Updated 24 July 2026
The Fair Work Commission's 2026 Annual Wage Review, together with the ongoing equal remuneration and gender pay equity work across the care sector, continues the most significant structural shift in care sector wages in a generation. From the first full pay period on or after 1 July 2026, a general wage increase of around 4.75% applies to the SCHADS Award and other modern awards, building on the earlier Aged Care Work Value outcomes.
For decades, research has consistently shown that the predominantly female care workforce was paid less than workers in male-dominated industries with comparable skill and responsibility levels. The Aged Care Work Value case awarded aged care workers increases of 15% (and in some cases more) above the national minimum wage increase. The SCHADS Award has also seen above-average increases since 2022, with SCHADS workers' rates moving higher in real terms relative to other award classifications. The Fair Work Commission continues to progress gender undervaluation and equal remuneration matters affecting care and community service classifications.
The 2026 Annual Wage Review delivered a general increase of approximately 4.75% to modern award minimum wages, applying from the first full pay period on or after 1 July 2026. This flows through every SCHADS classification level, which in turn lifts base rates, casual loading, penalty rates, and overtime. Exact cent-level rates should always be confirmed against the current pay guide. For confirmed figures, check the Fair Work Ombudsman pay and wages guidance and the relevant SCHADS Award summary.
The NDIA acknowledges wage increases in its annual Pricing Arrangements and Price Limits updates. However, some providers have found that NDIA price limit increases have not fully kept pace with Award wage increases plus superannuation, workers compensation, and on-cost increases. Providers operating in thin-margin service types need to model their actual cost per hour against the applicable NDIS price limit to confirm they are not delivering services at below-cost prices, especially after each 1 July increase.
Required actions include: accurate classification of all workers (pay equity increases apply at each classification level); reviewing your service mix (some services may no longer be viable at current NDIS price limits); workforce planning and retention investment (the pay equity increases were partly intended to reduce workforce turnover); and advocacy through peak body representation if NDIS price limits continue to lag behind Award increases. Always verify the current classification rates against the Fair Work Ombudsman before running your first pay period on or after 1 July 2026.
An organisation that genuinely values care work demonstrates it through fair compensation, not just at Award minimum rates but through above-award arrangements, clear career pathways, and transparent pay practices. Providers who lead on pay equity benefit from improved retention and recruitment, and are better positioned to communicate their value proposition to participants and plan managers.
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