SCHADS Award Wage Increase Coming This July: What Employers and Workers Need to Know

What Is the SCHADS Award?

The Social, Community, Home Care and Disability Services Industry Award (SCHADS Award) sets the minimum pay rates and employment conditions for thousands of workers across Australia's social care sector.

The award covers employees working in:

• Disability support services
• Home care services
• Community services
• Crisis accommodation
• Family day care
• Social and community programs

Each year, the Fair Work Commission reviews minimum wages through its Annual Wage Review process and determines whether award wages should increase. Any approved increase generally takes effect from 1 July.

Why Are Wages Increasing?

The Fair Work Commission reviews award wages annually to help workers keep pace with economic conditions, including inflation, cost-of-living pressures, and broader labour market trends.

In recent years, the social care sector has faced significant workforce shortages, increased demand for services, and growing recognition of the essential role support workers play in the community.

The 2026 Annual Wage Review decision is expected to be handed down on 2 June 2026, with any increase applying from July.

What Does This Mean for Employers?

If your organisation employs staff under the SCHADS Award, now is the time to prepare.

Key actions include:

1. Review Payroll Systems

Ensure payroll software is updated with the new award rates before the first July pay run.

2. Check Employee Classifications

Incorrect classifications remain one of the most common compliance issues in the sector. Review employee levels to ensure workers are being paid according to their duties and responsibilities.

3. Budget for Increased Labour Costs

Providers should factor higher wage expenses into workforce planning, rostering, and service delivery budgets for the new financial year.

4. Review Casual and Penalty Rates

Any increase to base rates will also impact:

• Casual loading calculations
• Weekend penalties
• Public holiday rates
• Sleepover and broken shift allowances
• Overtime payments

What Does This Mean for Community Service Workers?

For caseworkers, support workers and community services employees, the increase may provide welcome relief amid ongoing cost-of-living pressures.

The SCHADS Award establishes minimum pay rates, meaning some employers may already pay above-award wages. However, employers must ensure no employee is paid below the updated minimum rates once the changes come into effect.

When Will the New Rates Be Available?

The Fair Work Commission is expected to announce its Annual Wage Review decision on 2 June 2026. Following the announcement, updated SCHADS pay guides will be published by the Fair Work Ombudsman and the new rates will apply from the first full pay period on or after 1 July 2026.

Preparing for the Changes

The social care sector continues to evolve, and staying on top of award updates is a critical part of workforce compliance.

Employers should begin reviewing budgets, workforce classifications, and payroll processes now to ensure a smooth transition when the new rates are released.

For workers, July presents an opportunity to review payslips and ensure wages align with the updated SCHADS Award requirements.

At HiTalent, we work closely with disability, community, and social care not for profits across Australia and understand the challenges organisations face when navigating award changes. As the sector continues to grow, attracting and retaining quality staff remains just as important as maintaining compliance.

Need support finding qualified social care professionals? Contact the HiTalent team to discuss your workforce needs.