CANBERRA (AAP) By Dr. Majid Khan-Concerns that a big pay hike for public sector workers could exacerbate inflation have been quelled by the federal government.
Elderly care workers’ wages rise significantly after the government announced it would include his $11.3 billion increase in the sector in the federal budget.
More than 250,000 of them will receive her 15% wage increase after the Fair Work Commission decided to raise wages from July.
The Reserve Bank is concerned that public sector wages could put more pressure on inflation, but Treasury Secretary Katie Gallagher has said wage increases are sustainable.
“When it comes to tracking and mitigating inflation, nothing makes me believe wages are contributing,” she told AAP. “There are many other reasons, and even if you break down inflation, it’s not about wages,” he said.
Treasurer Jim Chalmers said wage increases have been long overdue and could help attract more staff to the ailing sector.
“This is possible if we make the national budget more responsible and sustainable,” he said.
“We have done everything we can here to ensure that we can afford this historic pay rise for our aged care workers and weather it in a responsible manner.”
Following the Royal Commission’s recommendations, workers, including registered nurses, cooks and home care workers, are seeing the biggest ever wage increases.
Personal care workers in Level 4 Aged Care Rates will be able to take home $141.10 more per week, or more than $7300 per year, with this change. Registered nurses with Level 2.3 qualifications earn an additional income of $196.08 per week, or over $10,000 annually. Elderly Care Minister Annika Wells called the 15% increase “a tectonic shift.”
“Today’s wage hike will bring an additional 10,000 workers into the sector .We all know the workforce crisis is the biggest problem facing aged care.
“We will continue to work with all of them to ensure that there are enough workers not only in elder care, but across the care economy.”
Patricia Sparrow of COTA Australia, a peak age care facility, said the workforce has been undervalued for too long.
“Among other things, this increase in funding will ease pressure on the workforce and is a key recommendation from the Royal Commission to ensure a nurse around the clock, which has long been advocated by older Australians.
However, she said transparency is needed to ensure that the money is paid directly to the workers and not just to the benefit of the providers. Carolyn Smith, senior care director for the National Union of Workers, said the increase is taking its toll as many people work two or three shifts to keep residents safe during the COVID-19 pandemic.
The Association of Senior Citizens and Community Health Providers said the additional funding will help stem a brain drain from the sector, which is under increasing pressure to provide more services.
Shadow Treasurer Angus Taylor said government spending increases inflation.
“Workers keep saying they’re doing the right thing, but inflation is the highest in the world. Australia would love to be world champions, but they’re not,” he said.
