Expert Panel decision on gender-based undervaluation – priority awards

On 16 April 2025, the Fair Work Commission’s (FWC) Expert Panel delivered its first decision as part of the review on whether certain classifications in five modern awards (‘priority awards’) have been the subject of gender-based undervaluation (Review).

The priority awards that were the subject of the Review are:

1. Health Professionals and Support Services Award 2020 (HPSS Award)
2. Pharmacy Industry Award 2020 (Pharmacy Award)
3. Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award);
4. Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020 (ATSIHW Award); and
5. Children’s Services Award 2010 (Children’s Services Award).

Here, our experts share insights into the FWC’s decision and explain its implications for business owners.

Background to the Review

The Review was a consequence of amendments to the Fair Work Act 2009 (Cth) (FW Act), which commenced on 7 December 2022, arising out of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth).

These amendments included (amongst other things) the promotion of gender equality as a means by which the object of the FW Act is to be achieved and a requirement for the FWC to take into account the need to achieve gender equality in the workplace in ensure modern awards and the National Employment Standards (NES) provide a fair and minimum safety net of terms and conditions and in setting minimum wages.

As part of the 2022-2023 Annual Wage Review ([2023] FWCFB 3500), the FWC concluded that issues of unequal remuneration or gender-based undervaluation should be dealt with in the annual wage review process or other proceedings initiated by the FWC between annual wage reviews. This is instead of an application-by-application basis.

A two-stage research project was then conducted to identify occupations and industries in which gender-based segregation is prevalent and may be subject to undervaluation. In the 23-24 Annual Wage Review ([2024 FWFC 3500), the FWC considered which occupations and awards should be given priority and identified the above modern awards.

The decision

On 16 April 2025, the Expert Panel determined that the following classifications had been the subject of gender-based undervaluation and that there were work value reasons for varying modern award minimum wages for workers in these categories:

In response to the gender-based undervaluation detected in the Pharmacy Award, the Expert Panel determined that the first phase of wage variations would commence on 30 June 2025 (see below for further details).

For the other four awards, the Expert Panel set out their provisional view on award variations to remedy gender-based undervaluation (see below).

Pharmacists – increase to minimum wages of 14.1 per cent

The Expert Panel has increased wages in the Pharmacy Award by 14.1 per cent, which will be implemented in three phases occurring on 30 June 2025, 30 June 2026, and 30 June 2027.

A copy of the FWC Determination, which varies the wages in the Pharmacy Award from 30 June 2025, can be found here.

Health Professionals – HPSS Award

The Expert Panel’s provisional view was to establish a new classification and minimum wage rate structure that would increase minimum rates for Health Professionals as follows:

• AQF Level 5 qualification (e.g. Biomedical Technologist) up to 8.26 per cent.
• AQF Level 7 qualification (e.g. Physiotherapist) between 16.53 per cent and 29.91 per cent.
• AQF Level 9 qualification (e.g. Psychologist) between 18.77 per cent and 31.16 per cent.

In respect of AQF Level 5 qualifications, the proposed new classification would result in a reduction in the minimum wage rate for some classifications, however, transitional provisions would protect existing rates for existing employees.

Pathology Collectors – HPSS Award

The Expert Panel’s provisional view was that pathology collectors be re-classified in the Support Services employees structures to Levels 5,6 and 7 to remedy gender-based undervaluation as follows:

This re-classification would increase minimum rates for pathology collectors in the range of 1.8 per cent to 10.9 per cent.

Dental Assistants – HPSS Award

For dental assistants covered by the HPSS Award, the Expert Panel’s provisional view is to re-classify indicative roles in the Support Services employees structure to Levels 1, 5, 6 and 7, as follows:

This re-classification would translate into an increase of up to nine per cent for dental assistants.

SCHADS Award

The Expert Panel proposed abolishing the five separate classification structures in the SCHADS Award and replacing them with a single, simplified classification and wage structure.

Details of the proposed new classification structure can be found in paragraph [392] of the Expert Panel’s 16 April 2025 Decision ([2025] FWCFB 74).

The Expert Panel considered that the new classification structure would render the Social, Community and Disability Services Industry Equal Remuneration Order (ERO) redundant and expressed a provisional view that the ERO should be revoked upon implementation of the new classification structure.

Dental Assistants and Dental/Oral Therapists – ATSIHW Award

The Expert Panel’s provisional view is to abolish the current classification structure and place dental assistants within the Health Worker classification structure at Levels 2, 3 and 4 to recognise the acquisition of occupational qualifications and the exercise of cultural skills.

This would translate into increases of between 10.7 per cent and 34 per cent for dental assistants.

In respect of dental/oral therapists, the Expert Panel’s provisional view is to introduce a new classification structure for dental/oral therapists that aligns with the HPSS Award for AQF Level 7 qualified employees.

This would translate into increases of between 16.88 per cent and 35.23 per cent for dental/oral therapists.

CSEs – Children’s Services Award

The Expert Panel’s provisional view is to introduce a new classification structure for Children’s Services Employees (CSEs).

The proposed new classification structure would result in increases of up to 23 per cent for a Certificate III-qualified CSE.

The Expert Panel noted that the capacity of employers to bear the cost of the proposed new wages structure will depend on an adjustment to Government funding. It was therefore proposed that the implementation be phased over five years in annual increments, and there be an initial increase for CSEs of five per cent operative from 1 August 2025.

Looking ahead

The outcome of the Review for the Pharmacy Award and the provisional views in the four remaining priority awards have significant labour cost and general compliance implications for employers in the health, care and community sectors.

For the provisional views of the four remaining priority awards, parties are being given an opportunity to be heard in relation to the provisional views, including cost implications and the issues of operative dates and phasing-in.

In addition to the priority awards, we can expect further reviews for gender-based undervaluation will occur in industries and occupations with a traditionally high proportion of female workers, including retail workers, veterinary nurses, legal services, hairdressers, and beauty therapists.

If the gender-based undervaluation decision raises any questions for your business or you would like to discuss the implications further, please reach out to our Citation Legal team for a confidential chat.

About our author

Adele Granata is an experienced professional and Special Counsel at Citation Legal. Based in our Sydney office, Adele works closely with clients across a wide range of industries and has particular experience within the retail, sport, health, and recruitment/on-hire industries. Adele has significant experience in advisory matters and values a strong focus on practical commercial outcomes for clients. Adele is also experienced in representing clients in the Fair Work Commission in employment disputes, including unfair dismissal claims, general protections claims and disputes regarding enterprise agreements and bargaining.