Gender Undervaluation & Pay Inequality: What Is it, and What It Means for Your Business

If you run a small business in health care, disability, early childhood education, pharmacy, or community services, pay attention. 

Because on 16th April 2025, the Fair Work Commission confirmed what many employees (and their advocates) have been saying for decades: 

The pay in many female-dominated industries has been historically undervalued because of gender. 

This isn’t just a headline for large organisations. It’s not just about “pay equity” in principle. This decision will change award rates, payroll costs, and how you justify wages in your business. 

In this article, I’ll break down what gender undervaluation and pay inequality means for you and your business, practically and financially. 

The Backstory - Gender Undervaluation & Pay Inequality

The Gender Undervaluation Review started as part of a wider push under the Secure Jobs, Better Pay reforms. For the first time, the Commission was required to actively consider gender equality when setting minimum pay in awards. 

They started with a handful of awards where: 

• The workforce is predominantly female, 

• The work has long been considered “low value” despite high levels of skill and responsibility, and 

• There were clear signs that historical assumptions around gender had impacted wage setting. 

What Did They Find? 

The Fair Work Commission confirmed gender undervaluation in several key awards: 

• Pharmacy Award – Pharmacists 

• HPSS Award – Health professionals, pathology collectors, dental assistants 

• SCHADS Award – Social and community services, crisis accommodation, and home care in disability care 

• ATSI Award – Dental assistants and oral therapists 

• Children’s Services Award – Early childhood educators and care staff 

  
  

In other words, they found the minimum pay rates do not reflect the true value of the work. 

And that’s about to be corrected. 

What This Means for You 

If you’re a small business covered by any of the above awards, this isn’t just “interesting background.” It’s going to impact your payroll, budgets, and employment decisions. 

1. Award Wage Increases Are Coming 

The Commission hasn’t yet handed down the new wage figures, but they’ve confirmed that current minimums are too low. That means pay rises are inevitable, and probably not just the usual 4–5% bump from the annual wage review. 

Expect targeted, above-average increases tied directly to specific roles and classifications. 

2. Backpay Pressure Is Possible 

While not automatic, employees (and unions) may push for pay increases to be applied from the date of the decision - 16th April 2025. If you’ve hired someone since then or are about to, be prepared to re-check pay rates once the numbers are announced. 

3. You’ll Need to Re-Evaluate Classifications 

One of the biggest risks for employers is misclassifying employees under an award. With new valuations on the horizon, you’ll need to make sure each role is classified correctly under the right level and pay point, especially for community and health services roles. 

4. Pay Equity Scrutiny Is Here to Stay 

Even if you're not directly affected by these awards, the message from the Commission is loud and clear: 

Pay structures must be based on the real value of the work, not outdated assumptions about gender. 

If you’ve never reviewed your pay practices through this lens, now’s the time. 

What You Can Do Now 

✅ Audit who’s covered by which award. Especially casuals, part-timers, and hybrid roles. These are often misclassified. 

✅ Get familiar with the classification structure. Many employers apply a general level 1 or 2 rate without looking deeper. That won’t cut it going forward. 

✅ Start budgeting for increases. Assume award wage changes will apply this year and set aside contingency funds. 

Small Business, Big Impact 

It’s tempting to think, “But I’m just a small operator. This won’t affect me much”. Think again. 

• You’re not just a small employer, you’re part of an industry being scrutinised for underpaying skilled, essential, mostly female workers. 

• If you don’t review now, you’ll be forced to correct later, often at a higher cost (financially and reputationally). 

This shift isn’t just about compliance. It’s a chance to: 

• Attract and retain better people 

• Compete on fairness, not just rates 

• Build a workplace that truly values contribution, regardless of gender 

HR Support that’s on the Front Foot 

If your team includes these types of roles, and you’re unsure what this means for your business, I can help. 

Let’s make sure your business isn’t caught off guard. 

I work with small and medium businesses to make HR easier, safer, and less stressful. 

Book a free discovery call today. Let’s make managing staff the least of your worries.  

Get in Touch

Need help? Contact us today - sandra@hrconsultingtas.com.au or 0408 408 225  

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