Pay equity

The Equal Pay Amendment Bill has now passed in Parliament on Wednesday 7 May and will become law at a date to be confirmed but likely during the week beginning 12 May 2025. This means the Social Service Workers pay equity claim has been discontinued.

The Social Workers Pay Equity settlement is not affected with the exception of the review provisions. Read the briefing paper below for more details.

This law change to the Equal Pay Act is a very unwelcome development for our sector. Te Pai Ora SSPA will be talking to the PSA and others involved in pay equity claims to consider what can now be done to address the issues for our social service workforce.

If you want any further information, please contact our pay equity co-ordinator at brenda.pilott@outlook.co.nz.

This template has been developed for employers to implement as a proposed variation to existing employment IEA and CEA terms – or for revised template Employment Agreements for new Employees since July 2023. If you have any questions about how to apply it, please contact our pay equity coordinator, Brenda Pilott, in the first instance.

If you would like a Word version of this document please email Sarah Fullarton-Boyce. 

On 25 October 2022, Cabinet approved and funded settlement of the PSA’s pay equity claim against five representative employers of community-based social workers. The pay equity settlement addressed the undervaluation of ‘workers performing social work’ at Barnardos, Christchurch Methodist Mission, Ngāpuhi Iwi Social Services, Stand Tū Māia and Wellington Sexual Abuse Help, the five organisations that the claims were lodged against. 

The settlement introduced a new pay structure with a 15-step scale. A single pay ‘spine’ covers all roles within the scope of the PSA’s pay equity claim, with pay bands reflecting different categories of work.

The pay scale is aligned to pay rates for social workers at Oranga Tamariki, as the comparator organisation. The average increase across the claim is significant, at 36%.

In line with the Oranga Tamariki approach, progression through the pay bands will be on the basis of time and experience in the roles covered by the settlement. The settlement also includes funding to cover costs of social worker registration, professional development and supervision.

SSPA, together with the PSA and the five organisations the social work claim was lodged against, has always been clear: any settlement reached must be for all community-based social work kaimahi. So we strongly welcomed the Government’s historic announcement on 24 November 2022, that a pay equity extension would happen for all community-based social work roles throughout Aotearoa New Zealand, extending the terms of the settlement in the claim to all people in social work roles who are working in the community, across Iwi, Kaupapa Māori, Pacific and NGO social service organisations.

"This is a major win for our community-based social services. This will make a tangible difference for tauwhiro, and strengthen their work with children, rangatahi and whānau. The decision sends a strong message that the essential mahi of social work is valued and recognised."
- Dr Claire Achmad, SSPA CEO, 24 November 2022, at the announcement of the pay equity extension at Parliament

From late 2022 to early 2023, community-based employers of people in social work participated in one of the largest data collection processes that has ever happened across the social sector, to inform the quantum and scope of the pay equity extension. Te Kawa Mataaho The Public Service Commission led this mahi, with the support of the PSA and SSPA. The strong, collective effort of employers and kaimahi across our community-based social services led to the pay equity extension being confirmed by Cabinet in June 2023, and the new pay rates for the social work roles covered by the extension are effective from 01 July 2023, meaning pay equity for over 5000 social work kaimahi – an amazing outcome to be celebrated!