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Pay Equity Progress Undone: People's Select Committee Urged To Back Bold Reform

Yesterday, Te Pai Ora Social Service Providers Aotearoa (Te Pai Ora SSPA) presented a submission to the People’s Select Committee, drawing on our direct experience with pay equity claims in the community-funded sector. The submission highlights both the progress made and the serious setbacks that now threaten to undo it.

The 2022/23 pay equity settlement for NGO social workers was a landmark achievement. With an average 27% pay increase, it changed lives, enabling workers to support their families, save for retirement, and be recognised on par with their government-employed peers.

But that success now stands in stark contrast to the cancelled claim for social service workers — tens of thousands of professionals left behind under new, restrictive criteria. Their work hasn’t changed. Its value hasn’t diminished. Yet their path to equity was erased when their claim was one of 33 cancelled under recent amendments to the Equal Pay Act.

The amendments compounded the damage done through a government-led overhaul of pay equity processes in 2024. It included the dismantling of the Funded Sector Framework, which had provided a structured pathway for funding equity settlements in the community sector. Its removal, along with tighter eligibility rules, has made it nearly impossible for underpaid workers to access fair pay.

Speaking to the amendments, Te Pai Ora SSPA Pay Equity Co-ordinator Brenda Pilott said: “We’re not asking to go back. We’re asking to go forward — with a reset that’s principled, practical, and informed by lived experience.” She explained that Te Pai Ora SSPA’s submission outlines an eight-part framework for reform: “We're calling for bold change to build a pay equity system that is fair and robust, but also workable.”

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“This is a moment to learn from experience and build on the momentum already created. We call on all stakeholders — across government, community, and sector — to take the next step toward meaningful, lasting reform,” said Te Pai Ora SSPA CEO Belinda Himiona.

The Te Pai Ora SSPA written submission, including the eight components can be read on our website here.

ABOUT SOCIAL SERVICE PROVIDERS TE PAI ORA O AOTEAROA | www.sspa.org.nz

Te Pai Ora SSPA is a membership-based organisation, representing more than 250 non-profit, community-based social service organisations from around Aotearoa New Zealand. Our member organisations are diverse, including small rural organisations, Iwi and kaupapa Māori service providers, Pacific providers, and large national children’s organisations. Our member organisations provide life-changing and often life-saving services and support in their communities.

Te Pai Ora SSPA’s full members are funded by government to deliver social services in our communities every day, with a predominant focus on children, rangatahi, families and whānau. Our affiliate members are organisations that deliver social services for these people, and organisations and individuals working in areas aligned to the interests of children, young people, whānau or communities.

Te Pai Ora SSPA’s vision is that Aotearoa New Zealand’s community-based social services are sustainable, making a positive impact every day in our communities and hapori, supporting children, young people and whānau to thrive now and into the future. Te Pai Ora SSPA works to strengthen Aotearoa New Zealand’s social sector through advocacy and engagement, learning and development, relationships and sector leadership.

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