SCHADS Pay Point Progression Explained
Every SCHADS classification level contains two to four pay points, and employees step up through them over time. Progression is an entitlement with specific award rules — not a discretionary pay rise — and missed anniversaries are a quiet, compounding form of underpayment. This guide covers the clause 13.3 rules, the special Level 1 hours-based rule, degree entry points, and what each step is worth at the current 1 July 2026 rates.
Quick Facts
- Progression rule
- 12 months + demonstrated competency (cl.13.3)
- SACS Level 1 → pp2
- 12 months FT or 1,976 hours PT (Sch B.1.3(d))
- L2.1 → L2.2 step
- +$1.14/hr (from 1 Jul 2026)
- 3-year degree entry
- Level 3 pay point 3 (Sch B.3.3(b))
- Higher level
- Only by promotion or reclassification (cl.13.3(b))
- Written advice
- Required at start and on any change (cl.13.2)
Tools & Resources
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SCHADS AI Assistant
Get instant answers to award questions.
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Timesheet Validator
Check timesheets for compliance.
Levels vs Pay Points: Two Different Ladders
The SCHADS classification structure has two dimensions that are often confused:
- Levels reflect the nature of the work — skill, responsibility, autonomy and qualifications. Moving up a level is a promotion or reclassification, and under clause 13.3(b) it can only happen that way: no amount of time served automatically moves someone from Level 2 to Level 3.
- Pay points sit inside each level and reflect experience at that level. Moving up a pay point is progression, and it is governed by clause 13.3(a).
The Progression Rule (Clause 13.3)
Under clause 13.3(a), at the end of each 12 months' continuous employment an employee is eligible to move to the next pay point within their level if they have demonstrated competency and satisfactory performance over that period, and either:
- they have acquired and satisfactorily used new or enhanced skills within the scope of their classification, where the employer required it; or
- the employer runs a staff development and performance appraisal scheme and has determined the employee performed satisfactorily over the prior 12 months.
The Special Level 1 Rule: 12 Months or 1,976 Hours
SACS Level 1 has its own progression mechanics under Schedule B.1.3(d). An employee doing Level 1 work progresses to pay point 2 on completion of:
- 12 months' industry experience if full-time, or
- 1,976 hours of industry experience if part-time (the hours equivalent of a year at 38 hours/week).
Qualification Entry Points
Qualifications set where someone enters the scale, not just how they progress:
- A relevant certificate is a standard prerequisite for Level 2 work (Sch B.2.3(b)).
- A relevant 3-year degree enters at Level 3 pay point 3 when doing work at that level (Sch B.3.3(b)(i)).
- A relevant 4-year degree enters at Level 4 when performing responsibilities at that level.
What a Pay Point Is Worth (1 July 2026 Rates)
Progression steps look small per hour and add up fast. SACS stream examples from the current FWO Pay Guide:
Because penalties and overtime are calculated on the ordinary rate, a missed progression also underpays every Saturday (150%), Sunday (200%), public holiday (250%) and overtime hour the employee works — a one-pay-point lag typically understates total pay by 3–4%, compounding each year the anniversary is missed.
| Step | Hourly | Increase | Full-time / year (38h) |
|---|---|---|---|
| Level 1.1 → 1.2 | $27.55 → $28.44 | +$0.89 | ≈ +$1,759 |
| Level 2.1 → 2.2 | $36.22 → $37.36 | +$1.14 | ≈ +$2,253 |
| Level 3.1 → 3.2 | $40.49 → $41.66 | +$1.17 | ≈ +$2,312 |
| Level 4.1 → 4.2 | $46.70 → $47.92 | +$1.22 | ≈ +$2,411 |
Because penalties and overtime are calculated on the ordinary rate, a missed progression also underpays every Saturday (150%), Sunday (200%), public holiday (250%) and overtime hour the employee works — a one-pay-point lag typically understates total pay by 3–4%, compounding each year the anniversary is missed.
Employer Obligations and Common Failures
Clause 13.2 requires employers to advise classification in writing at commencement and on every change — including pay point movements. The failures we see most in payroll audits:
- No anniversary tracking at all — employees sit on their starting pay point for years. This is the single most common progression failure.
- Hours-based progression not tracked for part-timers — the 1,976-hour Level 1 rule needs cumulative hours, not calendar time.
- Prior industry experience ignored — both for Level 1 progression and for entry pay points.
- Progression "frozen" informally — without a documented performance basis, the entitlement stands.
- Back-pay calculated on ordinary hours only — remediation must recompute penalties, overtime and allowances that key off the ordinary rate.
Watch This Space: October 2026 Reclassification
The FWC's gender-based undervaluation decision rewrites the home care classification structure (Schedule E) from 1 October 2026, with interim increases of around 15% for affected classifications — on top of the July 2026 Annual Wage Review. Providers with home care employees will need to map workers onto the new structure, which resets the level-and-pay-point question for that workforce. Our Schedule E overhaul guide covers what to do before October.
Keeping Progression Compliant
Progression compliance is a data problem: anniversary dates, cumulative hours, prior experience and written notifications, multiplied across a workforce. CrossVault's timesheet engine validates pay against the SCHADS rules at the rate the worker should be on, and our Job Classifier maps duties to the correct level and stream — so classification and progression errors surface before they compound.
Common Questions
Frequently Asked Questions
- Is SCHADS pay point progression automatic after 12 months?
- Effectively yes for a competent employee: clause 13.3 makes the employee eligible at each 12-month anniversary subject to demonstrated competency and satisfactory performance. It is an award entitlement, not a discretionary raise — an employer withholding it needs a documented performance basis.
- How does progression work for part-time SCHADS Level 1 employees?
- Part-time SACS Level 1 employees progress to pay point 2 after 1,976 hours of industry experience (Schedule B.1.3(d)) rather than 12 calendar months. Industry experience includes relevant work over the previous 3 years, including with other employers.
- Can an employee move from Level 2 to Level 3 through progression?
- No. Pay point progression only moves employees within a level. Movement to a higher level occurs only by promotion or reclassification (clause 13.3(b)) — typically because the duties have changed to match the higher level's descriptors.
- What pay point does a degree-qualified worker start on?
- A relevant 3-year degree enters at Level 3 pay point 3 ($42.55/hr from 1 July 2026) when performing Level 3 work; a relevant 4-year degree enters at Level 4. Starting graduates at pay point 1 is a common and expensive entry-point error.
- How much is a missed pay point worth?
- At 1 July 2026 rates, one pay point is worth roughly $0.89–$1.25 per ordinary hour depending on level — about $1,800–$2,400 a year full-time before penalties. Because weekend, public holiday and overtime rates multiply the ordinary rate, the true underpayment is larger.
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