

All work performed beyond the maximum span of 12 hours for a broken shift will be paid at double time.

An employee must receive a minimum break of 10 hours between broken shifts rostered on successive days.

Sleepovers

Employees may, in addition to normal rostered shifts, be required to sleepover. A sleepover means sleeping in at night in order to be on call for emergencies.

The following conditions will apply to each night of sleepover:

• the sleepover hours must range between 8 and 10 hours; but not more; 
• employees must be given free board and lodging for each night that they have to sleepover; including a separate room with a bed and an additional sleepover allowance;
• employees must have access to the necessary staff facilities; 
• only emergency work should be performed during a sleepover;
• any non-emergency work that the employee does must be compensated with the relevant overtime rate;
• full-time employees must be paid overtime rates; while part-time and casual employees are paid at their ordinary rate plus the relevant shift and weekend penalties;
• if the employee can’t take their 8 hour break between shifts due to high volumes of work, they must be paid double the normal rate until they can take their 8 hour break; 
• casual employees should only be used for sleepovers when full-time employees or permanent part-time employees are not available for that duty; and 
• no employee will be required to sleepover during any part of their rostered days off. 

Saturday and Sunday Work

For employees who work on a Saturday and Sunday as part of their ordinary hours, they will be paid as follows: 

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Overtime Rates

The table below outlines the penalty rates that employees are paid for all work done in addition to their rostered ordinary hours on different days:

Rest Period After Working Overtime

Where an employee works overtime and their next rostered working day is less than 10 hours after they finish working the overtime, then the employer must either: 

• delay the start time of their next rostered working day to allow a 10 hours break; or 
• pay the employee at 200% of the minimum hourly rate until the employee has a break of at least 10 hours. 

Call-Back

If an employee is called back to their place of work after leaving, they must be paid for a minimum of 4 hours’ work at the appropriate rate for each time they are recalled. 

Where an employee regularly has to prepare to be called back, they will be paid for a minimum of 3 hours’ work at the correct rate above. 

Overtime Rest Breaks

An employee working overtime must be allowed a paid rest break of 20 minutes to have a meal and another 20 minute break every 4 hours of overtime worked (if they have to continue work after the rest break). 

Time Off Instead of Payment for Overtime

It is possible for an employer and employee to agree (in writing) to taking time off for their overtime, instead of getting paid the overtime rates. 

Employees are entitled to take time off based on what their overtime payment would have been. For example, if a casual employee worked 2 hours overtime, they are entitled to 3 hours time off (2 x 150%).

If the employee requests it, the employer must pay the employee for overtime covered by the agreement but not taken as time off; and any payment must be made in the next pay period following the request.

Employers may not put pressure on employees to take time off instead of payment for overtime.

Time off must be taken:

• within 6 months after the overtime is worked; and 
• at a time within that 6 month period that is agreed on by both the employee and employer 

Should the employee not take the time-off within the 6 months, the employer must pay the employee as per the overtime rates. 

If the employee’s employment is terminated, the employer must pay the employee for the overtime work at the applicable overtime rate. 

Example:

Milly, an employee at a local aged care facility, worked 4 hours overtime on a Tuesday night.

She had agreed with her employer to receive time off as opposed to getting paid for her overtime hours. 

According to the overtime rates, Milly is entitled to receive 200% of her ordinary hourly rate. So, her time off calculation will be as follows: 

4 hours x 200% overtime rate = 8 hours time off

However, this time off needs to be taken within six months of the worked overtime and at a time that is agreed on by both the employer and employee.

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The table below outlines the penalty rates for shiftworkers: 

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• An employee who works for: 2 hours or less in any higher classified duties will be paid at a higher rate for the time worked at the higher level; and 
• more than 2 hours in any higher classified duties will be paid at a higher rate for the full day or shift worked at the higher level.

Payment for Annual Leave Loading

Under the Aged Care Award, a rate of 17.5% leave loading on top of their annual leave is applied when an employee takes paid time off.

Employees must be paid the higher of:

• An annual leave loading of 17.5% of their ordinary pay rate; or
• The weekend and shift penalties the employee would have received if they weren’t on leave during that period.

Example:

If a full-time employee applies for leave between Thursday this week and Wednesday next week, he or she would typically work 8 hours of shiftwork on a Saturday too. 

The employer must calculate 38 hours, including a 17.5% leave loading and compare with how much the employee will typically receive if they had been paid working across that period with the Saturday penalty rates.

Whichever of the two calculations is higher is how much the employee should be paid across that period of time, not for individual days.

The idea is so that the employee is protected from being paid less for going on paid annual leave. 

Alternative Leave Arrangements: 

• Leave in advance: employers and employees may agree in writing to the employee taking a period of paid annual leave before the employee has accrued the leave. 

• Cashing out annual leave: employers and employees may agree in writing to cashing out a particular amount of an employee’s accrued paid annual leave. 
• Excessive leave accruals: employers and employees may agree in writing on how to reduce or eliminate excessive leave accrual. An excessive leave accrual is defined as having accrued more than 8 weeks paid annual leave, or 10 weeks for a shift worker.  

According to the NES, all employees are entitled to a paid day off on a public holiday (or unpaid for casual employees), except where reasonably expected to work. 

Employees working on public holidays receive 150% of the minimum hourly rate in addition to normal pay.

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Managing payroll under the Aged Care Award can be complex.

Pay Cat’s payroll system has the Award rules built in, ensuring every shift, penalty, and allowance is applied correctly.

Find out how Pay Cat helps you stay compliant with the Aged Care Award.

Already looking for a solution? Book a demo with our team.

Who is Pay Cat?

Pay Cat are payroll specialists helping Australian aged care providers simplify payroll and maintain 100% compliance with the Aged Care Award (MA000018).

As Employment Hero Payroll experts, we configure payroll systems to automate award interpretation, apply the correct pay rates and allowances, and eliminate manual calculations.

Our pre-built Aged Care Award compliance template ensures accurate shift penalties, overtime, and leave calculations every pay run, saving time, reducing errors, and keeping your business fully compliant.

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