Legal Insights

Gender-based undervaluation reviews of SCHADS and HPSS Awards

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• 19 June 2026 • 3 min read

As part of a broader review into gender-based undervaluation in women-dominated industries, the Fair Work Commission has developed changes to classifications and wage rates under five modern Awards, including, among others, the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award) and the Health Professionals and Support Services Award 2020 (HPSS Award). 

The decisions, handed down on 26 May and 1 June 2026 respectively, require employers to reclassify affected employees by years of experience or substantive role, rather than qualifications or job title, and foreshadow staggered increases to pay rates (noting the exact increases are yet to be finalised).

Employers covered by these Awards need to understand what is changing, when, and what steps to take. The table below sets out the key details.

SCHADS Award 

  • Key dates and changes
    DateWhat is changing?Who is affected?
    1 July 20264.75% minimum wage increaseAll employees covered by the SCHADS Award
    1 October 2026Initial 15% increase to minimum wages (provisional view) Home Care Employees – Disability Care (currently engaged under Schedule E to the SCHADS Award)
    1 October 2027 
    • New classification structure replaces Schedules B, C, E and F
    • Classification by experience/role rather than qualifications

    2012 SACS Equal Remuneration Order will be revoked 

    All employees covered by the SCHADS Award 

HPSS Award 

  • Key dates and changes
    DateWhat is changing?Who is affected?
    1 July 20264.75% minimum wage increaseAll employees covered by the HPSS Award
    1 October 2026
    • New classification scheme and minimum rates introduced 
    • New minimum qualification standards 
    • Updated penalty rates and overtime schedules
    Health Professional employees at Levels 1 – 4 
    1 July annually from 2027 to 2030 Further staggered rate increases Health professional employees at Levels 1 – 4 

Important: No employee can be worse off. Where an employee’s existing rate exceeds the new rates, that higher rate is preserved.  

Interaction with the 2026 Annual Wage Review: The Commission has published draft determinations setting out the precise increases as a result of the decisions. These may be revised to account for the increases determined in the latest Annual Wage Review. 

Interaction with enterprise agreements: If an enterprise agreement applies to your organisation, the base pay rates must not be less than the award rate. To assess whether pay rates are sufficient, a classification translation exercise must first occur to ensure that enterprise agreement classifications are correctly mapped to the new award classifications.

What is required of employers? 

Employers should: 

Review job descriptions and commence the process to reclassify employees under the new proposed frameworks (the Commission has published draft translation tables to assist with this process).
Review payroll systems and industrial instruments to ensure compliance with new minimum rates.
Monitor the ASU’s work value pay rise claim under the SCHADS Award, which has resumed after a two-year pause (noting that the ASU is seeking a 35% work value pay rise for 300,000 SCHADS-covered community and disability workers).

Key takeaways 

These changes represent a significant shift for the NFP and community healthcare sectors. Following the minimum wage increases on 1 July 2026, and given the first tranche of additional minimum wage increases commencing on 1 October 2026, employers should begin reviewing classifications, payroll mapping and industrial instruments now to ensure they are ready. Early action will help avoid underpayment risk and ensure a smooth transition to the new structures.

How we can help

If you need assistance navigating these changes, including reclassification, payroll compliance or reviewing your industrial instruments, please get in touch with our Employment, Safety and People team.

Lindy Richardson

Lindy advises on employment law, with a particular focus on industrial relations, employment, and anti-discrimination law.

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Meredith Kennedy

Meredith loves working with her clients to navigate a path through complex areas of law and delicate employment situations.

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