The Fair Work Commission (FWC) has released the Annual Wage Review decision announcing a 4.75% increase from 1 July 2026. 

This is in addition to the major changes confirmed in the decision on 26 May to the Health Professionals and Support Services Award. These changes have two main effects:

·       The classification levels for Health Professionals; and

·       The minimum pay rates applying to those classifications.

This is not just a normal annual wage increase.

For professions requiring university degrees, graduates will see around a 30% increase in minimum wages and experienced practitioners generally around 20-25%.

These adjusted rates will be phased in over 5 years. This means on average an increase of around a 5% each year will apply until the final rate is reached, plus whatever the minimum wage increase for that year. The staged increases required to reach the final rates will still occur each year, with further increases where applicable continuing from 1^st July in 2027, 2028, 2029 and 2030.

An important note – because the initial review includes reclassifications, the initial increase could be more than 5-10% for an individual employee this year. 

Why did the FWC decide to increase health professionals pay rates by 20-30%?

This decision comes from the FWC’s gender-based undervaluation review of 5 separate Awards, where they found that as a female-dominated industry the work of health professionals has been historically undervalued compared to male dominated industries.

In practical terms, this means the Award minimum rates had not properly reflected the qualifications, skills, responsibility, complexity and value of the work performed by Health Professionals.

What is changing for part time employees and how their experience is counted? 

An important note, that in the new classifications employees’ pay points will be based on total years experience – not pro-rata for part time. So for example, if an employee only has 3 years equivalent experience (1824hrs x 3), but has gained that experience over 4 years, they are now considered to have 4 years experience. 

This is a substantial variation from the current system, and while it will make it much simpler to determine pay points, it may also substantially increase an employee’s minimum pay rate if they are only working part time in your business and have less than 7yrs experience. 

The FWC specifically stated they made this change so as not to disadvantage those who work part time, who are predominantly women with child caring responsibilities. 

What are the new rates from 1 July 2026? 

Between 1 July and 30 September 2026 the current classifications will apply, with minimum wages being the current rates plus 4.75% increase. 

Instead of just checking if your rates need changing from 1 July and then having to do the reclassifications and pay reviews again from 1 October, we highly recommend doing this activity once. 

This means checking:

• your current classification rates from 1 July 2026
• your new Health Professional classification rates from 1 October 2026

Below is a brief summary of the hourly rates  from 1 July: 

Health Professionals – Level 1
	PP1	PP2	PP3	PP4	PP5	PP6
Hourly Rate from 1st July	$30.89	$32.10	$33.51	$34.66	$37.76	$39.10
Health Professionals – Level 2
	PP1	PP2	PP3	PP4
Hourly Rate from 1st July	$39.31	$40.75	$42.30	$43.98

Health Professionals – Level 3
	PP1	PP2	PP3	PP4	PP5
Hourly Rate from 1st July	$39.31	$40.75	$42.30	$43.98	$52.19

Health Professionals – Level 4
	PP1	PP2	PP3	PP4
Hourly Rates from 1st July	$55.57	$59.30	$64.48	$71.19

What Pay Rates will Apply from 1 October 2026:

From the first full pay period on or after 1 October 2026, the new Health Professional classification structure and first-stage rates will apply.

Below is an example of the pay rates that will apply to AQF 7+Years positions from 1 October 2026, after incorporating the 4.75% increase taking effect from 1 July: 

Please download our Pay Rate Guide for a full list of all rates for the different AQF levels.

New Classification(7+Yrs Experience)	Hourly Rate from 1 October 2026
AQF5 – Diploma	$40.56
AQF6 – Advanced Diploma	$43.66
AQF7 – Bachelor Degree	$44.46
AQF8 – Honors Degree	$45.30
AQF9 – Masters	$46.18
Level 2.1	$51.19

Will practitioners be classified by their profession or their actual qualification?

Many allied health professions have different university pathways into the same profession so one of the big issues during the review process was whether employees should be classified by:

• the qualification they personally hold; or
• the standard minimum qualification required for their profession.

Based on client feedback, in our submission to the Fair Work Commission, we supported classifications being set by profession to ensure there is not inequality between practitioners doing the same job simply because of their university pathway.

Thankfully, the final decision mostly reflects the profession-based approach for most allied health professions.

Unfortunately, they made some exceptions, so there is some inconsistency between a few professions. For example, Speech Pathology and Dietetics have multiple AQF levels listed, so the employee’s actual qualification may be relevant.

What is the AQF Framework and how will my practitioners be classified?

The Australian Qualification Framework (AQF) is a standard relating to formal qualifications in Australia. The table below summarises common professions my clients employ:  

Profession	Australian Qualification Framework (AQF) Level
Remedial Massage	AQF Level 5 – Diploma
Myotherapy	AQF Level 6 – Advanced Diploma
Physiotherapy, Exercise Physiology, Occupational Therapy, Podiatry	AQF Level 7 – Bachelor Degree
Psychology, Chiropractic, Osteopathy	AQF Level 9 – Masters Degree
Speech Pathology, Dietitian	AQF Level 7, 8 or 9

Note: This is not a complete list – if you have other health professionals not listed above, please check the Award or get in touch with us for assistance.

Do my health professionals who are currently Level 2 stay or drop back to Level 1?

This needs careful review.

Unlike the current system, employees do not automatically progress to Level 2 unless they are performing Level 2 duties.

Some employees who are currently Level 2 under the old structure may translate into Level 1 under the new structure unless they actually perform the new Level 2 duties.

For example, an experienced physiotherapist who manages their own caseload but does not supervise others, perform specialist work, or hold a formal Senior Clinician / Supervisor / Educator role may be classified as: AQF7 – 7+yrs experience.

Note – just because you use a “Senior” title internally, does not mean they fit the Level 2 description.

This is why employers should not simply roll current classifications across. You need to review the employee’s profession, AQF level, experience and actual duties.

The translation rules and retained minimum rate provisions are also important because an employee’s minimum rate may need to be the higher of their translated classification rate to make sure their pay does not drop.

Can you show me an example of how my employees would be classified? 
The below shows an example of different experience levels and pay points. 

Example Role	Experience Level	Current Classification	New Classification
Remedial Massage Therapist	3 years full time experience / 6yrs since graduating	Level 1, Pay Point 4	AQF5 – 4-6 Years
Exercise Physiologist	Graduate	Level 1, Pay Point 2 (3yr degree)	AQF7 – 1st Year
Physiotherapist	Graduate	Level 1, Pay Point 3 (4yr degree)	AQF7 – 1st Year
Occupational Therapist	3 years full time equivalent experience / 4 years since graduating	Level 1, Pay Point 6(4yr degree + 3yrs FTE experience)	AQF7 – 4-6 Years
Chiropractor	6 years experience full time	Level 2, Pay Point 4(Masters + 6yrs experience)	AQF9 – 7+ Years

How much do I need to budget for wage increase in 2026?

From 1 July 2026 to 30 September 2026, current classifications will continue to apply, with the rates being the current rates + the FWC Annual Wage Review increase – which is 4.75% this year. 

From the first full pay period on or after 1 October 2026, the new Health Professional classification structure and first stage rates will apply. See below example summary or increased rates, which on average may be 10-20% higher than the current rate. 

Example role	Example Current Classification	Previous hourly rate FY25/26	Hourly Rate 1 July to 30 September	New classification from October 2026	New hourly rate from October 2026
Remedial Massage Therapist – graduate	L1, PP1	$29.49	$30.89	AQF5 – 1st year	$32.44
Remedial Massage Therapist – 7+yrs	L2, PP1	$37.53	$39.31	AQF5 – 7th year+	$40.56
Myotherapist – graduate	L1, PP1	$29.49	$30.89	AQF6 – 1st year	$32.44
Myotherapist – 7+yrs	L2, PP1	$37.53	$39.31	AQF6 – 7th year+	$43.66
Physio / OT / Exercise Physiologist – graduate	L1, PP2	$30.64	$32.10	AQF7 – 1st year	$34.44
Physio / OT / Exercise Physiologist – 7+yrs	L2, PP2	$38.90	$40.75	AQF7 – 7th year+	$44.46
Chiro / Osteo / Psychologist – graduate	L1, PP4	$33.09	$34.66	AQF9 – 1st year	$38.02
Chiro / Osteo / Psychologist – 7+yrs	L2, PP4	$41.99	$43.98	AQF9 – 7th year+	$46.18
Team Leader	L2, PP4	$41.99	$43.98	Level 2.1	$51.19

Want a full breakdown of rates for all classifications for permanent and casual employees and an overview of the staged increases from 2026–2030? Download our free HPSS Award Pay Rate Guide 

What are the new pay rates for Senior Clinicians, Supervisors and Clinical Leads?

Similar to the current Award, there are still higher levels for Health Professionals. However, the definitions have changed.

In most private allied health clinics, you will likely have primarily Level 1 clinicians. If you have team leaders, they are likely Level 2 Supervisors.

Some businesses may also have Level 2 Specialist Clinicians, but you should not automatically assume someone becomes Level 2 simply because they have more than seven years’ experience or have a “Senior” title. 

Most small clinics will not have Level 3 roles unless someone has been formally appointed into a genuine Advanced Clinician, Clinical Lead or Section Manager role with broader responsibility than day-to-day supervision.

Below is a summary of the Level descriptors and the first-stage 2026 rates.

Classification	General description
Level 2.1	Senior Clinician, Specialist, Supervisor or Educator with less than 5 years performing Level 2 duties. May involve specialist knowledge, advanced practice, clinical guidance, supervision, education or day-to-day oversight.
Level 2.2	Senior Clinician, Specialist, Supervisor or Educator with 5 years or more performing Level 2 duties.
Level 3	Advanced Clinician, Senior Specialist or Section Manager. More likely where there is broader clinical leadership, section management, service responsibility or higher-level accountability.
Level 4	Manager. More likely where the role has significant management, resource, budget, strategic or service delivery responsibility.

What actions should I take to get ready for changes to the Health Professionals Award?

If you don’t already have this information documented, we recommend creating a list of all employees that includes:

• Position title
• Year their qualification was obtained
• How much experience they have in calendar years – not full time equivalent, actual total years of experience
• Their current classification
• Their current pay
• If they are paid bonuses or commissions, how much they have been paid in the last 12 months
• How much revenue they have generated in the last 12 months

If you have employees in professions where multiple AQF levels are listed, such as Speech Pathology or Dietetics, you will also need to confirm the qualification they hold.

This is the kind of information we use with clients to work out revenue and wage cost projections, review pay structures and design practical performance metrics for the team.

You should also make sure your position descriptions are clear so you can determine whether employees are Level 1, 2, 3 or 4 under the new structure.

This is particularly important for employees who are currently classified as Level 2. Under the new structure, they may only be Level 1 unless they are genuinely performing the duties of a Senior Clinician, Specialist, Supervisor or Educator.

I also often see clinics over-inflating classifications because they want to pay an employee a higher rate. You don’t need to do this – you can simply pay above the Award.

Why this matters for allied health businesses

For clinics that already pay well above the Award, the immediate impact of these changes may be limited. However, this does not mean the changes can be ignored.

Employers still need to classify employees correctly and make sure employment contracts, salaries, payroll systems and position descriptions are aligned to the new structure.

For clinics that pay close to the Award, or use base wage plus bonus or commission structures, the impact may be much more significant.

In my view, the biggest risk is not just underpayment. It is businesses waiting too long to model the commercial impact, then trying to make rushed pay structure decisions close to the implementation date.

My recommendation: 

Do not wait until September.

Start by mapping your team into the new structure and modelling what your wage costs may look like over the full transition period, not just from October 2026.

You may also need to review your incentive or commission structure. If base wages increase over time, the same commission model may no longer be feasible.

In some cases, the right answer may be a redesigned remuneration structure that is still compliant, fair and commercially sustainable.

The clinics that handle this best will be the ones that review classifications, pricing, productivity and profitability together, not in isolation.

How do I get help working out classifications and pay rates and reviewing my bonus structures?

We are super happy to help – this is our jam! We love numbers and understand the Award implicitly.

We specialise in HR for allied health businesses and help clinic owners understand Award obligations, classify employees correctly and design wage structures that are compliant and commercially sustainable.

If you would like help reviewing your team’s classifications, wages and incentive structure, book a call here: