Fair Work Commission to increase minimum pay rates in the care and community sector

The Fair Work Commission has handed down a significant decision affecting employers in the care and community sector.

It found that roles covered by five modern awards have been subject to “gender-based undervaluation”, and as a result, minimum pay rates under these awards will increase, on top of, the usual 1 July annual wage review. 

It’s important employers understand what this means for them both financially and operationally, and consider what it means for workforce planning, payroll, and compliance obligations.

If you’re looking for the official details of the decision, the Fair Work Commission has published a summary of the decision here.

Disclaimer: The information in this article is current as at 23 May 2025, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.

Which awards will the pay increases apply to? 

The modern awards that will be affected by this decision are:

• Pharmacy Industry Award 2020; 
• Health Professionals and Support Services Award 2020
• Social, Community, Home Care and Disability Services Industry Award 2010
• Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020.
• Children’s Services Award 2010.

What does gender-based undervaluation mean?

Gender-based undervaluation is where there’s an award that covers a high proportion of female workers, and the minimum rates set by that award, has been found to be less than they should be. This is due to historical views about work in female-dominated industries being of less value than work performed by men. 

In other words, gender-based undervaluation is the idea that current award rates in female-dominated industries have been set too low, specifically because there is a high proportion of females that work in these industries.

What is the background to this decision? 

This review was completed by the Fair Work Commission on their own initiative. It was influenced by amendments made to the Fair Work Act last year, which now requires the Fair Work Commission to consider achieving gender equality in the workplace when making determinations regarding modern awards. 

The Fair Work Commission targeted the care and community sector as this is a sector in which more women than men work.

What did the Fair Work Commission decide?

The Fair Work Commission is still finalising arrangements regarding pay increases in the four other awards, but has made a final determination regarding the Pharmacy Industry Award 2020. We explain the changes to pay rates in the Pharmacy Industry Award below. 

What is the Pharmacy Industry Award?

The Pharmacy Industry Award is a modern award that covers employers in the ‘community pharmacy industry’ and their employees who fit within the classifications of the award.

As a modern award, the Pharmacy Industry Award provides a safety net of entitlements for employees in that industry, and sets out the minimum pay and working conditions for those employees. 

What is a ‘community pharmacy’?

For a business to be covered by the Pharmacy Industry Award, they must be a ‘community pharmacy’ which is defined in the award to be a business to which all of the following apply:

1. The business is established wholly or partly for compounding or dispensing prescriptions for, or selling medicines or drugs to, the general public from the premises on which the business is conducted, whether or not other goods are so sold from those premises; and
2. If required to be registered under legislation for the regulation of pharmacies in force in the place in which the premises on which the business is conducted are located, the business is so registered; and
3. The business is not owned by a hospital or other public institution or operated by the government.

The Award therefore covers business such as retail pharmacies that you might find in a shopping centre.

What employees are covered by the Pharmacy Industry Award?

The Pharmacy Industry Award provides coverage for a range of employees who may work in a pharmacy, such as:

• Pharmacy Assistants; 
• Pharmacy Students; 
• Pharmacy Interns; 
• Pharmacists;
• Experienced Pharmacists; 
• Pharmacists in Charge; and 
• Pharmacist Managers. 
• What will change in the Pharmacy Industry Award?

The changes to the Pharmacy Industry Award will impact the minimum pay rates for employees classified as a Pharmacy Intern, Pharmacist, Experienced Pharmacist, Pharmacist in Charge or Pharmacist Manager. The increases will apply to all the classifications, it does not matter whether the employee working in the role is male or female. 

Pharmacy Assistants and Pharmacy Students will not have their wages increased as their current level of pay was not found to be undervalued.

The minimum pay rates for Pharmacy Intern, Pharmacist, Experienced Pharmacist, Pharmacist in Charge and Pharmacist Manager will increase by roughly 14%, to be phased in over three years. 

When do the changes come into effect?

These changes will be implemented into the Pharmacy Industry Award in three phases commencing on 30 June 2025, with the next increase to occur on 30 June 2026 and the final increase to occur on 30 June 2027. 

In addition, the roles will have their rates increased by the usual 1 July pay increases. 

You can see the rates that will apply from 30 June 2025 here, but remember they will then be increased by the general 1 July increase on the next day.

How can employers prepare? 

For employers covered by the Pharmacy Industry Award it is important that you regularly review the minimum wages in the award to ensure you are paying your employees correctly. 

Additionally, employers paying their employees ‘above award rates’ will need to ensure that the rates being paid to their employees are still above the new increased rates in the Award following the determination. 

What do we know about the changes to the other awards?

The Fair Work Commission has made provisional views that the following roles in the other awards are undervalued on gender grounds:

• 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 (SCHADS Award).
• 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.

No date has been set for when decisions on what the pay increases will be, or when they will come into effect, but we’ll let you know as soon as a decision is made.