The Fair Work Commission has announced plans to phase out junior pay rates for young adults within certain highly-populated industries.
The changes will see entry-level employees aged 18-20 in the retail, fast food, and pharmacy industries receiving adult pay rates without the existing junior discounts.
Currently, the three awards pay 90 per cent of the adult rate for 20-year-olds, 80 per cent for 19-year-olds, and 70 per cent for 18-year-olds, with even higher discounts for employees under 18.
Source: Fair Work Ombudsman, General Retail Industry Award 2020, Pharmacy Industry Award 2020, Fast Food Industry 2020
The decision follows an application by the Shop, Distributive and Allied Employees’ Association (SDA) last year advocating for increased pay rates for employees aged 20 years and under, working within the awards.
Albion Park retail worker Samuel Gray, 18, said young adults are not barred from difficult economic circumstances, and can be impaired by a junior rate discount.
“People have really tricky situations in life where at a young age they’re forced into adult situations like living by themselves or caring for family members … all by the age of 18 and 19,” he said.
“I have many friends that bust their arse off all the time at work, and they’re bouncing between renting and being homeless while trying to look after a family.”
Mr Gray said that while the rate increases will put pressure on local businesses, the change is an important step forward for young people.
“I think it could be very challenging for small businesses, especially where I work, it’s just two people running the whole business,” he said.
“I think it’s a necessary change. It would be a difficult change, but it is beneficial for the younger generation of Australia in becoming adults.”
Source: Australian Bureau of Statistics
Approximately 284,000 employees, 19 years or younger, worked in the retail trade industry as of December 2025, accounting for roughly 18.5 per cent of the entire industry workforce.
Meanwhile, over the last 10 years the demographic has remained between four and five per cent of the industry’s total compensation, a relatively stagnant figure that will likely shift with the removal of junior rates for young adults.
Following the landmark announcement, Fair Work Commission Deputy President Terri Butler said that in considering the changes, the commission examined how pay rates coincided with the needs of young people of varying ages.
“We have been particularly interested in the extent to which junior rates serve or do not serve the interests of children and young people,” she said.
“Young teenagers who are trying to get their first job usually wanting to balance work with secondary education, can benefit from being able to accept discount rates compared with older people doing the same job.”
The Fair Work Commission said the changes will be phased in over four years, increasing wages by five per cent annually until 2029.
