Almost a Month On

Have You Updated for the Health Professionals Award Changes?

It’s now almost a month since health professionals covered by the Health Professionals and Support Services Award 2020 (HPSS Award) moved to a new classification structure, with the first stage of significant pay increases applying from the first full pay period starting on or after 1 October 2026.

If you employ allied health professionals, it’s time to check: have your classifications, pay rates and payroll been updated? If not, your team may already be underpaid, and the back pay is growing with every pay run.

The changes come out of the Fair Work Commission’s Gender-based Undervaluation – Priority Awards Review, which looked at whether work in female-dominated industries has been historically undervalued. It’s one of the biggest award changes in allied health in years, and the first stage is already in effect.

Who is affected?

The 1 October changes apply to employees in the health professional stream of the HPSS Award, including:
  • physiotherapists and occupational therapists
  • speech pathologists and dietitians
  • psychologists, counsellors and social workers
  • pharmacists
  • medical imaging technologists and sonographers
  • other allied health professionals covered by the Award.
Support services staff are not affected by the 1 October classification changes. Separate changes for dental assistants and pathology collectors began on 1 April 2026, with a further increase from 1 January 2027.

What has changed?

1. A new classification structure

The old structure of Levels 1 to 4 with pay points has been replaced. Health professionals are now classified by:
  • their AQF qualification level (for example, a bachelor’s degree at AQF 7 or a master’s at AQF 9), and
  • their years of experience in the profession, including experience with previous employers.
That means every health professional needs to be reassessed and reclassified under the new structure. It isn’t a simple “add a percentage” exercise.

2. Pay increases phased in over five stages

The new rates are being phased in over five roughly equal stages:
  • Stage 1: first full pay period on or after 1 October 2026
  • Stages 2–5: from 30 June each year, 2027 to 2030.

3. On top of the annual wage increase

These increases are separate from, and in addition to, the 4.75% Annual Wage Review increase that applied from 1 July 2026. One doesn’t cancel out the other.

What if employees are already paid above Award?

The Award sets minimum rates. If an employee’s current pay is already at or above the new minimum for their classification, you don’t have to increase it at that point. Employees already on a higher rate keep it.
But you need to check at every stage. With four more increases to come, an employee who is comfortably above the minimum today may fall below it by 2028 or 2029.

Common risks for employers
 
  • Misclassification. Getting the AQF level or years of experience wrong is the biggest underpayment risk under the new structure.
  • Ignoring prior experience. Experience with previous employers counts. Ask for it and record it.
  • Missing a stage. Each 30 June increase needs to be applied on time.
  • Enterprise agreements. If you have an agreement, check that its rates stay above the new Award minimums. The Award changes also need to be factored into any new agreement negotiations.
  • Payroll set-up. Your payroll system needs the new classifications and rates loaded correctly.
What employers should do now

  1. List every employee covered by the health professional stream.
  2. Confirm each person’s qualifications (AQF level) and total years of relevant experience.
  3. Reclassify each employee under the new structure and work out their new minimum rate.
  4. Compare each employee’s current pay with the new minimum, and back-pay any shortfall from the first full pay period on or after 1 October. The sooner you act, the smaller the back-pay bill.
  5. Update contracts and payroll, and diarise the 30 June increase dates for 2027 to 2030.
  6. Tell your team what’s changing, so they understand their new classification and pay.
Need help?

Explore Potential can help you review classifications, check pay against the new Award rates, and update contracts and payroll processes so you stay compliant through every stage. Get in touch with our team to start the conversation.
 
This article is general information only and does not constitute legal advice. Always check current pay rates against the Fair Work Ombudsman’s pay guides.