Have you heard about significant changes to pay rates and Awards across many the community, child care and health services sectors?
Over the past few months, we’ve received a growing number of questions from employers across the health, disability, community services and not-for-profit sectors wanting to understand what this means for their organisation, so you’re not alone.
Earlier this year, the Fair Work Commission’s Expert Panel for Pay Equity handed down a landmark decision as part of its Gender-based Undervaluation – Priority Awards Review. The review examines whether work performed under certain modern awards has historically been undervalued because it has predominantly been undertaken by women.
For now? No need to panic. While a number of decisions have now been issued, there is no immediate action required.
While the Fair Work Commission has made important decisions affecting several modern awards—including the SCHADS and Health Professionals and Support Services (HPSS) Awards—many of the practical details relating to implementation are still being worked through. For most employers, this is a case of staying informed and waiting for further guidance before making any changes.
In this article, we’ll explain what decisions have been made, which awards are affected, and what employers should expect as we move towards implementation dates in 2027.
The Fair Work Commission identified five priority awards for review:
The Pharmacy Award is the only award where final wage increases have already been determined and scheduled. The remaining awards are progressing through the Commission’s process, with further determinations and implementation guidance continuing to be released.
For organisations covered by the SCHADS Award, the Fair Work Commission issued its decision on 1 June 2026.
The Commission found that a number of classifications under the award have experienced gender-based undervaluation and that increases to minimum award wages are warranted. It also acknowledged that many roles in the sector require significant interpersonal skills, emotional labour and judgement that have historically been undervalued.
Importantly, the decision extends beyond pay rates. The Commission has also recognised the value of lived experience and cultural knowledge in certain roles, proposing that these factors be considered within the classification structure. This is particularly relevant for employers engaging employees who draw on their own life experiences or cultural expertise to support clients and communities.
The implementation of these changes will occur over time.
For employers in the disability sector, some changes are scheduled to commence from the first full pay period on or after 1 October 2026. However, the majority of SCHADS-related changes are not proposed to take effect until 1 October 2027, providing organisations with additional time to understand the impacts and prepare for implementation.
At this stage, employers should be aware that:
While these proposed changes are significant, there is still time. For now, the focus should be on understanding what has been decided, monitoring updates from the Fair Work Commission and planning ahead rather than taking immediate action.
The Fair Work Commission issued its decision in relation to the Health Professionals and Support Services (HPSS) Award on 24 December 2025.
The decision considered a broad range of classifications across the health and community sectors and found that a number of health professional and support services roles have been subject to gender-based undervaluation. In response, the Commission determined that increases to minimum award wages are appropriate for several classifications under the award.
This is particularly relevant for allied health providers, community health organisations and not-for-profit employers who engage employees under the HPSS Award, including disciplines such as psychology, occupational therapy and speech pathology.
Importantly, these changes are not immediate. The Fair Work Commission has indicated that implementation is intended to occur from the first full pay period on or after 1 October 2027, providing organisations with time to understand the changes and prepare accordingly.
At this stage, employers should be aware that:
For now, allied health and community health employers should treat this as an opportunity to become informed rather than an immediate compliance obligation. We will continue to monitor developments and provide updates as additional information becomes available.
While there has been considerable discussion about pay increases across the community and health sectors, the key takeaway for employers is that these changes are being implemented over an extended period.
At the time of writing, employers are still awaiting further clarity from the Fair Work Commission regarding the practical application of these changes, including classification impacts and payroll considerations.
For now, our advice is simple: stay informed, but don’t panic.
This is one of the most significant award reviews in recent years and it will have an impact across the care, health and community sectors. However, the Fair Work Commission has recognised the complexity of these changes and implementation is being phased and carefully considered.
We’ll continue to monitor developments from the Fair Work Commission and provide updates as more information becomes available.
Until then, treat this as exactly what it is—important information to be aware of, not an immediate compliance issue requiring urgent action.
As always, if you’re unsure which award applies to your employees or how future changes may affect your organisation, we’d be happy to help.
