The Fair Work Commission's equal remuneration order affecting aged care workers — and the broader pay equity commitments for the social and community services sector — represent the most significant structural shift in care sector wages in a generation.
For decades, research has consistently shown that the predominantly female care workforce was paid less than workers in male-dominated industries with comparable skill and responsibility levels. The Aged Care Work Value case awarded aged care workers increases of 15% (and in some cases more) above the national minimum wage increase. The SCHADS Award has also seen above-average increases in the 2022-25 period, with SCHADS workers' rates moving higher in real terms relative to other award classifications.
The NDIA acknowledged the wage increases in its Pricing Arrangements and Price Limits updates. However, some providers have found that NDIA price limit increases have not fully kept pace with Award wage increases plus superannuation, workers compensation, and on-cost increases. Providers operating in thin-margin service types need to model their actual cost per hour against the applicable NDIS price limit to confirm they are not delivering services at below-cost prices.
Required actions include: accurate classification of all workers (pay equity increases apply at each classification level); reviewing your service mix (some services may no longer be viable at current NDIS price limits); workforce planning and retention investment (the pay equity increases were partly intended to reduce workforce turnover); and advocacy through peak body representation if NDIS price limits continue to lag behind Award increases.
An organisation that genuinely values care work demonstrates it through fair compensation — not just at Award minimum rates but through above-award arrangements, clear career pathways, and transparent pay practices. Providers who lead on pay equity benefit from improved retention and recruitment, and are better positioned to communicate their value proposition to participants and plan managers.
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