How the care and support workers pay equity settlement affects people using Individualised Funding, Enhanced Individualised Funding and Enabling Good Lives Hosted Personal Budgets.
Note: An easy read version of this information is available:
On this page:
- The Care and Support Workers (Pay Equity) Settlement Act 2017
- What it means for budget holders
- Applying the correct rate
All eligible care and support workers employed by people using Individualised Funding, Enhanced Individualised Funding and Enabling Good Lives (IF/EIF/EGL) Hosted Personal Budgets are covered by the Care and Support Worker (Pay Equity) Settlement Act 2017 (the Act).
Under the Act, hosted personal budget holders (employers) are obligated to:
- pay their eligible care and support workers the new minimum pay rates. (In most cases, this is an increase in pay rates.); and
- ensure that care and support workers are able to attain qualifications.
Your allocated budget has increased so you can comply with the requirements of the legislation. The increase has been calculated to ensure that eligible workers are paid the correct new rates.
Any employee of a budget holder who provides care and support must be paid at one of these minimum rates. There is no opting out of paying minimum rates to your employees.
Employers can choose to pay their employees above the new rates – you cannot choose to pay below the new rate.
The new pay equity rates came into effect from 1 July 2017.
If you haven’t talked to your employees to work out what the correct rate will be according to their qualifications and/or experience, you can contact your host provider for help.
To assist you work out correct rates, download the following spreadsheet:
If you purchase payroll services from your host, they will rely on your instruction to make changes to pay rates. Paying an employee at the correct rate will depend on the length of time they have worked for you and their qualifications as at 30 June 2017. Please see the table below for the rates that apply. The rates apply to any support services delivered from 1 July 2017. The new pay rate must be that which is more favourable to the employee.
|Length of service||Qualifications*||Pay band||Min pay rate from 1 July 2017|
|<3 years OR||None||L0||$19.00|
|3-8 years OR||Level 2||L2||$20.00|
|8-12 years OR||Level 3||L3||$21.00|
|12+ years OR||Level 4||L4b||$23.50|
* Read more about the Qualifications Assessed for Equivalence.
If someone has been employed by an IF budget holder for 1 year and has a level 4 qualification, then they must be paid pay band L4b, $23.50 per hour. If someone has been employed by an IF budget holder for 7 years but has no qualifications, then they must be paid under pay band L2, $20.00 per hour.
All new eligible care and support workers from 1 July progress through the pay bands on the basis of obtaining qualifications only (e.g. no length of service is applicable).
An employer must take all reasonably practicable steps to ensure that a care and support worker is able to attain qualifications. If you need support around training support workers, please talk to your host provider.