Occupational Therapy Peak Body Urges Vic Government
Media Release: Occupational therapy peak body urges Vic Government to address growing pay gap between OTs and nurses

Published: Tuesday 6 May 2025

Occupational Therapy Australia is urging the Victorian Government to follow through on the Fair Work Commission (FWC)’s provisional recommendation and address the growing pay gap between occupational therapists (OTs) and nurses working in the state’s public mental health services.

Under the current system Victorian nurses earn significantly more than OTs for the same work. This pay gap is unjustified and is contributing to high levels of dissatisfaction and burnout among the OT workforce.

On 16 April, the FWC handed down a provisional decision in its review of the Health Professions and Support Services 2020 Award. The FWC found gender-based undervaluation across the award and has recommended increases to minimum wage rates to address this issue.

Under the proposed changes, occupational therapists would see increased award rates that recognise their professional qualifications and experience, and address historical gender undervaluation. The FWC has suggested increases of award salaries across the board, and up to 30% for early career OTs.

Michelle Oliver, Chief Occupational Therapist from Occupational Therapy Australia says the public mental health system simply cannot afford to lose highly skilled and dedicated staff. “What we don’t want to see is people walking away from their career, or a system that cannot attract new staff due to rates that are insufficient for the quality of work and training required,” she said.

The Fair Work Commission is currently gathering feedback from unions and employers about the proposed changes, including potential costs and practical considerations. Feedback is due by 3 May, after which further discussions will take place before a final decision is announced.

The call also comes as public mental health workers are being asked to vote on the Victorian Government’s current pay offer, which proposes a 12 percent pay rise for OTs, compared to a 28 percent increase for nurses. Occupational Therapy Australia has heard from many members who feel excluded and undervalued by this decision.

“Occupational Therapists working in mental health settings play a vital role in helping people recover and live independently,” said Samantha Hunter, CEO, OTA. “They provide therapeutic support, work with people over the long term, and help manage complex mental health needs. Their work is essential to the system and deserves to be recognised and fairly paid.”

The current pay offer has caused serious concern across the OT community, with the potential for some OTs to earn almost $34,000 less per year than their nursing colleagues. Many are considering leaving the public system altogether. Workforce leaders have also raised concerns that important retention measures, such as professional development and improved conditions, were left out of the latest offer.

OTA members are concerned that there will be irreversible damage across the industry if the offer is to pass, with the loss of highly skilled staff. “What our members anticipate is that this offer creates significant challenges that will cause enduring and irreversible workforce shortages,” said Michelle.

Occupational Therapy Australia believes this pay gap is not only unfair, but also a risk to the future of the workforce. Victoria has made clear commitments to build a stronger and more diverse mental health system, especially in response to the Royal Commission into Victoria’s Mental Health System. The current EBA offer does not support those goals.

Mental Health Victoria has also raised concerns about the proposed agreement and its potential impact on reforms. In a recent statement, they called for stronger investment in the workforce and warned that the agreement could harm progress in delivering better care and more choice for people using mental health services.

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