The federal government has backed in a pay rise for aged care workers, outlining support for an increase in the minimum wage in the sector to the Fair Work Commission.
While the submission does not specify an exact amount for how much wages should rise, the government said it supported a boost.
"The average care requirements for aged care recipients in both residential and in-home care have increased in acuity and complexity over time," the submission said.
"This further contributes to the work value of aged care workers being significantly higher than the modern awards currently reflect."
Unions have called for a 25 per cent pay rise for workers.
The government submission said such an increase to wages could boost the labour supply in the sector by up to 10 per cent over the next five years.
However, Treasury has estimated a 25 per cent rise would increase wages across the economy by less than one per cent, which could lead to a flow-on effect for similar areas.
"In the current economic environment of above-target inflation and persistent global price shocks, there would be risks to inflation expectations if similar wage rises are demanded in associated industries," the submission said.
Workplace Relations Minister Tony Burke said the call for higher wages for workers was delivering on the findings of the aged care royal commission.
"Aged care work is hard work. The pandemic made it even harder," he said in a statement.
"Right now there is no doubt their work is undervalued. We need to change that."
Labor minister Tanya Plibersek said some aged care workers were earning as little as $22 an hour.
"You can literally earn more stacking shelves at a supermarket than caring for some of our most vulnerable Australians," she told the Seven Network.
Aged Care Minister Anika Wells said the pay rise would help to close the gender pay gap.
"One of the main causes of the gender pay gap is low pay and poor conditions in care sectors like aged care, where the majority of workers are women," she said.
"Increasing wages in aged care is essential to ensuring that men and women are paid equally."
Opposition Leader Peter Dutton said he supported a lift in aged care worker wages.
"The government promised at the last election that they would fix the situation in aged care, and we want to make sure that they're not making a bad situation worse," he told reporters in Brisbane.
"But we certainly support an increase in the pay for aged care workers."
Asked what the new level of pay should be, he said: "That's an issue for the Fair Work Commission".
Opposition finance spokeswoman Jane Hume said the government's proposed wage increases needed to be reasonable.
"We know that aged care workers are some of the lowest paid workers in the land, but we also want to make sure that if they do get a pay rise, the system is sustainable," she told Sky News.
"That the aged cared system can stand up under the weight of that increased cost to their businesses."
Mr Burke said he was "stunned" at the comments from Senator Hume.
"It's as though the royal commission never happened," he told reporters in Canberra.
"We have an area of serious neglect, where getting more people into the workforce is a critical part of that. That's the starting point."
Australian Associated Press
