This video explains the upcoming payroll changes for aged care workers under the Aged Care Award, effective from the first full pay period on or after 1 October 2025. It covers the new minimum weekly pay rates for direct care employees, from level one to level six, and highlights how these changes affect personal carers, senior carers, and team leaders in residential, community, and home care settings. The video also notes similar pay increases for nurses under the Nurses Award. It provides guidance on updating payroll systems, allowances, and penalty rates to ensure compliance and avoid underpayment risks, including for organisations operating under SCHADS.
If your business employs aged care workers, there's an important payroll update you can't miss. For the first full pay period on or after the 1st of October 2025, new minimum pay rates apply under the Aged Care Award. Here's what's changing and how to make sure your payroll stays compliant.
This change comes from the Fair Work Commission's ongoing value case for aged care, which has been rolling out in stages over the past few years. The last update increases the minimum weekly pay rates for direct care employees from level one through to level six under the Aged Care Award. In short, every level within the direct care stream now has a higher minimum rate, effective from the first full pay period on or after the 1st of October 2025.
You'll see the updated figures on screen, or you can find the full rate table in our latest article. These new rates apply to direct care workers covered by the Aged Care Award. That includes personal carers, senior carers, and team leaders working in residential, community, or home care settings.
If your business also employs nurses or midwives, there are similar pay increases under the Nurses Award taking effect at the same time. To stay compliant, update pay categories and classifications in your system before the October pay run. Make sure the first full pay period on or after the 1st of October uses the new rates. Review any allowance or penalty rates that are calculated as a percentage of the base rate. Even small delays in updating can lead to underpayment risks and compliance issues later on.
At Pay Cat, we've already updated our Aged Care Award template to include the new rates. That means if you're using Pay Cat payroll, your system will automatically apply the correct minimums, keeping your pay runs compliant without manual updates.
Award pay rates and what they mean for your business. Read the article at paycat.com.au/blog/aged-care-pay-rise-2025.