Half a Million Workers Set to Benefit from Landmark Pay Rise Following Fair Work Commission Decision

The Fair Work Commission has ruled that over half a million workers in women-dominated industries will receive significant pay rises. This decision addresses gender-based pay imbalances in sectors like healthcare, childcare, and pharmacy.

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The exterior of the Fair Work Commission building
Half a Million Workers Set to Benefit from Landmark Pay Rise Following Fair Work Commission Decision | en.Econostrum.info - Australia

In a significant move, the Fair Work Commission (FWC) has ruled that over half a million workers in industries predominantly staffed by women will see substantial pay increases.

This historic decision directly addresses longstanding gender-based pay imbalances that have affected sectors such as childcare, healthcare, pharmacy, and social work.

These industries, which have long been undervalued despite their essential roles, will benefit from pay rises that range from 14.1 percent to as much as 35 percent.

According to 9news, this ruling marks a pivotal shift in Australia’s approach to gender pay equity, ensuring fairer compensation for thousands of workers across the nation.

Fair Work Commission’s Ruling and Its Impact

The FWC‘s ruling applies to workers in sectors such as childcare, pharmacy, healthcare, and social work—industries historically dominated by women. More than 500,000 workers are set to benefit from this decision.

Among them, 175,000 workers are directly covered by the five awards, while an additional 335,000 workers are indirectly supported by these awards.

Affected workers will see wage increases of up to 35 percent, with certain categories already set to receive specific raises. For example, pharmacists will receive an increase of 14.1 percent, which will be phased in between June 2025 and June 2027.

For other sectors, the exact pay rises are still being determined, but provisional recommendations suggest increases of up to 35.23 percent in some cases.

The Role of Unions in Securing Pay Equity

The Australian Council of Trade Unions (ACTU) has expressed strong support for the ruling, calling it a historic step in closing the gender pay gap. ACTU president Michele O’Neil welcomed the decision, stating,

Unions welcome today’s landmark ruling by the Fair Work Commission, which recognises that working Australians should not be undervalued and underpaid because of their gender.

She further emphasized that

For too long, jobs where the majority of workers are women have been paid less. Discounting women’s work has contributed to the gender pay gap and worsened cost-of-living pressures for households.

This decision is seen as a much-needed step toward correcting these inequities.

Government Action and Legal Background

This ruling follows the “Secure Jobs, Better Pay” bill passed by the Albanese government in 2022. This bill amended the Fair Work Act to make gender equity a central consideration in pay decisions.

The law explicitly required the Fair Work Commission to consider gender in determining wage rates, ensuring that women-dominated industries are given due recognition in pay assessments.

The Five Key Sectors Affected

The workers benefiting from this ruling are covered under five key awards:

  • Pharmacy workers under the Pharmacy Industry Award 2020.
  • Health professionals, pathology collectors, dental assistants, and other healthcare workers under the Health Professionals and Support Services Award 2020.
  • Social workers, employees in crisis accommodation, and home care workers in disability care under the Social, Community Home Care and Disability Services Industry Award 2010.
  • Dental assistants and dental/oral therapists under the Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020.
  • Children’s services employees under the Children’s Services Award 2010.

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