The 4.75% SCHADS Increase: What It Means

Chris O • June 4, 2026

Every year, social care organisations across Australia wait for one key announcement that can significantly impact their workforce budgets, service delivery models and recruitment strategies.


But First, What Does SCHADS Stand For?


SCHADS stands for the: Social, Community, Home Care and Disability Services Industry Award - If you work in disability, community services, home care or social support, you've probably heard of the SCHADS Award. It's one of Australia's largest modern awards and sets the minimum employment conditions for hundreds of thousands of workers across the social care sector.

The award is overseen by the Fair Work Commission and establishes the minimum standards employers must meet when employing eligible workers. Following the Fair Work Commission's 2026 Annual Wage Review decision, a 4.75% increase to SCHADS Award wages has been confirmed, with the new rates taking effect from the first full pay period on or after 1 July 2026.


For employers across the social care sector, attention is now turning to workforce planning, compliance and budgeting for the new financial year.


It covers employees working in areas such as:

  • Disability support
  • Community services
  • Home care
  • Youth services
  • Family support
  • Crisis accommodation
  • Social and community programs


And it's not just base pay that may change. Any increase can also impact:

  • Weekend penalties
  • Casual loadings
  • Overtime rates
  • Public holiday payments
  • Sleepover and shift allowances


Industry Insight

"As a recruiter working closely with the NFP sector, I welcome the 4.75% SCHADS increase. Better pay will help attract and retain the incredible people who dedicate their careers to supporting others. But many leaders are already asking the same question: where will the additional funding come from? The success of this change won't be measured by wage growth alone, but by whether organisations are given the resources to sustain it."

- Greg Forster (Senior Recruitment Specialist | Talent Quarter, 25+ years' experience recruiting leaders across the welfare, community, disability, aged care and mental health sectors).


What Does This Mean for Employers?

For providers across healthcare, disability and community services, staying on top of award changes is critical. Now is the time to:

✔ Review employee classifications

✔ Check payroll systems are up to date

✔ Budget for increased labour costs

✔ Ensure compliance across your workforce


Getting it wrong can create significant compliance risks. But, getting it right helps protect both your organisation and your employees.


The Bottom Line

The SCHADS Award isn't just about wages. It's a key part of workforce compliance, employee retention and operational planning across Australia's care sector. With the wage increase now confirmed, organisations that prepare early will be best placed to manage costs, remain compliant and continue attracting quality talent in an increasingly competitive market.


Need Support Navigating Workforce Changes?

Whether you're preparing for SCHADS Award updates, planning for workforce growth, or looking to strengthen your recruitment strategy, having the right people in place has never been more important.


At Talent Quarter, we partner with healthcare, disability, aged care and community service organisations across Australia to help solve workforce challenges before they impact service delivery. From permanent recruitment and workforce planning to sourcing hard-to-fill talent, our team understands the unique pressures facing the care sector.



If you're reviewing your workforce needs for the new financial year, we'd love to have a conversation.


 Get in touch with our Talent Quarter team to discuss your hiring goals, workforce challenges and talent needs.


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