Ageing, Disability & Home Care

  • High contrast version
  • Increase the text size
  • Decrease the text size
  • Print this page

Equal Remuneration Order Supplementation

The Equal Remuneration Order

On 1 February 2012, the Fair Work Commission (formerly Fair Work Australia) handed down its historic decision on the Australian Service Union's application for an equal remuneration order in the social and community services industry.

This decision affects workers who are employed under the Social, Community, Home Care and Disability Services Industry Award 2010 (SACS Modern Award). Specifically, the decision affects those workers classified under the following Schedules:

Schedule B – Classification Definitions - Social and Community Services Employees

Schedule C – Classification Definitions - Crisis Accommodation Employees

The Equal Remuneration Order (ERO) provides wage increases of between 23 and 45 per cent over the next 10 years. The first ERO supplementation payment was made in December 2012.

Supplementation

FACS is committed to passing on supplementation to eligible service providers to assist them to pay SACS workers a fairer wage.

Providers were asked in 2012 to confirm their eligibility for ERO supplementation payments. Providers should inform FACS if their circumstances have changed in regards to the SACS Award and eligibility for ERO.

In 2012 FACS also sought assurance from providers that supplementation would only be used to meet wage increases and any unexpended funds would be returned. This assurance still applies to all future supplementation payments.

Calculation of ERO supplementation

The method to calculate and pay ERO from 2015/16 onwards has been changed to make it simpler to understand and administer.

The methodology used for the past three supplementation payments, since 2012, replicated the financial model that informed the NSW and Commonwealth government’s decision to fund supplementation. The financial model allowed NSW to commit in FACS’ budget, over the ten years of the ERO, supplementation funding to assist service providers.

The new approach to pay ERO supplementation to providers is much simpler. A single rate will be used to pay supplementation, similar to the way indexation is paid. The supplementation rate will be derived from the supplementation funding allocated in FACS’ budget as a percentage of the total funding paid to service providers. The supplementation rate does not need to replicate the financial model because the model is already built into the funding allocated in FACS’ budget. It allows for a simpler distribution of supplementation funding to service providers.

How do I find out more information?

FACS Frequently Asked Questions on the ADHC website.

SACS Modern Award (PDF) from the Fair Work Commission.

The Fair Work Ombudsman website contains pay rate information and a pay rates calculator for workers on the SACS Modern Award.

share on facebook share on tweet share on yammershare by email
Back to: top | ADHC home page