From 1 October 2026, significant changes to the Health Professionals and Support Services Award 2020 (HPSS Award) will be introduced. The changes will substantially change how health professionals are classified and paid.
This Award covers occupations such as physiotherapists, psychologists, OTs, counsellors etc. It also covers health support staff (such as receptionists and Practice Managers), though at this stage these changes are impacting professional rather than administrative employees.
The changes follow a Fair Work Commission review which found that minimum rates for health professionals had been affected by gender-based undervaluation. A new classification structure and higher minimum rates are being introduced, with pay increases phased in over five years.
For employers of allied health professionals this is a change to start preparing for now.
What’s changing
The existing classification and pay-point structure for health professionals is being replaced with a new system which places greater emphasis on:
- the Australian Qualifications Framework (AQF) level required for the profession;
- the employee’s years of experience in their profession (not just with the current employer); and
- for more senior classifications, the nature and level of responsibility of the role, including specialist, supervisory and managerial responsibilities.
Importantly, professional experience isn’t limited to how long someone has worked for your business. Relevant experience gained with previous employers also counts.
This means employers will need to establish each employee’s qualifications and total professional experience to determine where they sit within the new structure, and advise employees of their new classification level.
What about pay rates?
Minimum Award rates are also increasing – and for some employees the increase will be significant.
From 1 October 2026, for example:
- an AQF Level 7 health professional – which includes professions such as physiotherapy, occupational therapy and podiatry – will have minimum rates ranging from $32.88 per hour for a first-year professional to $42.44 per hour at seven or more years’ experience; and
- an AQF Level 9 health professional – including professions such as psychology, audiology and chiropractic – will have minimum rates ranging from $36.30 to $44.09 per hour, depending on experience.
The increases aren’t happening all at once. The first stage applies from the first full pay period on or after 1 October 2026, followed by further increases on 30 June each year from 2027 through to 2030.
These increases are part of a structural adjustment to the Award rather than simply the usual annual Award wage increase, so employers will need to factor the staged increases into future wage budgets.
What this means for employers
This isn’t simply a matter of updating the hourly rates in your payroll system.
Employers will need to reclassify all affected employees under the new structure first, and then check the applicable minimum rate for that classification level / person.
Even if you already pay employees above the Award, don’t assume you’re covered. You’ll still need to work out the employee’s correct new classification and compare their actual rate against the new Award minimum.
The changes may also affect employment contracts, position descriptions, salary arrangements and the rates you offer when recruiting new employees.
What you should do now
A practical approach is to:
- Identify your health professional employees covered by the HPSS Award.
- Confirm their qualifications and applicable AQF level.
- Establish their total years of professional experience, including experience gained before they joined your business.
- Review their actual duties and responsibilities, particularly for employees performing specialist, supervisory or management functions.
Closer to the effective date, and once the updated Award and pay rates are published, you should:
- Map each employee to the new classification structure.
- Compare current pay rates against the new minimum rates applying from 1 October 2026 and identify any increases required.
- Advise them of their new classification level and pay rate (if an increase applies).
- Review contracts and position descriptions where they refer to Award classifications or rates.
- Budget for the further staged increases through to 2030.
The key message: don’t wait until the October pay run to look at this. Gathering qualification and employment history information and correctly reclassifying employees may take some time – particularly where you have a larger number of employees impacted by these changes.
You can find further information about the changes here Decision [2026] FWCFB 123, noting that the Award and Pay Guides on the Fair Work Ombudsman site have not yet been updated.
Need help making sure you’re on track?
HR Success helps small and medium businesses make Award compliance practical and manageable. If you’d like support confirming Award coverage, checking classifications, or understanding what this change could mean for your business, please reach out.
This article includes general information only; it is not formal or legal advice. If you’re unsure about Award coverage, classifications or how the changes apply to your employees, seek advice based on your particular circumstances.
