Gender Undervaluation FWC Major Case – Progress Update

As part of the 2023-24 Annual Wage Review Decision, the Fair Work Commission (FWC) established its Gender Undervaluation – Priority Awards Review process. The review, commenced on the Commission’s own motion, is designed to consider variations to classifications and minimum wage rates on work value grounds within six Modern Awards applicable in highly feminised industries, “to remedy potential gender undervaluation”. The FWC handed down its decision, which includes provisional views on the Modern Awards discussed in this article, on 16 April 2025.

Please note: This process will reach its conclusion late in 2025 – connect below with our news posts of May & July 2025 for the most up to date information on progress.

The 2023-24 Annual Wage Review Decision (2024 AWR) explains, “gender undervaluation, considered in the award context, refers to a situation where the minimum rates of pay in an award have been established based on an undervaluation of the relevant work that has occurred for gender-related reasons”.

Priority Modern Awards being reviewed in the initial phase include the Social, Community, Home Care & Disability Services Industry Award 2010; the Children’s Services Award 2010 and the Health Professionals & Support Services Award 2020.

Within the 2024 AWR, the FWC identified that although female participation in the workforce has continually increased across the last decade, “there remain significant impediments to the fuller participation of women in the workforce”. The FWC further observed that, “the gap between male and female participation rates remains significant”, while “women are far more likely to work part-time hours than men”.

Seeking to eliminate gender undervaluation and achieve gender equality in the workplace, the FWC authorised a research project which was undertaken following the 2022-23 Annual Wage Review and resulted in a series of reports. The ‘Stage 1’ and ‘Stage 2’ reports, along with the research examined as part of the recent Aged Care Work Value Case (which awarded significant increases to ‘aged care direct care’ employees from 30 June 2023, with further increases to flow in 2025) allowed the Commission “to identify the priority areas for attention in eliminating gender undervaluation in Modern Awards”.

Children’s Services Award 2010

Child Carers covered by the Children’s Services Award 2010 (CS Award) have been identified as a priority occupation, with the FWC assessing that as many as 88,000 employees, nearly all of whom are women, are potentially directly impacted by undervaluation, “if the rates of pay in the [Award] undervalue the work of Child Carers for gender-related reasons”.

In order to rectify potential undervaluation of the Levels 2 – 4 within the CS Award, the FWC will consider realigning the “benchmark” rate for pay equity comparisons, from the historical C10 classification of the Manufacturing Award (currently, $1032.30 per week) to the Level 2.1 Social & Community Services worker classification of the Social, Community, Home Care & Disability Services Industry Award 2010 (currently, $1269.73 per week), which has more recently been recognised as the “benchmark rate for female-dominated ‘caring’ work”. During the Aged Care Work Value Case, the FWC observed, “The adoption of such a benchmark rate for work of this nature, in replacement of the C10 rate, would provide a stable anchor point for a modern award system which ensures gender equality in the valuation of work”.

Earlier this year, as part of its review of entry-level classifications contained in 70 Modern Awards, the FWC confirmed its intent to raise the rate of pay for the Level 1 classification to meet the National Minimum Wage, likely to occur from January 2025. In addition, on 8 August, the Government announced it would fund a 15% wage increase for the sector, subject to providers limiting fee increases for families over the next two years.

Social, Community, Home Care & Disability Services Industry Award 2010

The second priority occupation identified by the FWC for consideration is that of disability workers under the Social, Community, Home Care & Disability Services Industry Award 2010 (SCHADS Award).

The Commission noted that the 15% increase awarded to Home Care employees supporting aged care clients caused the Home Care classification stream to be split in two, with Home Care employees supporting clients with a disability failing to benefit from the work value wage increase that flowed from 30 June 2023. The FWC commented, “the result is plainly anomalous”. Observing that “some employers and employees covered by the SCHADS Award undertake a mixture of aged and disability home care services”, the Commission will debate the merits of rolling all work classified as Disability Support (whether provided in a client’s private residence or in the community) into the Social & Community Services classification stream, which would see most employees benefit from increased rates of pay derived from the Equal Remuneration Order (ERO).

ES Subscribers should review our special bulletin of 5 August for a comprehensive summary of the numerous variation applications the FWC is currently considering for the SCHADS Award.

Health Professionals & Support Services Award 2020

The third priority area the FWC has identified includes the occupations of Medical Technicians, Dental Assistants and Psychologists covered by the Health Professionals & Support Services Award 2020 (HPSS Award).

Similar to the considerations described above with respect to the CS Award, the FWC proposes to evaluate whether classifications within the HPSS Award, particularly in callings which require an undergraduate degree, should be realigned to a “benchmark” comparison rate of the C1 within the Manufacturing/Professional Employees awards (currently, $1211.80 per week), instead of the C10 classification (currently, $1032.30 per week), as has been the traditional approach.

Hearings are scheduled throughout the month of December, with the Commission desiring these priority award matters to be complete before the next Annual Wage Review Decision is issued in mid-2025.

UPDATE – Decision Issued & Final Stage Hearings set

The Full Bench handed down its decision on 16 April 2025 setting out provisional views regarding the desired amendments to the above-named Modern Awards – catch up with our related news post.

Following proceedings in July, final stage hearing dates have been set for October and November – catch up with our related news post.