18+ junior workers to get adult award rates in fast food and retail

Currently, employees aged 18, 19 or 20 who work in the retail and fast-food industries can be paid a minimum award rate that is 70%, 80% or 90% of the applicable minimum adult award rate of pay.

On 31 March 2026, the Fair Work Commission (FWC) decided that modern awards covering retail and fast-food industries should phase out these junior rates for adult employees.

After 6 months’ experience, the rates payable to adult junior employees will be set at a rate of 100% of the full adult rate of pay. The current percentage rates for adult junior employees with less than 6 months’ experience with their current employer will stay the same.

Junior rates for persons aged under 18 will remain the same.

The changes will be phased in over time starting from 1 December 2026, with the final changes to happen from 1 July 2029.

The FWC observed that the justification for junior rates – to assist young people to gain employment in the face of the factors that made them less employable, e.g. restrictions on child employment, less available, can’t get a driver’s licence, less maturity, life and work experience – wasn’t applicable for junior employees who are aged 18 and over.

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