The Government is seeking to postpone aged care workers' pay rises.

The federal government is proposing to split up significant pay raises for aged care workers, citing the potential risk of exacerbating labour shortages across various sectors. 

In a submission to the Fair Work Commission, the government laid out a plan to incrementally introduce wage increases scheduled for around 250,000 direct care workers, suggesting two separate phases: the first on January 1, 2025, and the second on January 1, 2026.

This delay comes despite the commission's decision in March to award pay rises between 2 per cent and 13.5 per cent, recognising the historical underpayment in what are predominantly gendered roles. 

The cost of these increases is expected to be substantial, with an estimated $3.3 billion impact on the federal budget over the next four years.

The government says it is concerned that large wage increases will draw workers away from other critical sectors, such as hospital nursing, disability care, and childcare - all of which are currently experiencing their own shortages. 

“In this context, the Commonwealth considers it prudent to adopt a phased approach to the funding of large one-off wage increases,” the government submission says.

However, this proposal has met with frustration from health unions. Gerard Hayes, National The Health Services Union says delaying the full pay rise could lead to further losses of staff, as it would mean a six-year wait for aged care workers to receive their increased pay, given the wage value case began in 2020.

The United Workers Union says that the response to last year's 15 per cent increase has already seen workers from other roles within aged care, such as cooks and cleaners, stepping into caregiving positions. 

The union wants a comprehensive adjustment in wages across sectors, not slowing down the increases in one area.

The Fair Work Commission has yet to make a final decision on the government's request. 

Last year, it overruled a similar government plea for phased increases, instead implementing a 15 per cent raise from July 1.