Significant pay rises for more than 150,000 community sector workers will aid in reducing the pay gap between males and females in a historic decision handed down by the workplace tribunal.

Female workers are expected to receive up to 40 to 65 per cent pay increase over the next eight years, once the award increases are instigated by Fair Work Australia. 

Prime Minister Julia Gillard said the decision is a ”significant advance for equal pay for women”.

The joint submission by the Gillard Government and Australian Services Union was backed by Fair Work Australia with the only difference being phasing the increases to eight years rather than the 6 years suggested. This was decided because they were ”concerned about the effect on the finances of a number of the states”.

Employer groups weren’t as welcoming to this decision, with Australian Industry Group chief executive Heather Ridout telling The Age the pay determination created ”huge risks” and ”will lead to a raft of union claims in other industries”.