The Social, Community, Home Care and Disability Services Industry Award (SCHADS) [MA000100] sets out standards, entitlements, and pay rates for a wide range of roles in the social and community sector.
Understanding if your business is covered under the SCHADS Award is important as it ensures you are paying your employees accurately, complying with Fair Work legislation, and maintaining a safe and fair workplace for everyone. In this guide, we breakdown the SCHADS Award, focusing on the 2025 updates, pay rates across various levels, and specific considerations for different states including Victoria (Vic), Queensland (QLD), and New South Wales (NSW).
What is the SCHADS Award?
The SCHADS Award is a crucial framework in the social and community services sector. It covers a range of professionals, including disability support workers, ensuring fair compensation and work conditions. The award is periodically reviewed to reflect industry changes and economic conditions.
SHADS Award Coverage
The SCHADS Award covers employers and employees who fit within the classifications of the award and are in the following sectors:
- Crisis assistance and supported housing
- Social and community services
- Home care
- Family day care scheme.
The social and community sector means the provision of social and community services including:
- Social work
- Recreation work
- Welfare work
- Youth work or community development work.
This sector also includes:
- Organisations who primarily engage in policy, advocacy, or representation on behalf of organisations carrying out such work
The provision of disability services including the provision of personal care and domestic and lifestyle support to a person with a disability in a:
- community
- residential setting
- respite centre and day services.
- community
The home care sector means the provision of personal care, domestic assistance or home maintenance to an aged person or a person with a disability in a private residence.
The crisis assistance and supported housing sector applies to organisations providing vital support during times of crisis. This includes:
- Emergency accommodation
- Supported housing.
The SCHADS Award has separate streams (rules) for each of these industries, so it’s essential to determine which stream applies to your business and employees.
2025 SCHADS Award Update – What You Need to Know
The 2025 update of the SCHADS Award introduces significant changes, particularly in terms of pay rates and conditions for overtime. These changes are crucial for maintaining industry standards and ensuring fair compensation for workers.
The SCHADS wage increases are in two stages
| Stage 1 | Stage 2 |
|---|---|
| If the percentage increase for a specific classification level exceeds 3%, half of the total increase was implemented on 1 January 2025 | The remaining percentage takes effect on 1 October 2025 |
| If the percentage increase for a specific classification level exceeds 3%, but half of the total increase amounts to less than 3%, a 3% increase was applied on 1 January 2025 | The remaining percentage will be implemented on 1 October 2025 |
| If the percentage increase for a specific classification level is less than 3%, the full increase was applied on 1 January 2025 | No additional increase will occur on 1 October 2025 |
SCHADS Award Pay Rates by Level
The SCHADS Award categorises employees into different levels based on their roles, responsibilities, and qualifications. Here's a breakdown of the pay rates for each level:
Level 2 to 8 Pay Rates:
- Level 2: Generally, for workers with some experience in the sector but not in a supervisory role.
- Level 3 to 5: These levels include more experienced workers, with Level 5 often involving supervisory responsibilities.
- Level 6, 7 and 8: These are typically for senior roles that require significant experience and qualifications, with corresponding higher pay rates.
SCHADS Overtime Pay Rates
- The SCHADS Award outlines specific provisions for overtime work, ensuring that employees are fairly compensated for hours worked beyond their normal rostered hours.
SCHADS Award Salary Details
- Salaries under the SCHADS Award vary based on the level, experience, and qualifications of the employee, as well as the specific nature of their role.
Disability Support Workers under SCHADS
- Disability support workers are covered under the SCHADS Award, with their pay rates determined by the level of their role and responsibilities.
SCHADS Award in Different States
Victoria, QLD, and NSW:
While the SCHADS Award provides a national framework, there can be state-specific nuances. Employers and employees in Victoria, Queensland, and New South Wales need to be aware of any state-specific conditions or allowances that may apply.
Minimum Wage 2025
Each year, the Fair Work Commission reviews both the National Minimum Wage and the minimum pay rates under awards (Annual wage review). Most changes begin on the first full pay period on or after 1 July.
The National Minimum Wage applies to employees not covered by an award or registered agreement. This is the minimum pay rate provided by the Fair Work Act 2009.
As of 1 July 2025, the National Minimum Wage is $24.95 per hour or $948.00 per week.
Some awards contain introductory pay rates for new employees in their industry.
Major Updates in the SCHADS Award Clauses
1. Pay Rate Adjustments:
- One of the most significant updates in the SCHADS Award is the adjustment of pay rates across various levels. This includes increased base rates for levels 2 through 7, reflecting the growing recognition of the skills and responsibilities in these roles.
2. Overtime and Penalty Rates:
- Changes to overtime and penalty rates have been implemented, ensuring fair compensation for employees working beyond their standard hours. This includes clearer definitions of overtime work and the corresponding rates applicable.
3. Leave Entitlements:
- The latest update includes revisions to leave entitlements, encompassing annual leave, personal/carer’s leave, and parental leave. These changes aim to provide greater support and flexibility to employees.
4. Work Arrangements:
- Updates to work arrangement clauses have been made, offering more clarity on part-time and casual work definitions. This also includes provisions for flexible work arrangements, reflecting the changing nature of work in the sector.
5. Disability Support Worker Provisions:
- Specific updates related to disability support workers have been made, acknowledging the unique challenges and requirements of these roles. This includes adjustments to pay rates and work conditions tailored to this group.
6. State-Specific Adjustments:
- The SCHADS Award includes state-specific changes, particularly for Victoria, Queensland, and New South Wales. These adjustments consider the regional variations in the industry, ensuring the award remains relevant and applicable across different states.
Implications of the SCHADS changes
The updates to the SCHADS Award clauses are not just administrative adjustments; they have real-world implications for the daily operations of organizations within the social, community, home care, and disability services sectors. Employers need to carefully review these changes to ensure that their business practices are aligned with the latest standards, while employees should be aware of their rights and entitlements under the updated award.
Understanding and implementing the SCHADS Award is key to supporting a fair and equitable work environment in the social and community services sector. As the industry continues to grow and evolve, staying informed and compliant with these rates and conditions is crucial for the success and sustainability of organizations within this sector.
Get expert advice for your SCHADS business
Peninsula has worked with several businesses in Australia who operate in the SCHADS sector. We have created factsheets, resources, tools, guides, and software for SCHADS businesses in Australia. We understand the challenges affecting your business and know small businesses need support and guidance for complicated awards and pay rates.
Whether you’re in Victoria, QLD, NSW, or any other part of Australia, our team of experts can provide you with the advice and solutions you need to ensure compliance and best practices in your workplace. Contact us to get all your questions answered.