Fair Work Australia decision delivers pay rise to 150,000 workers

Around 150,000 of Australia’s lowest paid workers will benefit from substantial pay rises of between 23 and 45% as a result of Fair Work Australia’s historic pay equity decision. 120,000 of these Social and Community Sector workers are women - working in difficult jobs often described as “caring” jobs, including working with people with disabilities, counselling families in crisis, running homeless shelters and working with victims of domestic violence or sexual assault.

The decision is the first ever successful pay equity claim in the national system, and a significant advance for equal pay for women.

The increases will be phased in over eight years from 1 December 2012. This phasing period will allow for an orderly and structured transition so that service providers are supported and properly funded to respond to this major structural change.

It is now essential that all state and territory governments also commit to funding their share to ensure the continued sustainability of the sector.

It is hoped that the decision will help the social and community services sector attract and keep qualified, valuable employees who deserve to be rewarded for their efforts. Properly valuing caring work and providing decent wages in industries dominated by women will also keep the economy strong and resilient.

The government will continue to work through the impact of this decision in consultation with all relevant parties.