Thousands of workers across community health, disability care, and early education could soon benefit from substantial pay increases following a decision from the Fair Work Commission’s (FWC) Expert Panel in the gender-based undervaluation – priority awards review.
This decision, and others that may follow, could reshape how work is valued and paid across Australia.
The Expert Panel’s decision follows the 2022 Same Job, Same Pay reforms introduced by the Albanese Government that make gender equality a central consideration in setting modern award pay. These changes require the FWC to assess whether award minimum wages, particularly those in female-dominated sectors, reflect equal value for work regardless of gender.
The Expert Panel’s decision proposes substantial changes to how work is classified and paid under the following awards:
- Pharmacy Industry Award 2020 (Pharmacy Award);
- Health Professionals and Support Services Award 2020;
- Social, Community, Home Care and Disability Services Industry Award 2010;
- Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020; and
- Children’s Services Award 2010.
These awards cover a wide range of roles, including pharmacists, health professionals, social and community services employees, pathology collectors, home (disability) care employees, dental assistants and children’s services employees.
The Expert Panel found that many of these roles have been undervalued due to outdated assumptions about the nature of the work and the skills required, and that the existing classification structures often failed to reflect:
- the full range of required qualifications and experience;
- the complexity and responsibilities of the roles; and
- “invisible” skills, such as highly developed communication skills, empathy, organisation and patience.
14.1% staggered increase for pharmacists
To address this, the Expert Panel has determined that a total increase of 14.1% in minimum wage rates for pharmacists covered by the Pharmacy Award will be implemented in three equal phases from 30 June 2025, 30 June 2026 and 30 June 2027.
Employers covered by the Pharmacy Award should take proactive steps to prepare for the upcoming increases. This includes reviewing and updating payroll systems to ensure the new rates are correctly applied, incorporating the wage increases into their budget forecasts and revisiting employment contracts and remuneration frameworks to confirm they remain compliant with the award.
Other impacted modern awards
For the four other awards, the Expert Panel has outlined its provisional views on appropriate variations to remedy gender-based undervaluations, which include:
- reclassifying roles to ensure the classifications (and corresponding minimum rate of pay) more accurately capture the nature and value of the role and work performed;
- simplifying job classification structures to better reflect the complexity and responsibility of the work; and
- increasing the minimum rates of pay for certain roles.
The Expert Panel has invited further submissions on its provisional views before finalising any changes for the four remaining awards.
Impact for employers
If your organisation employs staff under any of the affected awards, you should:
- monitor the FWC process for final determinations;
- review your internal employment structures and budgets; and
- plan for wage increases and possible award reclassifications over the coming 12–24 months.
This is just the beginning. Sectors such as aged care, early childhood education, hospitality, cleaning, allied health, retail, cabin crew, and admin support may be reviewed as future waves of gender-based undervaluation cases are identified by unions. Employers in these industries should:
- stay informed about FWC developments in this space;
- conduct internal reviews to identify potentially undervalued roles; and
- seek legal advice in preparation for potential gender-based undervaluation reviews.
The FWC’s preliminary decision marks a significant shift in how award-based employment conditions are evaluated, placing gender equity and work value front and centre. While the initial focus is on five key awards, the broader implications are likely to influence pay structures across a wide range of industries.
The views expressed in this article are general in nature only and do not constitute legal advice. Please contact us if you require specific advice tailored to the needs of your organisation’s circumstances.