Minimum wage rises from July 1: What care sector leaders need to know

From July 1, 2025, Australia’s minimum wage increases to $24.10 per hour, following the Fair Work Commission’s 3.75% national rise. While widely welcomed as a cost-of-living response, this shift presents both clarity and complexity for leaders in aged care, disability, and community health services.

For boards, CEOs, CFOs, and HR leaders, the message is simple: not every employee will be affected, but every organisation needs to understand who is, who isn’t, and what comes next.

Who will be directly affected?

This increase only applies to employees on:

• The national minimum wage
• Award minimum rates, where no enterprise agreement or sector-specific decision overrides them

This means some of the lowest-paid, non-clinical workers in aged care and disability support may be impacted, including:

• Entry-level personal care workers
• Cleaners, kitchen hands, receptionists, and lifestyle assistants
• Support staff employed under Aged Care Award, Health Professionals Award, or SCHADS Award, without EBA coverage

In many large providers, most direct care staff will already be on enterprise agreements or award rates above this threshold. However, in smaller services, labour-hire, or regional settings, the increase could apply more broadly.

Financial impact: modest but uneven

• The new national minimum wage: $24.10/hour, or $915.90 per 38-hour week
• Casual loading: 25%, lifting casual minimum wage to $30.13/hour
• Full-time workers on the minimum wage will earn around $33 more per week before tax

While the financial impact may appear modest at an individual level, the cumulative effect across rosters and support services may influence budgeting, award compliance reviews, and workforce modelling, particularly for organisations already under margin pressure.

Strategic implications for leaders

Award clarity is critical

Leaders must ensure payroll teams, managers, and rostering systems are crystal clear on which workers are covered by EBAs, which are on awards, and whether the increase applies.

Communications matter

Some employees may expect a pay rise when they’re not legally entitled to one. Clear internal communications can avoid confusion or distrust. Consider pre-emptive FAQs or briefings for team leaders.

It’s not the last wage change coming

This increase sits outside the broader aged care Work Value Case decisions, which are still rolling out. The next key implementation is due in January 2026, impacting many indirect care roles.

Back to basics on position descriptions

Now’s the time to ensure staff are correctly classified under the right award level or EBA clause. Misclassifications can lead to underpayment risks as the minimum standards rise.

A sector-wide shift in motion

For aged care and disability providers, the July 1 wage rise is a reminder that wage reform is ongoing, fragmented, and deeply consequential. The industry is being reshaped by a combination of:

• Regulatory reform
• Workforce attrition
• Cost-of-living volatility
• Changing expectations of care quality and staff value

Smart leaders will see this moment not just as a payroll event, but as an opportunity to tighten compliance, rebuild trust, and future-proof workforce strategy.