If you work in health, care, education, or community services, chances are you’ve heard a buzz about recent Fair Work Commission (FWC) updates. And if you haven’t—well, listen up. There are some big changes coming that are set to reshape how pay is structured in a series of female-dominated industries across Australia.
Let’s break it down in plain English.
What’s actually happening?
In a landmark decision, the Fair Work Commission took a good, hard look at how wages are set in certain industries—and found some pretty glaring inequalities. Turns out, awards in five major sectors (including early childhood education, pharmacy, NDIS, psychology, and the broader health and community services space) haven’t been recognising the true value of the work being done. And yes, gender plays a big part in that.
Historically, work traditionally done by women—like care work—has been undervalued. Why? Well, back in the day, wages were based on outdated ideas like “men are the breadwinners” and “women just supplement the household income.” Fast forward to now, and those old assumptions have left a legacy of lower pay in industries where women make up most of the workforce.
Now, thanks to some updates to the Fair Work Act in 2022 (which made gender equity a formal consideration in wage decisions), the Commission is doing something about it.
The result? Higher minimum wages + classification shake-ups.
Here’s the short version:
- Award wages are going up in five major sectors (including the SCHADS Award).
- Classifications are getting a makeover to better match the actual work being done.
- The changes are aimed at closing the gender pay gap—especially where awards are still the main way people get paid.
One standout example is the SCHADS Award (that’s the Social, Community, Home Care and Disability Services Industry Award 2010). The Commission found that wages in this award just don’t reflect the value of the work—and a big part of that is down to gender-based undervaluation.
What’s changing in SCHADS? (NB: still in proposal stage, not yet finalised)
The Commission is proposing a full overhaul of the SCHADS Award’s classification and pay structure. That includes:
- A single, unified classification structure—no more separate schedules for different types of work.
- New pay rates based on qualifications and experience (like Cert III, Cert IV, diplomas, degrees, etc.).
- “Lived experience” counts—finally recognising the value of experience gained outside formal education, which is huge in care-based roles.
- Annual increments? Gone. Instead, progression will depend more on qualifications and duties.
And here’s a big one—the Commission wants to revoke the Equal Remuneration Order (ERO). Why? Because the new rates are designed to eliminate gender-based undervaluation, making the ERO redundant.
What does this mean if you’re an employer?
If you’re in one of the affected industries, this is more than just a pay rise—it’s a chance (and a requirement) to revisit your payroll, contracts, job classifications, and even enterprise agreements.
Here’s a quick to-do list:
- Figure out if you’re affected. Is your business covered by one of the updated (or soon to be updated) awards?
- Pharmacy Industry Award 2020
- Health Professionals and Support Services Award 2020
- Social, Community, Home Care and Disability Services Industry Award 2010
- Children’s Services Award 2010
- Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020
- Check for both pay rate AND classification changes. One without the other won’t be enough.
- Prep your payroll systems. Staggered rollouts mean you need to stay on top of key dates.
- Review job descriptions. Make sure they line up with the new classifications—this isn’t a “set and forget” situation.
- Communicate early and clearly. Especially if some employees see bigger changes than others. Transparency is your friend here.
And remember: incorrect classifications or failure to meet new minimums could open the door to penalties or legal claims (like underpayment or breach of contract). So it’s worth getting this right from the get-go.
So, what now?
Some of these changes—like the pharmacy award updates—are already in motion. Others (like SCHADS) are still in the proposal phase, with the Commission actively seeking feedback. That means there’s still room to shape how these reforms are rolled out.
If you’re unsure about how this might impact your team or workplace, now’s the time to get advice. Whether you’re in HR, a business owner, or a worker in the sector, staying across these reforms is essential.
At the end of the day, this is about fairness—and finally recognising the value of work that’s been underpaid for far too long.
