NDS has set out a way forward for supported employment wages in its position paper: The future of wage setting in supported employment.

Wage rates in supported employment have been debated over recent years. There have been varied opinions on its fairness, equity and inclusion, and the Disability Royal Commission made a recommendation on the issue.

The Federal Government also developed the Guiding Principles for Supported Employment and has recently published the Commonwealth, State and Territory Supported Employment Plan.

The NDS position was developed in consultation with the NDS Industry Vision Reference Group, which includes a range of supported employment stakeholders such as advocates, supported employees, providers and sector experts.

Noting the complexities involved, the paper outlines considerations for the government to address the wage debate. It supports Australia's Disability Strategy 2021-2031, which promotes opportunities for people with disability to enjoy the benefits of being employed.

Our position paper proposes that supported employees should receive no less than full award wages. This would be through a social wage that combines the Disability Support Pension (DSP) and wages paid by supported employment providers, supplemented as necessary by government.

NDS is committed to ensuring that increased wages do not compromise the financial viability of employers, leading to reduced hours, job losses and service closures.

The paper also proposes that the government extend the Pensioner Work Bonus to people receiving DSP in paid employment. This would immediately boost the incentive to work and wages.

Background

The paper is based on the recognition that future wage setting arrangements in supported employment will be driven by two key factors:

• the Fair Work Commission’s (FWC) review of the SES Award 2020
• the Australian Government’s response to the recommendations of the Disability Royal Commission (DRC).

The FWC’s review of the SES Award led to significant changes to wage setting arrangements for employees with disability. From 1 July 2023, the Supported Wage System (SWS) is now the sole determinant of an employee’s rate of productive output.

The DRC made one recommendation on pro rata wages for employees with disability. From 2034, all employees with disability would be paid the minimum wage, with their rates raised from 2024 to at least 50 per cent of the minimum wage.

The DRC recommended the Australian Government subsidise employers the difference between existing wages and the new 50 per cent minimum in the interim.

Key points in the position paper

1. The Pensioner Work Bonus should be extended to people receiving DSP in paid employment.
2. Supported employees should receive no less than full award wages. This would be through a social wage that combines the DSP and wages paid by supported employment providers, supplemented as necessary by government.
3. The unique value of the supported employment sector to people with disability should be recognised. The sector should be supported to modernise and be financially sustainable. Equally, the work done by supported employees must be recognised, valued and supported through procurement policies of business and government.
4. Supported employees and their families should be involved in the future of their jobs through co-design.
5. There should be formal acknowledgement and recognition by all government-funded advocacy groups of the social wage model and the FWC’s formal endorsement of pro rata wages in Australia’s industrial relations legislation.
6. Supported employment providers lead the creation of work opportunities for people with significant and complex disability. They have the expertise in tailoring jobs and cultures for people with high support needs, so they are well-placed to provide opportunities within a range of employment settings. Outcome payments should create an incentive for transition placements of employees into mainstream settings.

Next steps

The paper will be presented to Minister Shorten and Minister Rishworth for consideration by the Australian Government as it responds to the recommendations of the DRC.