SCHADS Award Pay Guide 2026: Minimum Rates, Allowances and Employer Obligations
Important SCHADS update: Schedule E pay increase delayed to 1 December 2026
The Fair Work Commission has confirmed that the first phase of increases for employees covered by Schedule E of the SCHADS Award will apply from the first full pay period on or after 1 December 2026, rather than 1 October 2026. The initial increase is up to 15%, with any remaining increases applying from the first full pay period on or after 1 October 2027.
The new integrated classification structure is also scheduled to apply from October 2027.
Separately, SCHADS Award minimum rates increased from the first full pay period on or after 1 July 2026 following the Fair Work Commission's Annual Wage Review.
Employers covered by the SCHADS Award should review their payroll systems, employment classifications and pay practices to ensure employees continue to receive their correct entitlements.
Download the current SCHADS Award Pay Guide >
What is the SCHADS Award?
The Social, Community, Home Care and Disability Services Industry Award 2010 [MA000100], commonly known as the SCHADS Award, sets out minimum employment conditions for many employees working in the social and community services, disability, home care and crisis accommodation sectors.
It covers important employment conditions including:
minimum wages and classification rates;
allowances;
overtime and penalty rates;
broken shift arrangements;
sleepover provisions;
overtime and time off in lieu;
leave and other workplace entitlements.
Employers must ensure employees are correctly classified and paid in accordance with the applicable award requirements.
What changed under the SCHADS Award in 2026?
There are several important SCHADS Award changes to be aware of in 2026.
Annual Wage Review increases
From the first full pay period on or after 1 July 2026, SCHADS Award minimum rates and allowances increased following the Fair Work Commission's Annual Wage Review.
Employers should check that:
employee pay rates have been updated;
payroll systems reflect the new rates;
allowances and penalties have been reviewed; and
employees remain correctly classified under the Award.
Schedule E disability care pay increase
The Fair Work Commission has also confirmed changes to minimum rates for employees covered by Schedule E – Home Care, Disability.
The first phase of the increase, which was originally scheduled to apply from 1 October 2026, will instead apply from the first full pay period on or after 1 December 2026. The initial increase is up to 15%, with the remaining increases applying from the first full pay period on or after 1 October 2027.
Employers with affected employees should use the additional preparation time to review classifications, payroll settings and the impact on employment costs.
Temporary vehicle allowance increase
The SCHADS Award vehicle allowance also increased temporarily from $1.01 to $1.05 per kilometre from the first full pay period on or after 1 September 2026.
This temporary increase applies for six months and ends on 28 February 2027.
Employers should check whether the temporary increase applies to employees who use their own vehicle for work and ensure payroll systems and reimbursement processes reflect the applicable rate.
Sleepover changes
Changes to SCHADS Award sleepover provisions also took effect from the first full pay period on or after 1 June 2026.
The changes affect arrangements including ordinary hours of work, rest breaks between rostered work, and shift allowances and penalty rates for shifts involving a sleepover.
Employers should review their rostering and payroll practices to ensure sleepover arrangements are being managed in accordance with the current Award.
Read SCHADS Sleepover Changes: What Employers Need to Know >
More SCHADS changes are coming in 2027
The 2026 changes are not the end of the SCHADS Award changes.
The Fair Work Commission has confirmed that the remaining changes arising from its gender-based undervaluation review will apply from the first full pay period on or after 1 October 2027. These include a new integrated classification structure and further changes to minimum pay rates.
Employers should consider the lead-up to 2027 an opportunity to understand how the new classification structure may affect their workforce, payroll and employment arrangements.
Why SCHADS Award compliance matters
SCHADS Award compliance can be complex due to the range of classifications, allowances and working arrangements across the sector.
Common payroll risks include:
employees being paid under the wrong classification;
incorrect allowance payments;
missed overtime or penalty rates;
incorrect treatment of sleepovers or broken shifts;
outdated employment contracts or payroll settings; and
payroll systems not reflecting changes to Award rates and conditions.
Regular reviews can help employers identify and address issues before they become costly underpayment problems.
Frequently asked questions
When do the 2026 SCHADS Award pay increases apply?
SCHADS Award minimum rates increased from the first full pay period on or after 1 July 2026 following the Annual Wage Review.
For employees covered by Schedule E – Home Care, Disability, the first phase of additional increases will apply from the first full pay period on or after 1 December 2026, rather than 1 October 2026. The initial increase is up to 15%. Further increases will apply from the first full pay period on or after 1 October 2027.
Employers should check the applicable Award rates and update payroll systems from the relevant effective date.
Is there a SCHADS Award vehicle allowance increase in 2026?
Yes. The SCHADS Award vehicle allowance temporarily increased from $1.01 to $1.05 per kilometre from the first full pay period on or after 1 September 2026.
The temporary rate applies until 28 February 2027.
Who is covered by the SCHADS Award?
The SCHADS Award applies to many employees working in sectors including:
disability services;
social and community services;
home care;
crisis accommodation;
family services; and
community support services.
Coverage depends on the nature of the work performed and the employer's industry.
How do I know if my employees are paid correctly under the SCHADS Award?
A payroll compliance review can help identify whether employees are:
classified correctly;
receiving the right rates;
being paid applicable allowances;
receiving correct overtime and penalty entitlements; and
being paid correctly for specific working arrangements such as sleepovers and broken shifts.
Workplace Plus can assist employers with SCHADS Award reviews, payroll compliance and workforce guidance.
Need help with SCHADS Award compliance?
Workplace Plus helps employers navigate complex employment obligations, including SCHADS Award interpretation, payroll compliance reviews and workforce support.
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