Pay Increases Beyond July: Health and Community Sector Awards
"The Fair Work Commission has found that some roles under the Health Professionals and SCHADS Awards have been undervalued due to gender. This means extra wage increases are coming—on top of the usual 1 July changes."
Significant Pay Increases Ahead for Care and Community Sector Awards
The Fair Work Commission has handed down a landmark decision that will impact many employers in the care and community sectors.
It found that certain roles covered by five modern awards—including the Health Professionals and Support Services Award 2020 and the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award)—have been subject to gender-based undervaluation. As a result, minimum pay rates under these awards will increase, on top of the usual 1 July annual wage review.
Why This Matters
If your business is covered by either the Health Professionals and Support Services Award 2020 or the SCHADS Award, this decision has major implications for:
Workforce planning and budgeting
Payroll systems and obligations
Award compliance and above-Award payments
The changes are being phased in, but they represent a significant shift in how work in these predominantly female industries is being valued.
👉 For full details, you can read the Fair Work Commission's summary of the decision here.
What Is Gender-Based Undervaluation?
The Commission has determined that minimum rates in certain awards have been historically set too low because the roles are largely performed by women. This undervaluation stems from outdated views about the value of ‘feminised’ work compared to male-dominated industries.
The recent changes to the Fair Work Act require the Commission to take gender equality into account when setting and reviewing modern awards. This has prompted a review of awards where female workers make up the majority—especially in the care and community sectors.
What Roles Are Affected?
While the exact increases and implementation timelines are still being finalised, the Commission has formed a provisional view that the following roles are undervalued:
Under the Health Professionals and Support Services Award 2020:
Health professionals
Pathology collectors
Dental assistants
Under the SCHADS Award:
Social and community services employees
Crisis accommodation employees
Home care workers in disability services
What Can Employers Do Now?
While specific pay increases and implementation dates are still to be confirmed, employers can start preparing by:
Staying informed – Monitor Fair Work Commission updates and ensure someone in your organisation is across upcoming announcements.
Understanding coverage – Review which roles in your organisation are covered by the Health Professionals or SCHADS Awards and may be affected by the decision.
Budgeting and scenario planning – Begin considering the potential financial impact of additional wage increases above the standard annual review. Factor in possible increases over a multi-year period.
Reviewing contracts and above-Award arrangements – For employees paid above Award, be aware that previously compliant rates may need to be adjusted depending on the eventual increases.
While there is no immediate action required, being proactive now will help avoid last-minute surprises once the changes are finalised.
Need further support?
If your business needs support implementing these changes or you have questions, please reach out to discuss or Book a 15 minute meeting with me here.
