FWC orders pay hike to rectify gender-based undervaluation for health professionals, community services, children’s services
Employees covered in five priority awards in Australia are set for a pay increase after the Fair Work Commission (FWC) found that their wages were historically undervalued based on gender.
The Expert Panel for pay equity in the care and community sector issued its initial decision this week, finding the following employees in women-heavy workforces to have been the subject of gender-based undervaluation:
Pharmacists covered by the Pharmacy Industry Award 2020
Health professionals, pathology collectors, and dental assistants covered by the Health Professionals and Support Services Award 2020
Social and community services employees, crisis accommodation employees, and home care employees in disability care covered by the Social, Community, Home Care and Disability Services Industry Award 2010
Dental assistants and dental/oral therapists covered by the Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020
Children's services employees covered by the Children's Services Award 2010
To rectify the undervaluation for pharmacists, the FWC said pharmacists covered in the decision will receive a 14.1% increase in minimum wage rates.
The increase will be implemented in three phases, with the first one taking effect on 30 June 2025. The next phases will take place on 30 June 2026, and again on 30 June 2026.
Meanwhile, the FWC also proposed substantial pay rates of up to 35% for the other occupations, including health professionals, dental assistants, and pathology collectors.
It also proposed a phased pay rise for childhood education and care employees included in the decision, starting with a five per cent increase set to take effect on August 1, and further adjustments to follow over the next five years.
In a statement, the Australian Council of Trade Unions said the "landmark" ruling recognises that workers should not be undervalued and underpaid because of their gender.
"For too long, jobs where the majority of workers are women have been paid less," ACTU president Michele O'Neil said. "Discounting women's work has contributed to the gender pay gap and worsened cost-of-living pressures for households."
The Health Services Union (HSU) also welcomed the FWC's decision in a statement.
"This is an historic and welcome decision from the Fair Work Commission," said HSU National Secretary Lloyd Williams.
"Boosting the minimum award rates for these workers is well overdue and will make a huge difference for members in the current cost of living crisis. There's still work to be done, but this is a major win for our members, and for women more broadly."
Both unions said the landmark agreement is the result of the Albanese government's workplace reforms in late 2022.
The reforms, known as the Secure Jobs, Better Pay Act, added gender equality as an objective of the Fair Work Act. It also enabled the FWC to order wage increases for employees whose pay have been undervalued as a result of their gender.
"Labor paved the way for the Fair Work Commission to be able to examine gender-based undervaluation, so we are grateful for that reform," Williams said.
While not every employee under the awards may get a pay hike, Williams stressed that they will continue advocating for better pay and conditions for all workers.
"We'd really like to see improved pay and conditions for all workers under this Award, and we'll keep pushing for that to happen."
