On 16 April 2025, an Expert Panel of the Fair Work Commission for pay equity in the care and community sector (the Panel) published its initial decision regarding the gender-based undervaluation for certain priority awards applying to the care and community sectors (the Review).
Background
The Review, initiated in June 2024, addresses concerns on the undervaluation of wages in feminised industries. While female participation in the workforce has increased over the last decade, the FWC is of the view that significant barriers to gender equality in employment persist.[1] The Review seeks to remedy potential undervaluation of work for gender-related reasons by varying employee classifications and minimum wage rates within relevant awards.
The Panel identified five priority awards where gender-based undervaluation has occurred:
- Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020 (ATSIHW Award)
- Children’s Services Award 2010 (CS Award)
- Health Professionals and Support Services Award 2020 (HPSS Award)
- Pharmacy Industry Award 2020
- Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award)
Key Changes
Pharmacy Industry Award 2020
The Panel has determined that to rectify the identified gender-based undervaluation, minimum wage rates for pharmacists, pharmacy interns and pharmacist managers covered by this Award will be increased by a total of 14.1%, implemented in three phases from 30 June 2025, 30 June 2026, and 30 June 2027.
The remaining priority awards
For the remaining four priority awards, the Panel set out its provisional views regarding pay increases and other variations to those awards, which are summarised below.
| Award | Affected Employees | Professional Views |
|---|---|---|
| HPSS Award | AQF Level 7-qualified health professional employees | To establish a new, simplified classification and minimum wage rate structure based on an alignment with the C1(a) benchmark rate identified in the Stage 3 Aged Care decision.[2] Up to 31.16% wage increase for psychologists and 29.91% for physiotherapists. |
| Pathology collectors | To include pathology collector as an indicative role in the Support Services employees structure to Levels 5, 6 and 7. Up to 10.9% wage increase. |
|
| Dental assistants | To include dental assistant as an indicative roles in the Support Services employees structure to Levels 1, 5, 6 and 7. Up to 9% wage increase. |
|
| SCHADS Award | Certificate III-qualified employees | To abolish the current five separate classification structures and implement a single, simplified classification structure based on an alignment with the ‘Caring Skills’ benchmark rate identified in the Stage 3 Aged Care decision.[3] To revoke the Equal Remuneration Order (ERO),[4] as the proposed classification structure would ensure equal remuneration for work of equal or comparable value, making the 2012 ERO redundant. |
| ATSIHW Award | Dental assistants | To abolish the current classification structure and place dental assistants within the existing Health Worker classification structure at Levels 2, 3 and 4. Up to 35.23% wage increase. |
| Dental/oral therapists | To have a new classification structure mirroring that proposed for the HPSS Award for AQF Level 7-qualified employees. Up to 35.23% wage increase. |
|
| CS Award | Certificate III-qualified children’s services employees | To have a new and simplified classification structure based on an alignment with the ‘Caring Skills’ benchmark rate.[5] This is proposed to be phased in over a period of five years, with a first instalment consisting of a 5% wage increase to be operative from 1 August 2025. Up to 23% wage increase. |
Additionally, two applications made by the Australian Services Union and joint unions for interim variations to the SCHADS Award were dismissed by the Panel. The applications sought to vary the definition of ‘home care sector’ and other clauses of the SCHADS Award.
What’s next?
The determined and proposed variations to priority awards will likely carry significant cost implications to employers, so it is important to plan ahead for these changes. In sectors reliant on Commonwealth government funding, employers’ capacity to implement these changes may depend on corresponding adjustments to that funding.
While the wage increases for certain employees under the Pharmacy Industry Award 2020 will increase from 30 June 2025, the changes to the remaining four priority awards are not yet finalised and may be altered.
The Panel has invited responses to its provisional views from interested parties, meaning that industry representatives will be able to make submissions on each before any changes are confirmed. HR Legal will provide further updates as to the provisional views as they come to light.
If you have queries about how the incoming changes might affect your business or organisation, it is crucial to seek advice about managing those impacts proactively as they may have financial and legal implications, potentially exposing some employers to underpayments issues should the changes (once confirmed) not be implemented.
[1] Annual Wage Review 2023-24 at [130]-[131].
[2] Decision [2024] FWCFB 150 at [204].
[3] Ibid [170] & [172].
[4] MA000100 PR525485.
[5] Decision [2024] FWCFB 150 at [170] & [172].
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This article was produced by HR Legal. It is intended to provide general information only in summary format on legal issues. It does not constitute legal advice, and should not be relied on as such.
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