The Social, Community, Home Care and Disability Services Industry Award (the SCHADS Award) is undergoing its biggest overhaul in years. Some disability home care workers get a pay rise within weeks, and the rest of the sector moves to a new classification structure from late 2027. If you employ people under SCHADS, now is the time to start planning.

Why the award is changing

The changes come from the Fair Work Commission’s Gender-based undervaluation – priority awards review. The Commission found that work in the social, community, home care and disability sectors — performed overwhelmingly by women — has historically been undervalued, and that the award’s existing classification framework was no longer fit for purpose.

The Commission finalised its decision on 1 June 2026, and in September 2026 confirmed the timing of the first increase.

What’s changing

The Commission has made four broad changes to the award:

• new definitions in the award
• new rules on progression between pay points
• a new classification structure
• new minimum pay rates

Key dates

The 1 December 2026 increase: who gets it

The early increase applies to home care employees who provide disability care — those currently classified under Schedule E of the award. They’ll receive an initial rise of up to 15% to their minimum award rates.

A few things to note:

• The increase was originally slated for 1 October 2026, but the Commission moved it to 1 December 2026.
• It’s an initial increase. Any remaining increase for these workers applies from October 2027.
• It doesn’t cover home care workers in aged care, or disability support workers outside home care settings.

Check each employee’s classification carefully. A blanket 15% across your whole workforce will be wrong — some staff get it, many don’t.

The 2027 changes: a new structure

From October 2027, a single, integrated classification structure will replace the separate schedules that currently cover social and community services, crisis accommodation, home care and disability work. Combined with new definitions and progression rules, this means most SCHADS employees will need to be reclassified.

Given how often pay point progression trips up employers — as recent enforcement cases in the disability sector show — the new progression rules deserve particular attention.

What employers should do now

1. Identify affected employees. Work out which of your staff are home care employees doing disability care work and will get the 1 December increase.
2. Update payroll before 1 December. Use the Fair Work Ombudsman‘s Pay and Conditions Tool or the updated SCHADS pay guide to load the new rates, and make sure they apply from the right pay period.
3. Check enterprise agreements. If your staff are covered by an enterprise agreement, base pay rates can’t fall below the award’s base rates. Check whether the new award rates overtake your agreement rates.
4. Model the costs. Factor the December increase and the larger 2027 changes into your budgets and funding plans.
5. Start reviewing classifications for 2027. Map your current roles against the new structure early, so you’re not scrambling when it takes effect.
6. Talk to your people. Let staff know what’s changing and when.

Where to find more

The Fair Work Ombudsman’s Changes to the Social, Community, Home Care and Disability Services Award page has the updated pay rates, the 1 December 2026 pay guide and links to the Commission’s decision. Its Pay and Conditions Tool already includes the new rates.

For free advice, call the Fair Work Infoline on 13 13 94.

Based on Fair Work Ombudsman guidance and Fair Work Commission decisions. This post is general information, not legal advice.