# Labour fiscal plan promises care worker pay rise

> Labour pledges $2.5bn pay rise for 65,000 care workers within fiscal plan.
- Title: Labour fiscal plan promises care worker pay rise · RNZ
- Summary: Labour pledges $2.5bn pay rise for 65,000 care workers within fiscal plan. Labour commits to $2.5 billion over four years for care and support workers' pay…
- Keywords: labour, care workers, pay rise, fiscal plan, new zealand, budget 2026, obegal, public sector cuts, politics, news, fiscal, plan
- Source: RNZ — https://rnz.co.nz/news/politics_election-2026/1718141/labour-releases-its-fiscal-plan-promises-pay-rise-for-care-and-social-workers
- Author: RNZ | Te Reo Irirangi o Aotearoa
- Published: 2026-10-04T03:48:32+00:00
- Read time: 1 min
- Topics: labour, care workers, pay rise, fiscal plan, new zealand, budget 2026, obegal, public sector cuts, politics, news
## Labour releases fiscal plan
Labour has released its long-awaited fiscal plan saying every election promise is paid for.
## Care workers get immediate pay rise
Labour promises immediate pay rise to 65,000 care and support workers costing $2.5 billion over four years.
## Operating allowances maintained
Finance spokesperson Barbara Edmonds says Labour will keep operating allowances at $2.4 billion set by coalition government in Budget 2026.
## Pay equity legislation restoration
Labour confirms it will restore pay equity legislation in first 100 days with transitional rules for ongoing claims.
## Unallocated fiscal headroom
Labour has $10 billion unallocated headroom to fund policies without increasing operating allowances.
## Public sector cuts reversed
Labour will reverse half of first tranche public sector cuts and fully reverse second tranche cuts.
## National government criticized
Labour leader Chris Hipkins says National has failed to grow economy or balance books while unemployment rises.
## Fiscal plan fully costed
Edmonds states every election commitment Labour made is fully costed and fully funded with room for future responses.
## Key takeaway

Labour commits to $2.5 billion over four years for care and support workers' pay rise while maintaining existing operating allowances at $2.4 billion.