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Junior Rates are Changing – The Fair Work Commission has recently made a decision that will affect how junior employees are paid in the retail, fast food and pharmacy industries.
While the changes won’t apply straight away, they are significant and worth understanding now so businesses can plan ahead.
Who Is Affected by the Junior Rates Changes?
This decision applies to businesses covered by the:
- General Retail Industry Award
- Fast Food Industry Award
- Pharmacy Industry Award
If you employ younger workers — particularly 18 to 20 year olds — this decision is likely to affect you over time.
What’s actually changing?
The key change is for junior employees (aged 18–20) who have been with their employer for a period of time.
In simple terms:
- 18–20 year olds with more than 6 months’ service will eventually be paid the full adult rate for their role
- 18–20 year olds with 6 months or less service will stay on the current junior rates
- Employees under 18 are not affected — their junior rates stay the same
The Commission’s view is that once an employee is an adult and has gained experience with their employer, paying a lower rate just because of age is no longer appropriate.
When Will Junior Rate Changes Take Effect?
No — there are no immediate changes.
The Commission has indicated that these changes will be phased in gradually, with:
- changes expected to start from December 2026, and
- full implementation by July 2029
There will be further consultation before anything is finalised, including details about how the phase‑in will work.
Why this matters for employers
Even though this is a future change, it has real, practical implications for businesses:
- Wage costs for adult junior employees are likely to increase over time
- Businesses that rely heavily on younger workers may need to review rostering models
- Budgeting and workforce planning will become more important as the changes are phased in
For some employers, this may also prompt conversations about:
- training and progression pathways
- role design and expectations for younger workers
- balancing experience, cost and productivity
What should businesses do now?
At this stage, the best approach is to be aware and plan ahead:
- Know which employees may be affected in the future
- Factor potential cost increases into long‑term planning
- Avoid making assumptions until the final implementation details are confirmed
We’ll continue to monitor this decision and provide clear, practical updates as the Commission confirms the next steps.
If you’d like help understanding how this may affect your business, or want to talk through workforce planning options, our team is here to help.
Support When You Need It
At People Smartz, we help businesses navigate their obligations with confidence. Whether it’s award interpretation, reviewing entitlements, or drafting compliant employment agreements, we’re here to help.