$630 Million to Fund the Care-Sector Pay Rise: Who It Covers and What It Means for Your Pay
On 13 October 2026 the federal government committed $630 million so charities and not-for-profits can pay the Fair Work Commission's gender undervaluation increases to 460,000 health, disability and community services workers. What the money does, who it reaches, and what it doesn't change.
Prepared with AI assistance and checked against primary sources. How we work
What was announced
On 13 October 2026 the Ministers for Employment and Workplace Relations, Finance, Health and Aged Care, and Social Services jointly announced a $630 million investment to help charities and not-for-profit organisations that deliver government programs pay the wage increases flowing from the Fair Work Commission's finding that work in health, disability and community services has been undervalued because of gender-based assumptions.
| Item | Detail |
|---|---|
| Amount | $630 million |
| Workers the government says are covered | More than 460,000 health, disability and community services workers |
| Who receives the money | More than 128,000 organisations funded under 92 government programs |
| Purpose | To meet award-related wage increases while keeping services running |
| Other roles named | Legal assistance, housing, youth, community development, and First Nations health and community services workers employed by government-funded organisations |
Source: joint media release, 13 October 2026. The underlying Commission decisions are in the gender-based undervaluation priority awards review.
What the funding does, and what it doesn't
The money goes to employers, not to you. The $630 million is paid to funded organisations so they can afford the higher award rates. Your entitlement to the increase comes from the Fair Work Commission's decisions varying the awards, and it exists whether or not your employer receives extra funding.
It does not change the dates or the amounts. The Commission sets both. For SCHADS Schedule E disability home care workers, the interim increase of about 15% starts on 1 December 2026, after the Commission moved it from 1 October. The weekly and hourly figures are in SCHADS 15% disability pay rise delayed to 1 December 2026. For health professionals under the Health Professionals and Support Services Award, the new classification structure and rates started from the first full pay period on or after 1 October 2026.
It is not a guarantee that every employer is covered. The funding is attached to government programs. A provider that is funded through the NDIS, or that is a for-profit business, sits under different funding arrangements. The ministers' release says the funding "will also support Government-funded organisations that employ workers in other sectors affected by these award changes", but it does not list which programs.
Enterprise agreements still apply. If you are paid under an enterprise agreement, your pay is set by the agreement, which must leave you better off overall than the award. When the award rate rises above the agreement rate, the award's base rate becomes the floor for that classification. Check your agreement's rate against the award rate after 1 December.
Who is in the priority awards review
The Commission's review examined awards covering workforces that are mostly women, to test whether the minimum rates reflected the value of the work. The awards in the review are the Social, Community, Home Care and Disability Services Industry Award, the Health Professionals and Support Services Award, the Pharmacy Industry Award, the Children's Services Award and the Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award. The Commission's case page carries every decision, statement and determination: Gender-based undervaluation – priority awards review.
The government's release frames the funding as delivering on its 2025 election commitment to work with the Commission on that review. Aged care is a separate matter (the Aged Care Work Value Case), with its own funding stream.
What to do now
- Know your classification and pay point. The increases are applied to the award rate for your classification. If your classification is wrong, the increase will be wrong too. The SCHADS pay rates page shows the current rates; this week's Sunnyfield case shows what happens when pay point progression is ignored.
- Diary the dates. 1 October 2026 for health professionals under the HPSS Award (already in effect), 1 December 2026 for SCHADS Schedule E disability home care workers. Use the SCHADS pay rise calculator to see the before-and-after for your hours.
- Check the first payslip after each date. The payslip checker compares your base rate, penalties and loading with the award.
- Employers: model the new rates against your funding agreements now. The release says the funding is meant to maintain "service continuity and quality", which means it is tied to the programs you deliver. Contact your funding body to confirm how the uplift reaches you.
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Official resources
General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.
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FairWork Mate is an independent Australian publisher of workplace-rights information. Our content is prepared with AI assistance and draws on primary sources — the Fair Work Act, modern awards, and Fair Work Commission and Fair Work Ombudsman material. It is general information, not legal advice.