The manager of a Newcastle nursing home says the federal government's decision to implement a 15 per cent pay rise for aged care workers will "absolutely" help the industry attract and retain staff.
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The facility manager at Groves House at Cardiff Heights, Arnold Tammekand, welcomed the government's confirmation of an $11.3 billion package in next week's budget for workers in the sector and said it would make the industry a more attractive career choice.
"It'll mean a huge difference to their lives, but the issues are more around staffing levels at the moment," he said.
"A lot of staff are getting, pay rates being one of the reasons. Just also the shortage of staff."
He said all aged care providers were suffering staff shortages.
"It's also in general hospital systems and teachers as well, the paramedics are in the same boat.
"The lack of staff is causing the discontentment.
"I had a friend of mine who actually went to work at Coles in the deli rather than being a registered nurse because she just couldn't stand the pressures of how much she had to do.
"Certainly the pay rise will ease those pains."
The pay rise, which comes into effect on July 1, follows a Fair Work Commission ruling that the government could not stagger the increase over two years.
The commission awarded the increase in November after the Health Services Union called for a 25 per cent rise.
Mr Tammekand said Christian Brothers Community Services, which operates Groves House, had given staff an interim pay rise until the 15 per cent increase arrives in July "to recognise staff for the work they do".
Some aged care workers already receive above-award wages and may not benefit from the new funding.
But registered nurses in the sector will receive up to $10,000 extra a year and personal care staff up to $7300.
The government subsidises the sector through aged care providers, who have committed to pass on the increased wage funding in full to staff.
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