Aged care workers deserve higher wages, but who will pay?

The decision handed down by the Fair Work Commission entitles direct care workers, catering, and recreation and lifestyle workers under the aged care award to a 15 per cent pay rise from June 30.

Executive manager of business services at the Forrest Centre Anton Reyment said the changes were well deserved and overdue.

"Aged care workers deserve this pay increase," Mr Reyment said

"What they do is important work, hard work. This increase recognises the value of that work, finally, and we're very pleased that the decision has come out."

Although the federal government supported the sector's case for a wage rise, their intent was to increase the aged care wage 10 per cent from July 2, adding the remaining five next year.

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However, the Fair Work Commission has specified the full increase should take place on June 30, leaving some in the industry with concerns about who will pay for the rise in costs to aged care providers.

Treasurer Jim Chalmers suggested in a radio interview on Wednesday he would "have to find room in the budget" to allow for the decision.

Mr Reyment said he welcomed the treasurer's comments, and that it was essential the government fully fund the increase or else risk more aged care facilities closing.

"Aged care is a government service, and they have an obligation to make sure whoever they are contracting it out to has the means of completely.

"When they do that, they are also responsible for making sure it's funded appropriately and not less that cost.

"With independent analysis showing 7 in 10 providers are already operating at a loss, the government must fulfil it's obligation to fully fund the decision."

Heath Services Union president Gerard Hayes described the decision as "an important step forward", but expressed concerns about certain categories of employee missing out.

"This decision will include more classifications, and we will continue to push to have the entire aged care workforce covered," Mr Hayes said.

Mr Reyment similarly expressed how vital the role of receptionist, cleaners and administrative staff were in the aged care sector, suggesting that if their wages were not also increased, the sector would continue to suffer from staff shortages, and people performing multiple roles.

"We we know that yeah nurses provide direct care, and it's very important, but we also know that cleaners provide essential services and essential social interaction with the residents," he said.

"The work the admin staff do, whether they're at reception greeting the residents and their visitors, or they're in the back office processing their fees and charges and payments, are very important to make the service deliverable."

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