PHILADELPHIA, PA — Thousands of direct care workers in Pennsylvania are seeing hourly pay increases of up to $5 following new state investments aimed at stabilizing a workforce critical to in-home care.
What This Means for You
- Direct care workers are receiving $1 to $5 hourly wage increases
- Raises support in-home care for seniors and people with disabilities
- Additional proposals could expand wage increases statewide
The Pennsylvania Department of Human Services said recent budget investments are raising wages for approximately 8,500 direct care workers who provide in-home services to older adults and individuals with physical disabilities.
Direct care workers assist with daily activities such as personal care, mobility, and household tasks, allowing individuals to live independently rather than in institutional settings.
Details of the Wage Increase
The state allocated $21,000,000 in its 2025–26 budget to fund the wage increases, which are retroactive to January 1, 2026.
The funding applies to workers participating in programs such as Community HealthChoices, the OBRA Waiver, and Act 150 — Medicaid-supported programs that provide long-term care services in home and community settings.
Officials said the investment also expands access to benefits, including paid sick or personal leave and more affordable health insurance options.
“By increasing wages and making benefits more accessible, we are helping to make sure that people stay in this profession,” said DHS Secretary Dr. Val Arkoosh.
Workforce and Care Impact
The increases are intended to address workforce shortages and reduce turnover in a field that supports individuals who rely on consistent, long-term care.
Under the participant-directed model, Medicaid recipients can hire and manage their own caregivers, giving them more control over their care arrangements.
Workers in this model are often employed directly by the individuals they assist and may not receive traditional employer-sponsored benefits.
Broader Policy Context
State officials said the wage increases are part of a broader effort to strengthen the caregiving workforce and improve access to in-home care services.
The governor’s proposed 2026–27 budget includes plans to maintain these investments and calls for raising the statewide minimum wage to $15 per hour beginning January 1, 2027.
Next Steps
Lawmakers will consider the proposed budget and wage policies in the coming months, which could determine whether additional increases and long-term funding for the program are approved.
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