WATCH: Philadelphia Direct Care Worker Discusses Impact of Pay Increases in Governor Shapiro’s 2025-26 Budget Bringing Wages Closer to $15 an Hour | Department of Human[...]

"I'm very happy about this win, and I'm so thankful for DHS seeing us, and listening to us, and realizing that we're real people…" - Khebed Allen, Direct Care Worker

Click above to watch: Khebed Allen discusses why she loves caring for other people and how Governor Shapiro's budget investments are helping direct care workers like her.

Philadelphia, PA - Direct care workers (DCWs) are now seeing an increase of $1-$5 per hour from their current hourly wage, bringing them above or closer to a $15 hourly wage because of the investments made in Governor Josh Shapiro's 2025-26 Budget. Pennsylvania Department of Human Services (PA DHS) Secretary Dr. Val Arkoosh recently met with DCWs to hear more about how these investments will have a positive effect on their lives.

The Governor's budget invested $21 million to increase wages, retroactive to January 1, 2026, for DCWs who provide in-home services to adults with physical disabilities and older Pennsylvanians in the participant-directed model through Community HealthChoices, the OBRA Waiver and the Act 150 programs. The investment includes increased wages, recognizes time off for sick or personal leave, and increases access to affordable insurance for approximately 8,500 workers who are employed directly by the individual they care for and therefore do not have employer-sponsored benefits offered by larger employers. Governor Shapiro's proposed 2026-27 budget sustains the new investments in this critical workforce.

"Direct care workers are vital to making sure that older Pennsylvanians and people with disabilities can live as independently as possible and with dignity in a setting that they choose. While these professionals are giving so much of themselves to care for others, we must support them, and the investments in Governor Shapiro's 2025-26 budget reflect that," said Secretary Arkoosh. "By increasing wages and making benefits more accessible, we are helping to make sure that people stay in this profession. Not only does that provide consistency for the people DCWs are caring for, but it helps stabilize the workforce in the long-term and ensures that more Pennsylvanians are getting the care they need when they need it."

DCWs are a lifeline for individuals who require assistance to live independently and families that may not be able to provide their loved ones with 24/7 care. Through Medicaid, older Pennsylvanians and adults with physical disabilities are able to get assistance to live with more independence in their own home rather than a group or facility setting, and through the "participant-directed model," and Medicaid recipients who need long-term care can choose to hire and manage their own DCWs directly to help with the services, supports, and daily assistance they need to live safely in their homes.

Khebed Allen is a DCW from Philadelphia who recently met with Secretary Arkoosh to talk about how increased wages would make a difference in her life.

"Taking care of [my mother-in-law] is everything to me, and having this win and a raise means I'll be able to cut back on some of my hours…because I'm doing another job," said Allen. "I'm very happy about this win, and I'm so thankful for DHS seeing us, and listening to us, and realizing that we're real people…[The people we care for] actually mean the world to us, and we want to be there to take care of them. And so being able to take care of ourselves as well is very important."

To build on the momentum of these pay raises in the 2025-26 budget, Governor Shapiro's proposed 2026-27 budget once again calls on the General Assembly to raise Pennsylvania's minimum wage to $15 an hour beginning January 1, 2027. This commonsense reform would boost consumer spending, reduce turnover for employers, and improve workers' health and economic stability while also delivering significant savings for taxpayers.

By raising wages for nearly 61,000 workers who currently rely on Medicaid and earn less than $15 an hour, the Commonwealth would reduce reliance on public assistance, saving taxpayer resources. In addition, higher wages would generate roughly $80 million per year in new revenue, strengthening Pennsylvania's fiscal position while helping working families get ahead.

Learn more about Governor Shapiro's 2025-26 budget investments and his continued commitment to strengthening Pennsylvania through the proposed 2026-27 budget.

# # #