Fair Work Commission to phase out junior rates for young adults
Big changes are coming for retailers, fast food operators and pharmacies.
The Fair Work Commission confirmed significant changes to junior rates under the General Retail, Fast Food and Pharmacy Awards.
Junior rates (being a percentage of the adult rate for employees under 21) will no longer apply indefinitely to employees aged 18 to 20. Instead, these employees will move to the full adult rate after six months’ service with the same employer.
Who is impacted?
The decision will affect businesses who employ juniors between 18 – 20 years old, covered by these Awards:
- General Retail Industry Award 2020
- Fast Food Industry Award 2020
- Pharmacy Industry Award 2020
What is changing to junior rates?
The Commission found that adult junior employees often perform the same work as other adults, and that paying them lower rates was not fair or reflective of the value of their work.
- Junior rates will no longer apply indefinitely to employees aged 18 to 20.
- Instead, these employees will move to the full adult rate after six months’ service with the same employer.
The Commission has indicated that the changes will be phased in gradually, with staggered increases to the junior rates for this group starting from 1 December 2026 to eventually bring it in line with the adult rate, by 1 July 2029.
The commencement date and timeline of implementation is still to be confirmed by the Commission.
Changes will be introduced from 1 December
What is not changing?
Pay rates are not changing for:
- juniors under 18
- juniors aged 18–20 in their first 6 months with an employer
- Apprentices and trainees
- Juniors under other awards
What should employers do now?
- Start identifying affected employees
- Ensure processes are in place to track length of service and when pay increases are due
- Plan for potential increases in labour costs over time
Most importantly, stay up to date: Employers should monitor updates via the Fair Work Commission and Fair Work Ombudsman websites as further details are announced.
