Aged Care Award Rates 2025/2026

The Aged Care Award 2010 [MA000018] sets minimum pay and conditions for many employees in residential aged care (and related residential accommodation/care settings).

This is a practical, plain-English compliance guide for Australian aged care employers including nursing homes, hostels, retirement villages and similar residential care facilities.

Quick summary for time-poor aged care managers

The four compliance pillars that drive aged care underpayments

If you only check four things for each employee, make it these. Most aged care underpayments trace back to one or more of the issues below.

If you only skim one section, make it this one:

• The Aged Care Award [MA000018] sets minimum pay and conditions for many employees in residential aged care (and related residential accommodation/care settings).
• There are different pay structures for:
  • Aged care employee—general (Levels 1–7)
  • Aged care employee—direct care (Levels 1–6)
  • Most senior food services employee (special higher rates, Levels 4–7)
• In 2025/26, a major trap is missing the 1 October 2025 uplift for direct care classifications.
• You must get four things right for every staff member:
  • Award coverage – does MA000018 apply to your business and this worker?
  • Classification – general vs direct care vs most senior food services (and the correct level).
  • Employment type – full-time, part-time, casual (and minimum engagement rules).
  • When they work – weekend work, shift times, public holidays, broken shifts, sleepovers, overtime triggers.

"Sanity check" adult minimum hourly rates (ordinary weekday hours)

General employees – NOT direct care (weekday ordinary hours)

• Level 1: $26.51/hr
• Level 3: $28.62/hr
• Level 6: $31.55/hr

Direct care employees ONLY (from 1 Oct 2025)

• Level 2 (Direct Carer): $32.86/hr
• Level 3 (Qualified): $34.59/hr
• Level 5 (Specialist): $37.35/hr

Headline penalties (the "big levers")

• Saturday (FT/PT ordinary hours): 150%
• Sunday (FT/PT ordinary hours): 175%
• Casual weekend (instead of casual loading): Saturday 175%, Sunday 200%
• Public holiday: special rules (FT/PT: election of 250% pay OR 100% pay + the same hours added to annual leave; casual: 275%)
• Shift allowances: 10% / 12.5% / 15% depending on shift start time (not usually cumulative with weekend/public holiday premiums)

Award coverage (start here)

Does the Aged Care Award apply? – quick self-check

Answer the questions below to identify whether the Aged Care Award 2010 [MA000018] is likely to apply. This is a guide only—always verify using Fair Work's Pay and Conditions Tool (PACT).

Who the Aged Care Award covers (and doesn't cover)

The Fair Work Ombudsman summary explains the Award covers employers in the aged care industry (residential accommodation/care settings) and lists typical covered roles (personal care workers, nursing assistants, cleaners, laundry hands, cooks/food services, admin, grounds maintenance, etc.).

It also states examples of who it doesn't cover, including health professionals such as nurses and home care services.

"Which award applies?" – common aged care scenarios (rule of thumb)

What the Aged Care Award actually is

Think of MA000018 as the minimum "rulebook" you can't go below when it applies. When interpreting any clause, refer to the consolidated Aged Care Award 2010 (MA000018). It sets:

• Minimum wages (weekly wages per classification, and how to derive hourly rates)
• Rostering rules, ordinary hours, days off, rest breaks, minimum engagements
• Penalty rates, shift allowances, overtime rates, recall rules
• Broken shift rules (mutual agreement, span limits, double time beyond span)
• Sleepover rules and payments (including the sleepover allowance and how work during sleepover is paid)
• Allowances (leading hand, uniform, laundry, meal allowance, vehicle, etc.)
• Award-specific leave provisions (e.g., leave loading; shiftworker definitions for annual leave)

Who it covers (typical roles)

Examples commonly covered under MA000018 include:

• Personal care workers and nursing assistants
• Cleaners and laundry hands
• Drivers
• Food services employees (including cooks)
• Reception and administrative staff
• Grounds/maintenance workers (gardeners, handymen)

2025/26 pay rates overview

Key date you must not miss: 1 October 2025 (direct care)

Minimum award rates for residential aged care direct care employees increased from 1 October 2025, with the Award showing both the "until 30 Sep 2025" and "from 1 Oct 2025" rates. For sector context on the October 2025 changes, see the aged care worker wages guidance for providers.

How hourly rates are derived

The Award states "ordinary hourly rate" is the appropriate weekly rate divided by 38.

Adult minimum wages – Aged care employee—general (Levels 1–7)

Indicative adult minimums (ordinary hours) – based on the weekly wage table: Verify all figures against the Pay Guide – Aged Care Award [MA000018] before paying staff.

These are drawn from the Award wage table for Aged care employee—general. Verify using the Pay Guide – Aged Care Award [MA000018] for the current year.

"Most senior food services employee" – special higher wage table

If your facility has a single most senior food services employee, the Award provides higher weekly wages for Levels 4–7 under that category:

(Verify eligibility carefully—this category is facility/role-structure dependent.)

Adult minimum wages – Aged care employee—direct care (Levels 1–6)

Direct care minimum hourly rates (rate change on 1 October 2025)

The Aged Care Award includes a mandatory rate increase for direct care employees from the first full pay period on or after 1 October 2025. Verify all figures against the Pay Guide – Aged Care Award [MA000018] before paying staff. For the "first full pay period on or after 1 July 2025" application rule, refer to the PACT pay guide (from 1 July 2025).

These rates are explicitly shown as changing at 1 October 2025.

Direct care classification levels (how to place staff correctly)

The Award's direct care definitions include practical "anchors" like months of experience and minimum qualifications. For example:

• Level 1 (Introductory): less than 3 months' aged care experience
• Level 2 (Direct Carer): 3 months' or more aged care experience
• Level 3 (Qualified): typically requires Certificate III (relevant)
• Level 4 (Senior): certificate III and experience requirements (including post-1 Jan 2025 criteria)
• Level 5 (Specialist): typically requires Certificate IV (relevant)
• Level 6 (Team Leader): certificate IV plus team-leading / supervision style duties

Direct care classifications should be reviewed whenever duties change and at least annually.

Employment types and rostering (the rules that drive overtime)

Ordinary hours (core rule)

Ordinary hours are 38 per week, or can be averaged over longer cycles (e.g., 76 per fortnight or 152 over 4 weeks) under the Award's rostering framework. If you run repeating roster patterns, roster templates help standardise compliant cycles and reduce last-minute edits.

Span of ordinary hours (day worker vs shiftworker)

• Day worker ordinary hours: 6:00 am to 6:00 pm Monday–Friday
• Shiftworker: regularly rostered outside those hours

Rosters and roster changes

• Rosters must be displayed and generally shown at least two weeks before the roster period starts.
• 7 days' notice is required for roster changes (with illness/emergency exceptions).

If you want fewer roster-change mistakes and clearer compliance controls, consider using rostering software built for award compliance. To reduce manual errors, some providers use auto-scheduling that builds rosters around availability and compliance rules. For unplanned absences, managed shift swaps can reduce last-minute roster change errors and improve coverage.

Notice obligations are easier to meet when you can notify staff of roster changes in one place. Using daily, weekly and monthly roster views makes it easier to spot weekend work, long spans, and coverage gaps before payroll. A mobile rostering app helps staff see rosters and changes quickly, which supports notice requirements and reduces disputes.

Minimum engagements (easy payroll trap)

• Full-time: minimum payment of 4 hours for each engagement in respect of ordinary hours of work
• Tip: Record each "engagement" clearly (call-in, split attendance, late cancellation) so payroll can apply the correct minimum.
• Permanent part-time and casual: minimum payment of 2 hours per engagement

Good availability tracking reduces short shifts, late changes, and accidental minimum engagement breaches. Facilities often use a kiosk time clock to capture start/finish times consistently across teams.

Broken shifts (common in community-style rostering)

Broken shifts are tightly defined and only apply to casual or permanent part-time employees:

• Breaks (excluding meal break) total not more than 4 hours
• Span of hours not more than 12 hours
• Must be by mutual agreement
• Beyond 12-hour span: double time
• Each portion must still meet the 2-hour minimum engagement rule

Tools with automatic compliance warnings can flag minimum engagement breaches, broken shift spans, and penalty-rate risks before you publish the roster.

Note: This checker does not assess whether each portion of a broken shift meets the minimum engagement requirement (2 hours per portion for part-time and casual employees). This must be checked separately.

Sleepovers (only if you follow the clause)

A sleepover means sleeping in to be on call for emergencies, with conditions including:

• Sleepover span: 8–10 hours
• Free board and lodging; separate room
• Sleepover allowance is payable (see Allowances section)
• Only emergency work should be performed during a sleepover (the Award defines an emergency and sets specific payment rules for work performed during a sleepover).
• Keep written records of each sleepover arrangement and any call-outs (time, duration, reason) to support correct payment and audit defensibility.

During high-pressure periods, live attendance helps managers see who is currently on site and respond to gaps quickly.

Penalty rates and overtime (where underpayments happen)

Weekend ordinary hours (non-casual)

If ordinary hours include weekend work:

• Saturday (midnight Fri–midnight Sat): time and a half (150%)
• Sunday (midnight Sat–midnight Sun): time and three quarters (175%)

These weekend rates substitute for (and are not cumulative on) shift premiums.

Weekend work (casual)

Casual weekend rates are:

• Saturday: 175% of the ordinary hourly rate
• Sunday: 200% of the ordinary hourly rate

These substitute for the casual loading (no stacking).

Penalty substitution rules (no stacking)

Shift allowances (afternoon/night shifts)

Shift allowances add the following to the ordinary rate:

• Afternoon shift starting 10:00 am–before 1:00 pm: 10%
• Afternoon shift starting 1:00 pm–before 4:00 pm: 12.5%
• Night shift starting 4:00 pm–before 4:00 am: 15%
• Night shift starting 4:00 am–before 6:00 am: 10%

Plus an important condition for employees working less than 38 hours/week (eligibility depends on start/finish timing).

Public holidays (special rule – do not "guess")

For full-time day workers and part-time employees, the Award uses a public holiday election:

• The employee elects to either:
  • be paid 250% of the ordinary hourly rate for hours worked on the public holiday, or
  • be paid 100% for hours worked and have the same number of hours added as paid annual leave.
• The election is made on commencement and may then be made again on the employee's anniversary date each year (and otherwise only by agreement).

Compliance tip: Record and retain the election in writing (contract pack / onboarding / annual review) so payroll can apply the correct outcome.

For casual employees, payment is 275% for hours worked on a public holiday, and this is in substitution for casual loading and weekend rates.

Public holiday election options (full-time day workers and part-time employees)

Overtime rates (use the trigger rules, not memory)

Overtime is generally paid (in summary):

Full-time:

• Mon–Fri: 150% first 2 hours, then 200%
• Sat/Sun: 200%
• Public holiday: 250%

Part-time: overtime generally applies when:

• Hours exceed the agreed rostered hours and no written variation agreement exists
• Hours exceed 10 in a day
• Hours exceed 38 per week or 76 per fortnight

Written part-time agreements are critical to managing overtime exposure.

Casual overtime: expressed in the Award as inclusive rates (e.g. 187.5% then 250%, weekend 250%, public holiday 312.5%). Do not add casual loading on top of these rates. Payroll systems must be configured to either: (a) pay the inclusive rate, or (b) calculate base + loading + overtime so the total equals the Award percentage.

Recall to work (minimum payment risk)

If recalled to work overtime after leaving, there's a minimum 4 hours' pay at the appropriate rate per recall. A centralised team messaging channel reduces missed messages about swaps, recalls, or last-minute coverage needs.

Allowances (the "small amounts" that create big backpay)

Allowance amounts below are from the Allowances Sheet – Aged Care Award [MA000018] operative 1 July 2025. Allowance amounts should be checked against the FWC Allowances Sheet – Aged Care Award [MA000018].

(Always verify the current allowance sheet/pay guide because some allowances index with CPI or adjust with the standard rate.)

Common allowances and amounts (operative 1 July 2025)

Leave entitlements (Award + NES) – key aged care points

Annual leave

Annual leave is an NES entitlement. The Award contains additional rules that can affect: (a) whether an employee is treated as a "shiftworker" for annual leave purposes, and (b) how annual leave loading is calculated for some employees. Always confirm the applicable Award clause and/or the Fair Work Pay Guide / PACT outcome for the employee.

Step-by-step compliance plan (aged care edition)

Aged care award compliance checklist

1. Confirm award coverage (per worker, per entity)

• Use Fair Work's award summary + PACT tool
• Be especially careful with home care, health professionals, and contractors

If you operate more than one facility, manage rosters across multiple sites while keeping consistent rules and reporting.

2. Classify every employee (and document it)

• General vs Direct care vs Most senior food services employee
• Keep evidence of qualifications and experience start dates for direct care levels

Keeping classification evidence and employment documents organised is easier with HR software for compliance records. Build classification, employment type, and pay setup into employee onboarding so it's done correctly from day one.

3. Set correct base rates

• Use the correct wage table (general vs direct care)
• Ensure payroll reflects the 1 Oct 2025 uplift for direct care roles

Underpayments often happen between rostering and payroll—payroll integration helps ensure approved hours and penalties flow through correctly. If you run payroll in Xero, consider Xero payroll integration to reduce rekeying and mismatched hours. If you use MYOB, MYOB payroll integration can help keep timesheets and payroll aligned.

4. Build rostering/pay rules into payroll

• Apply minimum engagements (4 hours FT; 2 hours PT/casual)
• Apply weekend and shift rules correctly (don't stack where the Award substitutes)
• Handle public holidays using the Award's election approach (FT/PT) and casual PH rate

5. Manage broken shifts and sleepovers correctly

• Broken shifts must meet the definition and agreement requirements; pay double time beyond the span
• Sleepovers require allowance + correct treatment of work performed (and limits on using casuals)

6. Pay allowances and itemise them

• Leading hand, uniform/laundry, meal allowance, vehicle, sleepover

7. Keep clean records

• Rosters, roster changes, agreements (e.g., broken shifts, time off instead of overtime if used), public holiday elections, hours worked, classifications, allowances

Accurate pay depends on accurate records—track actual hours worked to support payroll accuracy and audit readiness. For audits and internal checks, keep roster reporting that shows who worked, when, and what changed. For mobile or multi-site teams, GPS geofencing can help validate where shifts were worked. If identity confirmation is needed, photo proof can reduce disputes about who attended a shift. Clear procedures reduce disputes—use policy management to publish rostering, overtime, and public holiday election processes.

8. Run a quarterly "reality check"

• Spot-check: weekend penalties, public holiday handling, part-time overtime triggers, sleepovers, broken shifts, and direct care classifications

Use analytics to spot-check penalty-heavy patterns (weekends, PH work, broken shifts, overtime spikes) before they become backpay issues. If managers need quick guidance, a Fair Work compliance bot can help answer common questions while you're building rosters and processing payroll.

Common mistakes in aged care (and how to avoid them)

Using the wrong award

Home care and nurses are common mis-award areas.

Misclassifying direct care employees

The Level 2/3/4/5/6 distinctions often depend on qualification and experience thresholds.

Missing the 1 October 2025 direct care rate change

If payroll wasn't updated, underpayments can be immediate and material.

Stacking penalties incorrectly

Weekend rates substitute for shift premiums in key situations, and casual weekend/PH rates substitute for casual loading.

Public holiday payments done "by instinct"

FT/PT day workers have an election model (250% pay vs 100% pay plus leave accrual). Casual PH rate is a separate rule.

Broken shift rules ignored

Missing mutual agreement, exceeding span without double time, or failing minimum engagement per portion.

Sleepovers paid incorrectly

Not paying the allowance; not paying work performed during sleepover at the correct rates; overusing casuals for sleepovers.

Final takeaways

• Confirm coverage first: MA000018 is for residential aged care-type settings; it doesn't cover some health professionals (e.g., nurses) and doesn't cover home care services.
• Classify properly: Direct care vs general (and the correct level) drives everything.
• Don't miss 1 Oct 2025 direct care increases: Update payroll and back-check if needed.
• Rostering rules matter: Minimum engagements, broken shifts, sleepovers, and part-time overtime triggers are frequent audit failure points.
• Always verify current rates: Use the consolidated Award, allowance sheets, pay guides, and PACT for the current year before paying.