Significant Award Wage and Classification Reforms Ahead for Employers in Female-Dominated Sectors
The Fair Work Commission (FWC) has handed down a major decision that will reshape wages and job classifications across five Awards in predominantly female-dominated industries.
These changes follow a review aimed at addressing gender-based undervaluation of work. The reforms are expected to contribute meaningfully to closing the gender pay gap in sectors where workers have historically been underpaid despite the complexity and value of their roles.
Affected Awards
The following Awards are set to undergo substantial changes to wage rates and classification structures:
- 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
What's Changing?
Employers should prepare for two primary changes:
- Significant increases to minimum Award wages
- Overhauls of classification structures to better align with the skill, responsibility, and qualifications required for the role.
These reforms will be rolled out progressively. The Pharmacy Award wage increases are confirmed and scheduled. All other suggested reforms remain in the provisional stage, with the FWC set to consult further before final determinations are made.
Summary of Proposed Changes by Award
Pharmacy Industry Award 2020
- A total increase of 14.1% to award base rates, implemented in three phases on 30 June 2025, 2026 and 2027.
Health Professionals and Support Services Award 2020
- New classification and wage structure for health professionals (AQF Level 7 with 12 months experience).
- Reclassification of pathology collectors and dental assistants within the support services stream.
Social, Community, Home Care and Disability Services Industry Award 2010
- Replace five existing classification structures with a single simplified framework, aligned with a Certificate III Caring Skills benchmark rate of $1269.80 per week.
Children’s Services Award 2010
- New classification structure aligned with Caring Skills benchmark rate.
- Phased implementation over five years, starting with a 5% wage increase from 1 August 2025.
Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020
- Dental assistants to be moved to the Health Worker structure (Levels 2–4).
- Dental/oral therapists to follow a structure mirroring the proposed HPSS Award for AQF Level 7 employees.
What Happens Next?
Stakeholders will have the opportunity to provide feedback on the provisional changes, including proposed timelines and phasing before the Awards are formally varied.
What Employers Should Do Now
To prepare effectively and ensure compliance, employers should:
Communicate
Employers should proactively communicate and advise employees of the new wage increases, to maintain transparency and fairness. While not all updates are finalised, transparency around the provisional nature of these reforms can help build trust and reduce confusion.
Review Pay and Employment Contracts
Conduct a thorough audit of current pay rates and employment agreements to ensure all employees are being paid – now or by the relevant implementation date – at or above the updated Award minimums. This is essential not only for compliance but also to mitigate the risk of underpayment claims and potential penalties.
Conduct Financial Impact Assessments and Review Enterprise Agreements
Evaluate the short and long term financial implications of the proposed wage increases, including impacts on budgeting, funding arrangements, and payroll forecasting. For employers with Enterprise Agreements, compare the updated Award rates to ensure the Agreement remains compliant, and prepare for potential adjustments in future bargaining rounds.
How can Mapien support your business?
Our consultants are continually monitoring the implementation of the amendments to the Fair Work Act, and their implications.
If you would like more information on the impact the Legislative reforms might have on your organisation, please contact us here and a Mapien Workplace Strategist will contact you.
