You’re almost ready to work with a new client. You’ve done the interview, visited the home and discussed the responsibilities you’ll take on. There’s just one more thing: the client wants to know how much you’ll charge for your at-home aged care support services.
Figuring out what you should be paid isn’t an exact science. There are a lot of factors that can affect your rate, including where you live, your credentials and what duties you’re being asked to take on. You also don’t want to forget about travel time and extra tasks, like caring for pets, that might increase the workload and warrant additional compensation. You want to be respectful of your client’s budget, but you also want to earn a fair rate for the care you provide.
Before you decide what to charge per hour, here are some things to think about.
What to consider when determining your pay
When you’re deciding how much you should charge for your at-home care services, start by taking a closer look at what other carers charge, how much experience or training you have and the level of care you’ll be providing.
1. Average rates for at-home aged care support workers in your area
According to Fairwork, the base hourly rate for an entry-level aged care worker is $21.62, while a more experienced worker is able to earn $26.26 an hour. And while weekend rates, shift loading and public holiday loading are added on top of that, wages in the Australian care sector are widely criticised for being too low. The Health Services Union and the Australian Nursing and Midwifery Federation are currently pushing for a substantial, but urgently needed, pay rise of 25% for care workers. Nevertheless, it’s worth bearing in mind that these are the award rates for workers in residential care facilities. Freelance aged care workers have a bit more freedom and can likely expect to charge slightly more, depending on a few factors.
2. Your skills and experience
As with other positions, carers with more education and years in the industry tend to charge more for their services than their less experienced counterparts.
Because some older adults require more advanced care, having certain certifications or licences can put you in high demand, especially when people are expecting to need more assistance as they get older. Qualifications that might warrant higher pay can include:
- Registered nursing qualifications
- Certificate IV in Ageing Support
- Graduate diplomas and bachelor’s degrees. These can specialise in a variety of areas including dementia care and palliative care
You may also need to hold a first aid certificate or an Australian Police Check. While these aren’t free, they are tax deductible.
3. Level and type of care you’ll be providing
At-home aged-care workers provide a wide range of services, from simple companion care to fairly involved medical care. Generally speaking, the more you’re asked to do and the more complex the tasks, the more you can expect to earn.
Individuals with dementia or a history of stroke, or those needing specialised medical equipment, for example, tend to require a more complex level of care and that translates to higher rates for the carer responsible. Carers are also well advised to discuss how pay rates will adjust as these needs change over time.
Another thing to consider is whether you’ll be caring for a couple, rather than an individual. Caring for two people will be more time-intensive than caring for one – so this should be reflected in your rates.
4. Other benefits or compensation you might receive
What you charge on an hourly basis might not be the only way you’re compensated for your aged care services. Some families might also provide benefits and perks in addition to your standard pay rate.
If you’re a full- or part-time employee, for example, you’re entitled to statutory holiday – and leave days can be a huge non-monetary perk of a job. As an employee, you’ll also be eligible for pension contributions and sick pay.
Alternatively, if you’re self-employed, you benefit from all the flexibility that comes with it, including variety in your work and organising your working hours around your own commitments. It’s worth bearing the benefits and convenience of a job in mind when assessing how much to charge.
5. Overhead costs
Your rate as an aged care support worker should cover more than just your time. You may have additional overhead costs, such as travel and equipment. Consider how much time you spend travelling to and from your place of work and how much this costs. If you’re expected to shuttle the individual you’re caring for around as well, for example to and from appointments, consider asking for a mileage reimbursement.
There may also be equipment you require when providing your care, like PPE or tools and items you bring with you, such as stacking steps or pill boxes. Make sure your fee either covers sourcing such items, or that you have a clear way of ensuring these expenses are covered by your employer.
6. Additional services
While every family and situation is slightly different, the rate charged by at-home aged care support workers generally includes all the basic tasks needed to help an individual live in their home, including prepping meals, managing medications, providing assistance while bathing, running errands and doing light housekeeping.
If you’re asked to take on additional responsibilities above and beyond what’s needed to care for the individual (or, in some cases, the couple), those tasks might warrant asking for a little extra pay. Some examples of additional services include caring for pets, traveling with the individual on trips or accompanying them to special events.
What you should ask for these responsibilities might differ based on the added workload and inconvenience. How much extra carers charge for pet care will vary from one case to the next, for example. Are you putting out food for a cuddly cocker spaniel? Or taking a Rottweiler out four times a day and cleaning up after it? Be realistic about what you’re being asked to do, and how much extra time and effort it requires.
Know the bare minimum you’re required to be paid
Families always want experienced, high-quality care for their loved ones, and budgets are often tight. All the same, you need to make sure the fee you’re being paid reflects your needs – and the legal requirements. The minimum wage – sometimes referred to as the “National Minimum Wage” – as of 1 July 2021 is $20.33 per hour in Australia.This is reviewed yearly by the Fair Work Commission.
Know how much you need to make a living
While the minimum wage is a requirement, experts agree that for many people, it not enough to live on. The wage workers actually need to make ends meet and support their families is referred to as the living wage.
It’s helpful to know the minimum wage so you can figure out if it’s going to be enough to cover your own personal costs of living and lifestyle. The tools below can show you the estimated pay rates for aged care workers and help you calculate your own salary requirements:
- Look up the average at-home aged care support worker rates for your area
- Check out this budget planner from moneysmart.gov.au to find out how much you should realistically be charging to meet your needs
When to ask for more money
One of the biggest mistakes at-home aged care workers make when setting their rates is not discussing wage increases ahead of time. Some families might not realise that carers should receive wage increases, just like employees in other sectors do. But those periodic increases in pay are important in order for carers to keep up with rising rent prices and other costs of living.
Aged care support workers would be well advised to include a schedule for wage increases in the original carer contract, including pinning down a minimum rate increase – such as increases in line with inflation. Suggesting a range (rather than a fixed amount) for the wage increase gives the family leeway to increase it based on performance.
There’s no perfect formula for calculating a fair pay rate for your aged care services, but thinking through some of these variables can help get you closer to a pay rate that’s fair for everyone involved.
Don’t forget about tax
Remember that your aged care worker rate is how much you’ll be paid before tax. You can use this income tax calculator to work out how much money you will actually have in your pocket after tax and the Medicare levy are deducted – which is useful to know when calculating your rates.
