The Federal government will provide $630 million to organisations in female-dominated sectors like health, disability and community services to implement wage rises for their workers.
This follows the Fair Work Commission’s ruling that five female-dominated industry awards would include wage rises, after it found this work had been historically undervalued because of gender-based assumptions.
The funding will go to over 128,000 organisations to support award-related wage rises for 460,000 health, disability and community services workers. Most of these workers are women.
The $630 million is designed to be spread over four years to help charities and non-profits meet the higher wages without cutting services.
“We cannot close the gender pay gap without confronting and addressing the historic undervaluation of work performed predominantly by women,” Minister for Women Katy Gallagher said.
“This move is also a clear signal that this workforce and the support they provide our community is important and valued.”
It comes after the federal government dedicated another $3.6 billion to top up the wages of early childhood education and care workers in June.
This new funding announced on Tuesday will also go to government-funded organisations that employ workers in other sectors affected by the award changes, like legal assistance workers, housing workers, youth workers, community development workers and First Nation community service workers.
“Behind every community service is a dedicated worker helping someone through one of the hardest moments of their life,” Social Services Minister Tanya Plibersek said.
“Whether it’s supporting a woman escaping violence, helping a family facing homelessness, or making sure someone has a warm meal and somewhere to turn, these workers change lives every day.”
Employment Minister Amanda Rishworth said funding these pay rises was what closing the gender pay gap looked like in practice.
“This Fair Work Commission decision is helping to address decades of gender-based undervaluation and deliver better wages for workers in health, disability and community services,” she said.