The implementation of the pay equity settlement for residential aged care has been characterised by “overs and unders”, or as many providers term, “winners and losers” – the averaging mechanism has meant that some providers will receive pay equity funding that more than covers their increased wage costs, while others will face a funding shortfall.

INsite is in the process of investigating the extent to which “overs” are over-funded and “unders” are under-funded.

The New Zealand Aged Care Association says it is continuing to work through possible solutions for those providers negatively impacted by the pay equity settlement, however it encourages those who are facing sustainability issues to discuss their situation with their District Health Board.

One provider to do so is Glenbrook Rest Home in Waiuku. Owner Peter Mathyssen has requested assistance from Counties Manukau DHB, but is still waiting on a response to his query, sent 18th July. He has also invited the CMDHB’s Health of Older People’s programme manager to visit his facility to witness the care provided and to discuss its sustainability given the pressures of the pay equity settlement.

The Ministry of Health has developed a provider level tool, based on the Workforce Translation Tool, that can be used to aid these discussions about sustainability between DHBs and providers. This tool will allow the DHB to update any information that has changed since the original Workforce Transition Tool was submitted in early June, such as changes with international nursing qualifications.

If you can assist with INsite’s investigation into the extent to which “overs” have been over-funded and “unders” under-funded as a result of the pay equity settlement, please get in touch:


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