Junior wages abolished for adult workers

Described by unions as “up there with the introduction of equal pay for women”, the Fair Work Commission has scrapped junior wages for 18- to 20-year-olds under three awards.

On Tuesday (31 March), the Fair Work Commission ruled that employees aged 18 to 20 will receive minimum wages in line with adult employees by 1 December 2026.

The case was initially pushed by the Shop, Distributive and Allied Employees Association (SDA) last year, and it commenced the successful proceeding on 27 October 2025, in a case that saw submissions from numerous unions and employer associations.

Adult workers paid junior rates under three awards will benefit: the General Retail Industry Award 2020, the Fast Food Industry Award 2020, and the Pharmacy Industry Award 2020.

According to unions and employer associations, 1.5 million workers are employed in these industries, many of them under the age of 21, with 500,000 workers in retail being under the age of 24.

In its 31 March 2026 decision, the commission has enacted a buffer period following its judgment, during which it will hear from parties on timing and transitional arrangements before giving effect to the decision.

It is considered that the change could be introduced over a period of up to four years with increments of 5 percentage points, in intervals of around six months, to “smooth potential impacts on young people and the businesses that offer them employment opportunities”.

Before this ruling, 20-year-old employees in these industries were paid 90 per cent of the award rate, 19-year-olds 80 per cent, and 18-year-olds 70 per cent.

SDA national secretary Gerard Dwyer said: “This is a landmark decision, up there with the introduction of equal pay for women in the 1970s.”

“They struggle with the same cost-of-living pressures as every other adult. They do not receive a discount on their rent or the petrol they buy to get to work just because they happen to be 18. Now they will be paid the same as other adults.”

The Greens supported the decision, calling it a big win for young workers.

Greens Senator Barbara Pocock said: “Rising inflation is eroding real wages, pushing young workers further behind in the cost-of-living squeeze. Low-paid workers are already facing an uphill battle as wages have failed to keep up with inflation.”

Despite their support for this decision, the Greens expressed disappointment regarding its exclusion of 16- to 17-year-old workers.

“It’s not fair that a 16-year-old fast-food worker earns $16.60 per hour less than their 21-year-old colleague doing the same job,” Pocock said.

“Junior pay rates guarantee an endless supply of cheap labour for employers willing to exploit the skills and talents of young people newly entering the workforce.”

In the face of this opposition, Australian Retail Council (ARC) CEO Chris Rodwell said that retaining junior rates for 16- to 17-year-olds is important for protecting employment opportunities for young people entering the workforce.

“Early work experience is critical, and we cannot afford to make it harder for young Australians to get their first job,” Rodwell said.

“Junior rates have served Australia well for generations. They recognise that younger workers often have little or no workplace experience and help employers, particularly small businesses, give young people their first opportunity.”

He called retail the training ground for Australia’s future workforce. “Small retailers told us clearly that junior rates help them take a chance on young people who may not yet have experience,” he said.

“Junior pay structures have long provided a balanced pathway that supports both youth employment and business viability.”

The case citation: [2026] FWCFB 75 – AM2024/24 – Application by the Shop, Distributive and Allied Employees Association