Opposition Leader Anthony Albanese says the sector is in crisis, with the government neglecting workers by not proving enough rapid antigen tests and protective equipment.
"We know that aged care residents are sitting in bed without being showered, in some cases without being fed ... as a result of a crisis that could have been foreseen, and indeed was, by the prime minister and health minister," he said.
Labor government services spokesman Bill Shorten says the government needs to increase the base wage of aged care staff.
"Increase the base rate and the sugar hit wouldn't be necessary. The base rate is what has to go up otherwise we are going to struggle to attract people to the industry," he told the Nine Network.
"If you have to look after some of the most vulnerable people, some of whom might have challenging conditions in residential care, is $22 an hour before tax enough? I think it isn't."
President of the Health Services Union Gerard Hayes said if it wasn't so serious the announcement would be a joke.
"I don't say these things lightly. We have been down this path for four years now, we have gone through a pandemic which has exemplified all our greatest fears," he told Sky News.
Mr Hayes said if the prime minister was serious about change, he would support the application for a 25 per cent wage increase before the Fair Work Commission.
"People in aged care, their families, the community, are not so silly they fall for trinkets - we need a lot more than that," he said.
The government has been criticised for the timing of the announcement, with one payment of up to $400 due this month and the second coming in May, when the federal election is expected to be held.
Superannuation Minister Jane Hume defended the timing, saying the government has provided support to aged care workers throughout the pandemic.
"We provided the aged care workforce with a bonus payment back in 2020 in recognition of the increased work and demands on the time they faced because of the COVID-19 pandemic," she told the ABC.
"The pandemic has lasted longer than anticipated and this does exactly that."
The payments will be paid on a pro rata based on hours worked.
Staff providing care, food and cleaning services in government-subsidised facilities will be eligible as well as those in the federal home care scheme.
Senator Hume said a pay rise would "dramatically increase the cost of an aged care workforce".
"We want to make sure this is a sustainable system going into the future," she said.
More than 400 virus deaths this year have been in aged care facilities, amounting to about a third of more than 1160 overall fatalities.
NSW recorded a further 30 deaths on Tuesday and Victoria 34.
The deaths came among more than 12,800 and 11,300 new infections in the states respectively.
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