Junior Rates No More? FWC Considers Removing Age-Based Pay for Workers Over 18

| March 12, 2026

The Shop, Distributive and Allied Employees’ Association (SDA) has made an application to the Fair Work Commission (FWC) to remove junior rates for employees who are 18 years or older from the following awards:  

• General Retail Industry Award 2020 

• Fast Food Industry Award 2020 

• Pharmacy Industry Award 2020.  

(collectively, the Awards)  

The variations sought would, if granted, mean: 

1. Adult rates will apply to employees as soon as they turn 18 years of age (which is 21 years in most other awards); and 

2. The percentage of the adult rate payable to employees under 18 years of age, would increase. An example of this is the rate of employees under 16 years increasing from 40% of the adult rate to 50% of the adult rate in the General Retail Industry Award 2020).  

Interested parties were invited to make submissions in response to the application.  In response, the FWC received 11 submission and over 84 witness statements, expert reports and other evidence. A summary of the submissions can be found here.  

A Full Bench of the FWC consisting of Deputy President Butler and Commissioners Lee and Harper-Greenwell, heard evidence on the SDA’s application from 27 October 2025 to 7 November 2025, and again over 25 and 26 November 2025.  

Support for the Application 

Proponents of the proposed changes, such as the Retail and Fast Food Workers Union, argued that age-based wages are discriminatory and should be abolished. Further, it was submitted that junior rates undermine living standards and the needs of low paid employees. 

The SDA has outlined that junior rates stem from ‘prejudicial assumptions’ similar to those used for gender-based discrimination.  

A Need for Caution 

By and large the Employer associations opposed the application, with the majority opposing the sought variations to all 3 Awards. Citing ‘significant’ economic and employment impacts, especially in relation to small and/or regional businesses, Australian Business Industrial and Business NSW has urged the Commission to reject the application. It was further submitted that junior rates have historically been accepted and justified by industrial tribunals on work value grounds.  

The Australian Chamber of Commerce and Industry opposed the application on the grounds that Australia has one of the highest minimum wages in the world, with junior employees being paid a proportion of these wages. Further, increasing junior wages would affect employment opportunities for young people.  

In Australian industrial relations, the only certainty is change. We anticipate a decision will be made in the next few months.  

Stay tuned for the latest.  

What’s Next? 

Changes to junior pay rates could have significant implications for employers operating in retail, fast food, and pharmacy sectors. If the proposed variations are approved, businesses may need to review wage structures, employment contracts, and workforce planning to ensure compliance.

IRiQ Law can assist employers in understanding award obligations and preparing for potential changes to wage structures. If you would like advice on how these developments may affect your business, contact our team today for tailored workplace relations guidance.