Direct care workers across Pennsylvania are seeing hourly wage increases of $1 to $5, bringing many closer to or above $15 per hour, thanks to strategic investments in Gov. Josh Shapiro’s 2025–26 budget, according to a news release. (The governor is pictured at the top of this article.)
The Pennsylvania Department of Human Services recently highlighted the impact of these investments as DHS Secretary Dr. Val Arkoosh met with DCWs to hear firsthand how higher wages and expanded benefits are improving their quality of life and financial stability.
The 2025–26 budget includes a $21 million investment to raise wages for DCWs who provide in-home services to older Pennsylvanians and adults with physical disabilities through the participant-directed model in Community HealthChoices. These wage increases are retroactive to January 1, 2026.
In addition to higher pay, the funding supports access to paid sick and personal leave and expands affordable insurance options for approximately 8,500 direct care workers. These workers are employed directly by the individuals they serve and often lack access to employer-sponsored benefits typically offered by larger organizations.
“Direct care workers spend their lives serving others, helping individuals receive the care they need in their homes and communities so they can live independently and with dignity,” said Arkoosh. “The Shapiro Administration is committed to supporting this essential workforce. These investments ensure workers can better support themselves and their families while continuing to provide critical care to Pennsylvanians.”
Direct care workers play a vital role in enabling older adults and individuals with physical disabilities to remain in their homes rather than moving to institutional settings. Through Medicaid-funded programs like Community HealthChoices, participants can hire and manage their own caregivers, ensuring personalized, consistent support.
Angela Engram, a direct care worker from Pittsburgh, recently met with Arkoosh and shared how the wage increases will ease financial pressures.
She described the challenges of low pay, including difficulty covering basic expenses and relying on food assistance, and noted that the increased wages will help her better manage essential costs and reduce financial stress.
Building on this progress, Shapiro’s proposed 2026–27 budget calls on the General Assembly to raise Pennsylvania’s minimum wage to $15 per hour beginning January 1, 2027. This proposal aims to strengthen the workforce, reduce employee turnover, and improve economic stability for working families.
Raising wages for nearly 61,000 workers who currently earn less than $15 per hour and rely on Medicaid is expected to reduce dependence on public assistance and generate approximately $80 million annually in new state revenue.
The Shapiro Administration remains committed to strengthening Pennsylvania’s workforce, supporting caregivers, and ensuring residents have access to high-quality care in their homes and communities.
For more information on the 2025–26 budget and the proposed 2026–27 budget, visit the Pennsylvania Department of Human Services website.
