Some 150,000 low-paid community sector workers around Australia were awarded a pay rise by the industrial umpire on Wednesday in a landmark test case.

Fair Work Australia ruled that 150,000 workers in the community sector were paid less because the industry was dominated by women.

About 120,000 female workers will receive increases of up to $24,000 a year to address the pay imbalance.

The new community sector pay rates announced this week increase average salaries from $42,000 to $56,500.

Carers, social workers, youth workers, community development officers, lawyers and people assisting our society’s most vulnerable are covered by the decision.

Stacey Kontogianis, 34, lauded the pay rise for her job of two years as team leader of family services at Mallee Accommodation Support Program.

“It’s a win for the industry, not just for women, but it is disappointing that it will take eight years to reach the new pay scale,” she said.

“The pay increase is a bonus to my already attractive job which has flexible hours and a good level of respect.

“I oversee a team of seven staff who provide support to vulnerable children who are likely to come to the notice of child protection authorities.”

Ms Kontogianis, who is a single mum, said the extra money would aid the education of her son who started kindergarten this year.

MASP chief executive officer Doug Tonge said the pay increases were a win for the community sector.

“It brings parity to the sector and hopefully aids recruitment and retention of staff,” he said.

Australian Services Union assistant national secretary Linda White was jubilant, saying the decision would transform the lives of low-paid women and their families.

“We are not joking when we say it’s going to change people’s lives,” she said.

“People will be able contemplate buying things that they’ve never, ever in their lives thought they’d be able to afford – like a house.”