Closing the Gender Pay Gap Across Key Sectors
Australia’s employment landscape is in for yet another shake-up following the Fair Work Commission's recent findings on gender undervaluation across several modern awards.
Following the 2024 announcement as part of the National Minimum Wage review process that the Commission planned to undertake a targeted review of specific Awards to assess whether gender undervaluation was an issue, they have recently announced the results of their findings.
This isn't just another round of compliance updates, it's a targeted response to the ongoing gender pay gap, and it's set to impact a vast number of workers, and employers of all sizes across the country. If you're an employer in allied health, community services, or childcare, it's time to take note.
The Gender Pay Gap Gets Real Attention
The issue of the gender pay gap has been debated for years, but recent government and Fair Work Commission efforts are moving from discussion to action. The Commission launched a Gender Undervaluation Review several years ago, to examine whether female-dominated industries were receiving equal pay for work of comparable value.
The findings were conclusive: five key awards were not measuring up.
Which Awards Are Affected?
The review focused on the following awards:
- Pharmacy Industry Award
- Health Professionals and Support Services Award
- Social, Community, Home Care and Disability Services (SCHADS) Award
- Children’s Services Award
- Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Controlled Health Services Award
Together, these awards represent approximately 1.1 million Australian workers—around 9% of the national workforce.
What’s Definitely Changing?
The only confirmed change so far applies to Pharmacists and pharmacy interns under the Pharmacy Award. These workers will receive a 14.1% pay increase, rolled out in three stages starting 30 June 2025. This increase is separate from the usual annual wage review and will significantly shift the award rate landscape in pharmacy settings.
For employers in this sector, this means immediate action: reviewing pay structures, ensuring compliance, and possibly adjusting broader compensation strategies to align with the new award minimums.
What’s On the Table?
While the Pharmacy Award has definitive rulings, the other four awards are currently in the provisional recommendation phase. However, whilst they have indicated these are their "provisional" views and will be consulting with industry, employer and employee representative organisations, in all likelihood these changes are very likely to go through in some form.
Here’s a breakdown of the proposed changes:
Health Professionals and Support Services Award
Big changes are being considered here, particularly for allied health professionals, pathology collectors, and dental assistants. Proposals include:
- A new classification structure for health professionals
- Reclassification of support roles
- Introduction of a formal management tier
These updates are expected to result in substantial pay increases for some allied health professionals and improved career progression clarity for those in managerial roles.
SCHADS Award
Anyone who has employees covered under the Social, Community, Home Care and Disability Services Award know that this Award is one of the toughest to navigate. If the changes are rolled out, this complex award is being streamlined.
The proposal includes collapsing five existing classification structures into one, simplifying navigation for employers and employees alike. The goal is not just simplicity but also alignment with comparable roles in other sectors—meaning more competitive pay rates are on the horizon.
This will results in a simpler Award to navigate, but significant pay increases for some classifications.
Children’s Services Award
The changes here may roll out fastest, with a 5% pay increase proposed for 1 August 2025. This update includes benchmarking against similar valued roles in other industries and an overhaul of the classification structure.
This sector is critical for working families and the broader economy, and while Fair Work suggests the changes won't raise childcare fees, the real-world implications for service providers remain to be seen.
Aboriginal Controlled Health Services Award
This award, covering a highly specialised and vital workforce, will undergo alignment with the Health Professionals Award. The proposed restructure aims to reflect the value of the work more accurately and ensure parity across similar health roles.
What Should Employers Do Now?
While most of these changes are not yet final, it’s crucial for employers to stay informed and prepare.
Here are a few proactive steps to consider:
- Audit your current pay structures: If your business employs staff under any of the affected awards, start assessing how these proposed changes might impact your payroll.
- Engage with industry bodies: Conferences and consultations will be held by Fair Work, giving you a chance to contribute feedback or stay updated on developments.
- Plan for compliance: Particularly for pharmacists, early planning is essential to implement the first stage of the pay rise by mid-2025.
- Engage support: know where you will go for technical HR and implementation support when you need it. Ensure you’re engage with specialist providers who will keep you updated, so you don’t have to worry about missing anything.
More Change Is Coming
This isn’t the final wave of updates. The current government has shown a strong commitment to improving employment conditions, with further changes on the horizon—including a planned ban on non-compete clauses and the continued rollout of the "right to disconnect" laws, which come into full effect for small businesses by 26 August 2025.
Employers should expect more industrial relations reforms aimed at improving job security, pay equity, and workplace flexibility. Staying ahead of these changes isn’t just about compliance—it’s about building a workplace that values and retains great people.
An Invitation
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