Pay equity settlement - Information for providers

The settlement covers 55,000 workers in aged and disability residential care and home and community support services around New Zealand. Legislation will be introduced to Parliament which will prescribe the minimum pay rates to ensure providers pass on the new wages to employees.

For data collection and other implementation guidance, see the dedicated sections for each sector:
 

Frequently asked questions

We are regularly updating the frequently asked questions and answers in our Employer factsheets. This latest version was updated on Wednesday 24 May 2017. If you have questions that are not answered here, please contact us on payequity_implementation@moh.govt.nz.


Contact the pay equity implementation team

There is a dedicated pay equity implementation email address, payequity_implementation@moh.govt.nz, which you can send questions to at any time. Someone from our team will respond to you as soon as possible.


Settlement implementation

Aged Residential Care

Information for Aged Residential Care providers, including:

  • Data collection (Workforce Translation Tool)
  • Operational Policy Document
  • Newsletters

Read more

Community and Residential Living

Information for Community and Residential Living providers, including:

  • Data Collection Tool
  • Operational Policy Document
  • Information session presentations
  • Newsletters

Read more

Home and Community Support Services

Information for Home and Community Support Services providers, including:

  • Data Collection Tool
  • Operational Policy Document
  • Information session presentations
  • Newsletters

Read more


Settlement funding

The $2.048 billion settlement over five years will be funded through an increase of $1.856 billion to Vote Health and $192 million to ACC. ACC levies are set for the coming years, but may possibly increase over the next decade to support this. However, that is not definite. There may also be an increase in costs for people in aged residential care facilities, whose assets keep them above the subsidy threshold. This will be determined through the annual Aged Residential Care contract negotiations.

The settlement fully funds the direct wage costs faced by the providers and in doing so relieves a significant amount of wage pressure which they would have had to manage over the next five years. Providers will also receive the benefits of lower turnover due to increased wages and a more capable and skilled workforce through access to training and qualifications.


Implementation guidance

The Ministry of Health is currently working on the implementation of the settlement agreement for 1 July 2017 and working with funders to advance the implementation plan. This includes developing the contracting and payment mechanisms, operational policy framework, and system changes and payments to ensure the implementation of the new wage structure goes smoothly.

Implementation next steps

Implementation for 2017/2018 is centred on ensuring employers can be funded to meet the increased costs from 1 July 2017.

  • By 24 May 2017: Home and Community Support Services and Community and Residential Living providers must submit completed Data Collection Tools.
  • By 31 May: Claim forms for employee attendance at union ratification meetings must be submitted to the Ministry. Further information on the process to claim for an employee’s time to attend a meeting is available by downloading the Ratification Meeting Payment Declaration form (Word, 434 KB). Ratification claims received by 31 May will be paid on 20 June 2017. For ratification claims received after 31 May the Ministry will aim to process them within 10 business days but no earlier than 23 June 2017.
  • By 2 June 2017: Aged Residential Care providers must submit completed Workforce Translation Tool
  • By 1 July 2017: Legislation will be progressed through Parliament to give effect to the Settlement Agreement and ensure the new wage rates are passed onto workers from 1 July
  • From 1 July 2017: Providers have a legal obligation to ensure employees receive their increased wages in the first pay day from their employer (ie, weekly or fortnightly, depending on their normal pay run).
  • From 1 July 2017: Providers will advise funders that they have commenced making payments to employees. Unions will also play a role in ensuring that employees have received the new wages.

In this section

  • Information for Aged Residential Care providers for the aged and disability residential care and home and community support services pay equity settlement, including Operational Policy Documents, data collection and submission process and newsletters Read more
  • Information for Community and Residential Living providers for the aged and disability residential care and home and community support services pay equity settlement, including Operational Policy Documents, data collection and submission process and newsletters Read more
  • Information for Home and Community Support Services providers for the aged and disability residential care and home and community support services pay equity settlement, including Operational Policy Documents, data collection and submission process and newsletters Read more
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