SCHADS Award changes: December pay increases and sleepovers
Employers using the Social, Community, Home Care and Disability Services Industry Award (SCHADS Award) have a December pay change to prepare for while checking that this year’s sleepover changes are already reflected in their rosters and payroll. Our October newsletter brought these developments together because each requires attention to the employees and working arrangements it affects.
Preparing for the December 2026 pay increase
Home care employees who provide disability care will receive an initial increase of up to 15% to their minimum award rates from the first full pay period starting on or after 1 December 2026. The Fair Work Ombudsman’s SCHADS update explains which employees are affected and provides access to the December pay guide, with most of the wider award changes commencing from the first full pay period starting on or after 1 October 2027.
Preparation should begin by confirming which employees fall within the affected home care disability classifications and checking the minimum rate for each role. The percentage increase varies, so payroll teams need to use the applicable classification and pay point when assessing the change required for an individual employee.
Once those checks are complete, employers can identify the first affected pay period and test the updated settings before they are used in a live pay run. Reviewing the budget impact at the same time gives managers an opportunity to plan for the change and explain any adjustments to employees before the new rates commence.
Checking employees covered by enterprise agreements
Employers with an enterprise agreement also need to consider the December increase because an employee’s agreement base pay rate cannot be lower than the base pay rate in the award that covers them. Fair Work’s guidance on agreements explains this requirement, which makes it important to compare affected agreement classifications with the corresponding award rates.
That comparison needs to be made against the actual agreement and the employee’s work, with any uncertainty about classification or the relationship between the instruments resolved before payroll changes are approved. The award pay guide provides a useful reference for the minimum-rate comparison, while the agreement remains relevant to the employee’s other entitlements.
Reviewing sleepover arrangements already in operation
The SCHADS sleepover changes took effect from the first full pay period starting on or after 1 June 2026, changing how work immediately before and after a sleepover is treated. Those periods form part of the same shift, and the sleepover itself does not count as the break between rostered shifts.
Where the employer and employee agree, a shift containing work immediately before and after a sleepover can include up to 12 ordinary working hours, with no more than eight ordinary hours on either side. The sleepover period is additional to those working hours, and the portions of work before and after it are considered separately when determining the relevant shift allowances.
A roster review should therefore follow the complete arrangement through to payroll, checking the employee agreement relied on, the hours recorded and the treatment of shift allowances and overtime. Rest breaks around the combined shift also need to be checked against the current SCHADS Award and any permitted agreement about the break length, with the overnight sleepover excluded when assessing that break.
Bringing the findings into everyday practice
Reviewing sleepover payments from the applicable June commencement date can help identify settings that were carried forward from the earlier rules. Where a discrepancy is found, the review should establish which employees and pay periods are affected, arrange any necessary corrections and document how subsequent pay runs will be checked.
The BelRose Group’s Payroll and Award Interpretation service can help employers review affected classifications and assess how award requirements are being applied in their systems. Contact our team to discuss preparation for December or concerns about your current sleepover arrangements.
Adapted from The BelRose Group’s October 2026 newsletter, with award information checked against Fair Work sources on 18 October 2026.
This article provides general information, and employers should obtain advice tailored to their applicable award or agreement and the circumstances of their workforce before taking action.