Victorian Nurses and Midwives Secure 28.4% Pay Rise by 2027

Nurses and midwives in Victoria, Australia, will be receiving a significant wage increase of 28.4 percent by November 2027, according to a new agreement reached between their union and the Allan Labor government. The announcement comes after members of the Australian Nursing and Midwifery Federation (ANMF) engaged in industrial action for 51 days, including shutting down a quarter of hospital beds, to demand better pay and working conditions.

Despite the state government’s mounting debt, which is projected to reach a record $187.8 billion by 2027-28, the pay rise was deemed necessary to improve the healthcare system. However, this debt could potentially lead to budget cuts in the health sector, which could have a detrimental impact on already struggling hospitals.

Under the new agreement, all nurses, regardless of their classifications, will see their wages increase by 28.4 percent by 2027. For instance, the current hourly base rate for a graduate nurse is $34.17 (US$22.76), which will rise to $43.88 (US$29.23) by 2027. Similarly, clinical nurse specialists will experience an improvement in their hourly base rate from $50.23 to $64.49 by 2027.

In addition to the wage increase, the agreement introduces several changes to allowances, penalties, and terms and conditions for nurses and midwives. These changes include raising night shift penalties, increasing qualification allowances by 92 percent for permanent nurses and midwives, and implementing a change of ward allowance to prevent employers from using redeployment and casual workers as a rostering practice.

Another significant aspect of the agreement is the “right to disconnect,” which allows nurses and midwives to ignore calls and messages from employers outside working hours. While this provision has faced opposition from business groups at the federal level, who argue that it could hinder productivity and complicate operations, the Victorian government believes it will support the well-being and work-life balance of healthcare workers.

The agreement also includes improvements in parental leave, with the qualifying period reduced from six months to zero. Nurses and midwives will also have better access to flexible working arrangements. Furthermore, nurses and midwives from other states who relocate to Victoria will be recognized for personal leave and long service leave.

ANMF Secretary Lisa Fitzpatrick expressed satisfaction with the new agreement, stating that it aims to retain early career and experienced nurses and midwives, recruit new ones, and rebuild the health system. She emphasized the significance of the gender equity wage increase, as the nursing and midwifery workforce is predominantly female.

Victorian Premier Jacinta Allan acknowledged the deserving nature of the pay rise and improved conditions for nurses and midwives, highlighting that it would benefit all Victorians by contributing to a better health system. Minister for Health Mary-Anne Thomas described the pay rise as “once-in-a-generation,” emphasizing its role in strengthening and growing the healthcare workforce.

The agreement comes at a crucial time when Victoria’s healthcare system is facing significant challenges. Hospitals have implemented hiring freezes, reduced elective surgeries, and delayed new construction projects due to the strain on resources. The new deal is expected to alleviate some of these pressures and provide much-needed support to the healthcare sector.