The proposed $1.2bn lift to aged care workers wages has been rejected by nearly half of the facilities operated by the sector’s largest non-profit organisation, Catholic Health Australia (CHA).

The deal required aged care providers to embrace new workplace relations and contribute toward annual pay rises over five years of up to 12.6%.

United Voice, the Australian Nurses Federation and the Health Services Union had all applauded the government offer.

Critics felt it ushered in an era of dual class workers with organisations that could afford to sign up to the deal, and those that couldn’t.

The Government maintains that, despite CHA’s reticence, the majority of aged care providers will sign on.

Meanwhile, CHA’s CE Martin Laverty (pictured) said about 40 percent of his members would either not sign, or were unlikely to do so.

"By not fully funding proposed pay rises and inserting industrial requirements into the Workforce Compact, some aged-care providers are now saying they will not sign on," Mr Laverty said. "This was always likely to be the outcome."