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Aged care salary: award rates versus the national minimum wage

Learn how aged care salary under the Aged Care Award compares to the national minimum wage, with index figures and examples for full-time and casual workers.

Aged care award rates start above the national minimum wage; a full-time Level 1 employee earns about $54,880 annually, giving an index of 50.6, while direct care roles can reach higher.

Aged care salary under the award

The Aged Care Award 2010 (MA000018) sets minimum pay rates for employees in aged care facilities. These rates are updated annually following the Fair Work Commission's wage review. From 1 September 2026, the award provides a structured pay scale for general employees and direct care workers.

How award rates compare to the national minimum wage

The national minimum wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week, annualising to $52,255. That gives an index of 48.2 on the Salary Index, where 100 equals full-time adult ordinary-time earnings of $108,352.

The lowest adult rate in the Aged Care Award – a Level 1 general employee – is $27.77 per hour, or $1,055.40 per week. That annualises to about $54,880, an index of 50.6. So the award floor sits about 5% above the national minimum wage. For a direct care employee at Level 2 (direct carer), the rate is $34.42 per hour, or $1,307.80 per week, annualising to $68,006, index 62.8.

These comparisons show that aged care salaries under the award are consistently above the legal minimum, especially for roles involving direct patient care.

Classification levels and pay progression

The award has seven levels for general employees and separate levels for direct care employees. For example:

  • General Level 1: $27.77/hr
  • General Level 4: $30.34/hr
  • General Level 7: $33.65/hr
  • Direct care Level 1 (introductory): $32.61/hr
  • Direct care Level 2 (direct carer): $34.42/hr
  • Direct care Level 5: $40.58/hr

Progression through levels depends on qualifications, experience, and the nature of duties. The award also includes rates for most senior food services employees, with Level 4 at $33.87/hr.

Casual and part-time rates

Casual employees receive a 25% loading on the minimum rate. For a Level 1 general casual, the rate is $34.71 per hour. That loading compensates for lack of paid leave. Part-time employees are paid the same hourly rate as full-time but work fewer hours, with overtime applying after 2 hours per day or 10 hours per day depending on the day.

Allowances and other payments

The award includes several allowances that can boost take-home pay. Leading hand allowances range from $0.88 to $1.94 per hour depending on the number of employees supervised. Uniform and laundry allowances are small per shift. Meal allowance for overtime is $17.30, and sleepover allowance is $65.31 per night. These are in addition to the base rate.

Superannuation and tax considerations

From 1 July 2026, the super guarantee is 12% on top of the salary. For a Level 1 full-time employee earning $54,880, that adds $6,585.60 in super contributions. Tax on the salary depends on the tax-free threshold. A single resident earning $54,880 would pay about $7,087 in tax plus Medicare levy of 2%, leaving a take-home of roughly $46,800. But that's before any HELP repayments or salary sacrifice.

Where aged care sits on the Salary Index

The how the index works compares gross annual earnings to the national benchmark. Aged care award rates cluster around index 50 to 65, depending on classification. That's below the all-industries average of 100, but reflects the award's role as a minimum floor. Many aged care workers are employed under enterprise agreements that pay above award, or receive additional allowances.

For comparison, the health care and social assistance industry index is 97.8, but that includes many higher-paid professionals. Aged care direct care workers at Level 5 earn about $40.58/hr, annualising to $78,800, index 72.7 – still below the industry average but above the award minimum.

State variations

The states page shows that average earnings vary by state. For example, NSW index is 101.2, while Tasmania is 88.6. Aged care salaries are set by a national award, so the minimum rates are the same everywhere. However, actual pay may differ due to local labour market conditions and enterprise agreements.

Conclusion

Aged care salary under the award is clearly above the national minimum wage, with entry-level rates about 5% higher and direct care roles significantly higher. The award provides a structured path for pay progression and includes allowances for additional responsibilities. For the most current rates, refer to the pay guides on the Fair Work Ombudsman website.

Questions people ask

What is the minimum hourly rate for an aged care worker under the award?

Under the Aged Care Award, a full-time Level 1 aged care employee earns a minimum of $27.77 per hour as of 1 September 2026. Rates increase with classification levels, with direct care roles starting at $32.61 per hour for introductory level.

How does an aged care salary compare to the national minimum wage?

The national minimum wage is $26.44 per hour (index 48.2). A Level 1 aged care award rate of $27.77 per hour is about 5% higher, giving an index of approximately 50.6. Higher classifications, such as direct carer Level 2 at $34.42 per hour, index around 63.5.

What allowances can increase an aged care salary?

The Aged Care Award includes allowances such as leading hand (up to $1.94 per hour), uniform ($1.26 per shift), laundry ($0.33 per shift), meal allowance for overtime ($17.30), and sleepover ($65.31 per night). These are paid in addition to the base rate.

100

Salary index

Around the national line

Min 48.2
100 100
ACT 109.9
Mine 154.7
  • In the account — Tax and Medicare estimate
  • Super on top — 12% employer super
  • Ordinary hour — If spread over 38 hours

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