Junior Rates No More? An Update on the FWC Decision

| April 1, 2026

Readers will recall our article published on 12 March regarding an application to abolish junior rates. View the post HERE.

We now have an update to share.

On 31 March 2026, a Full Bench of the Fair Work Commission (FWCFB) resolved to abolish junior rates for employees aged 18, 19 and 20 employed under the General Retail Industry Award, the Fast Food Industry Award, and the Pharmacy Industry Award. 

This decision followed an application by the Shop, Distributive and Allied Employees’ Association (SDA) to vary certain minimum wages for junior employees under the above awards.

The proceedings were conducted as a major case, with submissions and evidence received from a number of parties. Two organisations filed submissions in support of the application, namely the Retail and Fast Food Workers Union and Youth Law Australia. A total of seven submissions were received in opposition to the application, including from Business NSW, the Australian Business Council, and the Australian Chamber of Commerce and Industry.

In total, the FWCFB heard from 87 witnesses, five of whom were expert witnesses. These experts provided opinions on issues such as the likely costs to employers if the application were granted, the potential effects on employment, and broader economic impacts.

As the application sought a determination varying minimum wages across the three awards, the FWCFB was required to consider:

1.  whether the variations were justified by work value reasons;  

2. whether they were necessary to achieve the modern awards objective;

3. whether they were necessary to achieve the minimum wages objective; and

4. whether it was necessary to deal with this application and make any consequent determination(s) outside the system of annual wage reviews. 

In regard to junior employees under the age of 18, it was determined that the risks these employees face if they do not participate in employment outweigh the considerations in favour of increasing the rates from 15-18 years of age, and declined to alter the current percentages in order to meet the modern awards and minimum wages objectives. 

Ultimately, for junior employees aged 18 to 20, the FWCFB found that varying minimum wages was justified on work value grounds. The Full Bench had regard to extensive lay evidence concerning the nature of the work, the skills and responsibilities involved, and the conditions under which the work is performed.

The FWCFB also considered it necessary to vary junior rates for these employees to meet the modern awards and minimum wages objectives. In doing so, it took into account the objects of the Fair Work Act 2009 (Cth), including Australia’s international labour obligations.

The Decision and Implementation Timeline

The Full Bench determined that employees aged 18 to 20 will be paid 100% of the applicable adult minimum wage for their classification.

However, the current percentage rates will be retained for employees in this age group who have less than six months’ service with their employer.

The Full Bench is yet to issue a formal Determination on implementation. However, its provisional view is that changes will be introduced on a staged basis, as outlined below:

As we await a final determination on implementation, employers with junior employees under the above awards should begin planning for wage rate changes from December 2026.

Stay tuned for further updates.

Preparing for Changes to Junior Wage Rates

The phased removal of junior rates for employees aged 18 to 20 will have a significant impact on labour costs and workforce planning across the retail, fast food, and pharmacy sectors. Employers should begin reviewing wage structures, classifications, and employment arrangements well ahead of the proposed implementation dates.

IRiQ Law can assist with award interpretation, payroll compliance, and strategic workforce planning to help your business prepare for these changes.

If you would like advice on how these developments may affect your organisation, contact our team today.