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Pay equity for vocational and disability care and support workers

The MSD/MVCOT Settlement aligns the pay rates of disability care and support workers with the pay rates of workers carrying out similar work and covered by the TerraNova Settlement.

The disability care and support workers covered by this agreement provide personal care and support including help to wash, dress and eat, help with the laundry, housework and shopping, or help getting to appointments.

The Ministries want to achieve a better paid, more stable and highly trained workforce, resulting in higher quality and more consistent care for clients.

The Ministries will fund employers for the pay increases through their contracts and will also help fund and require employers to provide training.

Pay equity for vocational and disability workers fact sheet

Estimation Phase

Payments to providers of care & support services for the first half of this financial year (June to December) have been made based on an estimation process. As part of this process, an estimator tool was available on this website.

The estimation phase for Pay Equity Settlement is now complete and the wash-up phase requiring payroll data is now in place.

There are two different processes for the wash-up depending on whether or not a provider of care & support services receives funding from the Ministry of Health (MoH) for the equity settlement.

  1. Providers with both MoH and MSD contracts must submit their wash-up return for all of their staff eligible for pay equity settlement through MoH, using the MoH wash-up process.
  2. Providers who do not have MoH contracts must submit their wash-up return directly to MSD, using the MSD wash-up process.

Wash-up Phase - Providers who have contracts with the Ministry of Health

To minimize workload for providers, MoH and MSD have a Memorandum of Understanding (MOU) which facilitates the sharing of information between ministries. This MOU is solely for the purpose of the pay equity settlement.

Providers who have contracts with MoH as well as with MSD will submit their payroll information for ALL of their eligible staff to MoH.

  • Please refer to Ministry of Health Wash-up data colletion for details of this process
  • MSD and MVCOT contract numbers can be selected in the MoH wash-up tool
  • MoH will provide MSD with the wash-up return information relating to MSD and MVCOT contracts
  • MSD will advise providers of the amount to be invoiced for the Dec / Jan / Feb quarter and this invoice should be sent to payequity_implementation@msd.govt.nz

Wash-up Phase – Providers who do not have contracts with Ministry of Health

MSD is implementing a separate wash-up process for providers of care & support services who do not receive any funding for pay equity through MoH.

  • Providers who have received payments from MSD for the first two quarters of this financial year based on an estimate will be sent a password protected spreadsheet for the wash-up phase
  • The wash-up spreadsheet will be pre-populated with the name of the provider and their eligible contracts
  • When completed, this spreadsheet should be sent as an attachment to
  • payequity_implementation@msd.govt.nz. This is a secure process as the spread sheet is password protected

Please refer to these guidelines and FAQs for further information. If you have queries which are not dealt with in these documents please email us on payequity_implementation@msd.govt.nz.

Background

The Ministry of Social Development (MSD) and the Ministry for Vulnerable Children Oranga Tamariki (MVCOT) have reached a landmark agreement with unions to fund significant pay increases and more training for about 1700 vocational and disability care and support workers.

The MSD/MVCOT Settlement addresses historical pay equity disparities in line with what was recently achieved for care and support workers in the TerraNova agreement.

In April 2017 Government settled the TerraNova pay equity claim. The $2.048 billion agreement led to a change in wage relativities to be phased in over five years.

The agreement was the result of a case that successfully argued a caregiver’s pay is less than would be paid to a male with the same skill set in a different occupation, because caregivers are predominantly female.

This latest agreement will affect contracts for around 300 services accessed by about 24,500 people and children with disabilities, at a projected cost of $55.8 million over five years.

Wage rates for disability care and support workers will increase in each of the next five years, based on qualifications for new staff and transition arrangements for existing staff who don’t have qualifications.

The Ministries have been working with E tū Union and the Public Service Association to deliver on a commitment that their contracted disability care and support workforce would be covered by terms consistent with the Terranova Agreement if the unions agreed to forgo back claims.

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