- Published
Big changes are coming for some of Australia’s most underpaid workers, especially women, following a key decision by the Fair Work Commission on 16 April 2025. The Commission’s ‘Gender Undervaluation – Priority Awards Review’ determined that roles in female-dominated sectors have been undervalued due to historical gender assumptions. The review now demands changes to minimum award wages to better reflect the true value of this work.
How Did We Get Here?
The review stems from the Fair Work Act 2009 changes made in late 2022 under the Secure Jobs, Better Pay reforms. These reforms require the Commission to consider gender equality when setting award wages and ensure that work traditionally done by women isn’t undervalued.
The Commission’s prior work, including the ‘Aged Care Work Value Case’ and ‘Annual Wage Review 2023-24’, found that pay outcomes in female-dominated industries were historically shaped by gender bias. On 3 June 2024, the Commission flagged a list of roles requiring urgent review.
Which Jobs and Awards Were Reviewed?
The Fair Work Commission identified the following occupations as priority areas likely impacted by gender undervaluation:
- Child carers
- Disability support workers
- Medical technicians
- Dental assistants
- Psychologists
- Pharmacists
These roles fall under the following modern awards:
- Children’s Services Award 2010
- Social, Community, Home Care and Disability Services Industry Award 2020 (SCHADS)
- Health Professionals and Support Services Award 2020 (HPSS)
- Pharmacy Industry Award 2020
- Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020 (ATSI)
What the Commission Found
On 16 April 2025, the Commission confirmed that gender-based undervaluation has impacted several awards. Key outcomes include:
- Pharmacists under the Pharmacy Industry Award 2020 will see a 14.1% wage increase, phased over three years starting 30 June 2025.
- Childcare workers under the Children’s Services Award 2010 are set for increases of up to 27.8%, with the first 5% starting 1 August 2025.
- Workers under the SCHADS, HPSS, and ATSI awards received provisional findings, with further decisions expected following further consultation with key parties. These are likely to be largely changes to classification structures.
The Commission stated that these increases are based on “work value,” not just fairness. The roles have always been worth more than the minimum award rate, now it’s time for wages to reflect that.
What Happens Next?
Employers in affected industries should begin preparing for wage increases and stay updated on the timeline for changes. Be aware that there will likely be annual Award wage increases from 1 July 2025 to account for in addition to these changes.
What Employers Should Do Now
If your business employs staff under one of the affected awards, take these steps:
- Review which classifications apply to your team
- Review all salary and flat rate arrangements
- Start budgeting for the phased-in increases
- Keep an eye out for changes to classification structures
- Ensure your payroll system can handle the updates
- Consider any flow-on effects for other roles in your business
- Ensure you are familiar with the new wage theft laws.
Award Not Listed, Does It Still Affect Your Company?
Even if your award isn’t part of this decision, it’s still important to stay informed. The Commission has indicated that other female-dominated sectors may be reviewed in the future, setting a precedent for how gender-based undervaluation will be addressed.
Need Support?
If you need help preparing for these changes or understanding how they impact your business, contact us. Our team is here to help you stay compliant and ready for the upcoming reforms.
Get in touch with our team today to discuss how we can help.
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