Aged Care Award (MA000018) 2025 Compliance Guide

The Aged Care Award MA000018 remains one of Australia’s most complex employment regulations, and with 2025 updates bringing significant changes, aged care providers must stay ahead of compliance requirements. This comprehensive guide covers everything you need to know about the aged care award 2025 to protect your business from big fines and ensure full compliance.

What is the Aged Care Award MA000018?

The Aged Care Award (MA000018) is a modern award that sets minimum employment conditions for workers in Australia’s aged care industry. The Aged Care Award applies to employers and employees in the aged care industry, on-hire employees placed with aged care employers, and group training employers providing apprentices or trainees to the industry.

With minimum pay rates increasing for those on the Aged Care Award starting 2025, with aged care workers receiving a 3 per cent increase to their minimum pay rate, compliance has never been more critical.

Why Does Your Business Need an Aged Care Compliance Checklist?

Having an aged care compliance checklist is essential because non-compliance can result in severe penalties. With the hundreds of awards, agreements, entitlements and obligations to navigate, aged care providers should review their compliance before facing costly wage theft accusations.

Key Compliance Areas to Monitor:

• Minimum wage payments and penalty rates
• Overtime calculations and allowances
• Superannuation obligations
• Leave entitlements and accruals
• Roster change notifications

What is the Aged Care Award Pay Rates in 2025?

All aged care award minimum wages are published in the official Fair Work Commission pay guides. The Fair Work Commission announced a 3.5% increase to the National Minimum Wage and minimum award wages from 1 July 2025, making regular pay rate reviews crucial for compliance.

*add link to 2024v2025 blog*

Who is Covered Under the Aged Care Award?

The award covers three main employment types:

• Full-time employees: Work an average of 38 ordinary hours per week
• Part-time employees: Work less than 38 hours per week with agreed regular hours
• Casual employees: Work irregular hours and receive an additional 25% casual loading

How to Ensure Complete Aged Care Award Compliance

Maintaining compliance with the aged care award requires attention to multiple complex areas. The most common compliance issues occur around penalty rate calculations, allowance provisions, overtime payments, and superannuation obligations.

Comprehensive Aged Care Compliance Checklist:

✅ Employee Classification & Pay Rates

• Verify all employees are correctly classified under the new 2025 direct care structure
• Apply current minimum wage rates for each classification level
• Ensure casual employees receive 25% casual loading on all payments
• Regular review of classification levels as duties change

✅ Penalty Rates & Shift Work

• Saturday work: 150% for ordinary hours worked between midnight Friday and Saturday
• Sunday work: 175% for ordinary hours worked between midnight Saturday and Sunday
• Afternoon shifts: 110% or 112.5% depending on shift type
• Night shifts: 115% or 110% depending on classification
• Apply penalties only to ordinary hours, not overtime hours

✅ Overtime Calculations

• Monday-Friday first 2 hours: 150% for full-time/part-time, 175% for casual
• Monday-Friday after 2 hours: 200% for full-time/part-time, 225% for casual
• Saturday/Sunday overtime: 200% for full-time/part-time, 225% for casual
• Public holiday overtime: 250% for full-time/part-time, 275% for casual
• Ensure 10-hour rest period after overtime or pay 200% until rest is taken

✅ Allowances & Additional Payments

• Uniform allowance: When employer doesn’t provide adequate uniforms
• Laundry allowance: When employees wash their own uniforms
• Leading hand allowance: Weekly payment based on number of employees supervised (2+ employees)
• Meal allowance: For employees working more than 1 hour overtime
• Nauseous work allowance: For handling offensive or dirty materials
• Tool allowance: For chefs and cooks not provided with necessary tools
• Vehicle allowance: For authorized use of personal vehicles on duty
• Sleepover allowance: Plus free accommodation and meals during sleepover periods

✅ Hours of Work & Rostering

• Ordinary hours: Maximum 38 hours per week, 76 hours per fortnight, or 152 hours per 28-day cycle
• Daily limits: 8 hours day shift, 10 hours night shift maximum
• Roster changes: Provide 7 days written notice (except genuine emergencies)
• Minimum hours: 2-hour minimum payment for each rostered shift
• Broken shifts: Maximum 12-hour span with up to 4-hour break between parts
• Rest between shifts: Minimum 10 hours (can be reduced to 8 by mutual agreement)

✅ Rostered Days Off (RDO)

• Weekly: 2 full days off per week
• Fortnightly: 4 full days off per fortnight
• 28-day cycle: 8 full days off per cycle
• Consecutive days off where practical
• No sleepover duties during rostered days off

✅ Leave Entitlements Management

• Annual leave: 4 weeks per year plus 17.5% loading (pay higher of loading or shift penalties)
• Personal/sick leave: 10 days per year for full-time employees
• Long service leave: As per state/territory legislation
• Excessive leave: Manage accruals over 8 weeks (10 weeks for shift workers)
• Leave in advance: Written agreement required
• Leave cashing out: Written agreement with specific conditions

✅ Superannuation Compliance

• Rate: 12% of ordinary time earnings from 1 July 2025
• No threshold: All eligible employees regardless of earnings
• Payment timing: By 28th day of following month
• Choice of fund: Offer compliant choice unless employee has existing fund

✅ Public Holiday Entitlements

• Payment: 150% additional payment for work on public holidays
• Casual employees: Normal hourly rate plus 150% penalty (no base pay as unpaid day off)
• Reasonable request: Employees can refuse unreasonable requests to work
• Substitution: By agreement, public holidays can be substituted

✅ Break Entitlements

• 5-7.6 hours shift: 1 × 10-minute paid break + 1 × 30-60 minute unpaid meal break
• 7.6+ hours shift: 2 × 10-minute paid breaks + 1 × 30-60 minute unpaid meal break
• Overtime breaks: 20-minute paid meal break, then 20 minutes every 4 hours
• Breaks not taken at start/end of shift or during other breaks

✅ Special Entitlements

• Call-back: Minimum 4 hours payment at appropriate rate for each call-back
• Higher duties: Over 2 hours = full shift at higher rate, under 2 hours = actual time
• Time off in lieu: Written agreement required, must be taken within 6 months
• Sleepover conditions: 8-10 hours, separate room, emergency work only
• Job search entitlement: Up to 1 day paid time during notice period

✅ Record Keeping Requirements

• Maintain accurate time and wage records for 7 years
• Document all agreements in writing (roster changes, TOIL, leave arrangements)
• Keep copies of rosters accessible to all rostered employees
• Record all penalty rates, allowances, and overtime calculations
• Document superannuation payments and choice of fund elections

Advanced Aged Care Award Compliance Strategies

Sleepover Entitlements

Sleepover hours must range between 8 and 10 hours, with employees given free board, lodging, and a separate room with bed plus additional sleepover allowance.

Superannuation Updates

The removal of the $450 monthly threshold means all eligible employees must receive superannuation, regardless of earnings. From 1 July 2022, the $450 per month threshold for superannuation was removed. Employers must now pay the super guarantee for all eligible employees.

Technology Solutions for Compliance

Modern HR systems like Workstem can automate aged care award compliance by:

• Automatically calculating penalty rates and allowances
• Tracking roster changes and notifications
• Managing leave accruals and entitlements
• Generating compliant payslips and reports
• Ensuring accurate superannuation calculations

Aged Care Award Penalty Rate Quick Reference

How Workstem Simplifies Aged Care Award Compliance

Simplify award interpretation and payroll processing with Workstem, the all-in-one workforce management & payroll software designed for every industry. Our system supports 122+ modern awards & 34 EAs, including the Aged Care Award 2025, and keeps you up-to-date with changes in wage rates, penalty rates, and overtime rules. Workstem offers:

• Automated award interpretation
• Real-time wage calculations and timesheet syncing
• Employee self-service app for rosters and payslips
• Seamless integrations with Xero, NetSuite, and more

Choose from our Standard or Advanced plan to suit your business needs, and stay Fair Work compliant with confidence.

Book a free demo with our payroll experts and experience how Workstem can streamline your payroll and workforce operations.

FAQs About the Aged Care Award

Q1: What are the main aged care award 2025 changes?

A1: The 2025 updates include clearer definitions for direct care employees, new classification structures, and a 3% minimum wage increase that took effect from January 1, 2025.

Q2: How can I ensure full aged care award compliance?

A2: Implement a comprehensive aged care compliance checklist, use automated payroll systems, regularly audit pay calculations, and stay updated on award changes through official Fair Work Commission communications.

Q3: What are the most common aged care award compliance issues?

A3: Common issues include incorrect penalty rate calculations, missed allowances (uniform, meal, sleepover), overtime miscalculations, and superannuation underpayments.

Q4: How often do aged care award pay rates change?

A4: Pay rates typically increase annually following Fair Work Commission decisions. The most recent increase was 3.5% from July 1, 2025, with additional aged care-specific increases taking effect from January 2025.

Q5: What penalties apply for aged care award non-compliance?

A5: Penalties for non-compliance can include back-payment of wages, penalty interest, and significant fines. The Fair Work Ombudsman can also pursue civil penalties against employers who engage in serious contraventions.

Q6: Do I need different aged care compliance checklist items for different employee types?

A6: Yes, full-time, part-time, and casual employees have different entitlements under the aged care award. Casual employees receive 25% loading but no paid leave, while permanent employees accrue various leave entitlements.

Q7: How do I calculate sleepover allowances under the aged care award?

A7: Sleepover allowances are paid in addition to the sleepover period payment. Employees must receive free accommodation, meals, and access to staff facilities, plus the prescribed allowance rate for each sleepover period.

Q8: What’s the difference between penalty rates and overtime under the aged care award?

A8: Penalty rates apply to work performed during specific periods (weekends, shifts) as part of ordinary hours. Overtime rates apply to work performed beyond ordinary hours and are generally higher than penalty rates.

Read More：

Updated Aged Care Award Pay Guide

Aged Care Award Guide [MA000018]

Aged Care Award