Written by Deepanshi Agarwal, Principal Lawyer

If you employ health and support service professionals, this is the guide for you. From 1 October 2026, significant changes to the Health Professionals and Support Services Award 2020 (HPSS Award) will take effect, creating new obligations for employers across the health sector. These changes are not merely minor modifications; they require employers to reclassify impacted employees and update contracts, records and payroll systems.

The new classifications must be implemented before an employee's first full pay period starting on or after 1 October 2026. For private practices, allied health providers, medical centres, pathology providers, diagnostic imaging organisations, mental health services and other healthcare employers, now is the time to start preparing.

Why are these changes happening?

The changes have arisen from the ‘Gender-Based Undervaluation – Priority Awards Review’ which was undertaken by the Fair Work Commission Expert Panel. The review found that many professional occupations covered by the HPSS Award had been historically undervalued.

The Commission has therefore introduced:

• A new professional classification structure
• Significant increases to minimum award rates
• Phased wage increases extended through to 2030
• New progression arrangements based on professional experience rather than tenure with a particular employer

What is changing?

1. New classification structure

One of the most significant changes is the introduction of a new classification framework for health professionals covered by the HPSS Award.

The old structure is being replaced entirely. Instead of pay points based on a broad level system, employees will now be classified and paid according to:

• Their qualification level (based on the Australian Qualification Framework);
• Their years of experience within their profession, including experience gained with previous employers; and
• Their duties, responsibilities, expertise and leadership requirements of their role

2. Higher minimum rates of pay

The minimum rate of pay for employees will increase commencing on the first full pay period on or after 1 October 2026. These increases will continue over five years with a further increase each 30 June from 2027 through to 2030.

These changes are part of a structural adjustment to the Award rather than the usual annual wage increase, so employers will need to factor the increases into their future budgets.

3. Existing employees cannot be disadvantaged

A key part of the Award changes is that existing employees cannot be negatively affected by the changes. Where an employee's current minimum pay rate is higher than the rate that would apply under the new structure, employers will be required to maintain the higher rate during the transition period

It does not mean that you can sit back and relax however. You will still need to work out the employee's correct new classification and minimum pay rate to ensure that you are complying with the Award changes.

4. Changes may impact enterprise agreements

The Award changes are not limited to award-reliant employers.

Health sector employers operating under enterprise agreements also need to review their agreement classifications and rates of pay to ensure they are compliant with the new minimums. Under the Fair Work Act, employees covered by an enterprise agreement cannot receive a base rate lower than the applicable modern award rate.

Which employers are affected?

The HPSS Award applies broadly across the health industry. You may be impacted if you are involved in:

• Medical services
• Dental services
• Allied health services
• Pathology services
• Mental health services
• Rehab and therapeutic services
• Healthcare support services

If you are affected, you will need to reclassify all affected employees and compare their current pay rate against the applicable minimum rate. If you aren't sure if your employees are affected, speak to Deepanshi today.

What do I need to do now?

Do not wait until the October pay run to review these changes. Gathering the information needed and making the changes will take some time, so it is important you get ahead of it now.

We recommend you:

• Identify all employees covered by the HPSS Award
• Gather evidence of qualifications and professional experience
• Review and document employee duties and responsibilities
• Determine appropriate classifications under the new framework
• Compare current pay rates to the new minimum rates and identify increases
• Update payroll systems and conduct testing to ensure they are implemented correctly
• Review employment contracts and position descriptions
• Communicate upcoming changes to employees
• Budget for further annual pay increases through to 2030

Maddens Lawyers can help

Our Employment Law team is already assisting health sector employers to prepare for the significant HPSS Award changes.

We understand that the changes may seem daunting, so we can help your organisation with:

• Award coverage assessments
• Employee classification reviews
• Employment contract updates
• Workforce planning and implementation strategies
• Fair Work compliance advice

The 1 October 2026 commencement date is quickly approaching. Contact Deepanshi and our Employment Law team today to discuss how the HPSS Award changes may affect your business and how you can ensure you remain compliant.