Hundreds of thousands of aged care workers will be taking home more money each week on the back of the Fair Work Commission's decision to increase award wages.

"Aged care workers do an incredible job and they deserve every dollar of this pay rise that we're delivering," Treasurer Jim Chalmers said.

"This investment recognises the big contribution that aged care workers make to our economy and community and will help to create a bigger incentive for young Australians looking for a rewarding career, to pick aged care in the future."

Registered nursees on level 2, pay point 3 of the award – the most common level among registered nurses – will receive an extra $60.20 a week.

Added to the federal government's previous increases to aged care wages, they are receiving an extra $28,000

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