28 April 2026

Everything employers need to know about changes to junior award rates

Authored by: Annie Smeaton, William Head
The Fair Work Commission has handed down a decision to phase out junior rates in three modern awards.

After nearly 18 months, the Fair Work Commission has released its decision on junior rates. This decision affects three modern awards:

  • General Retail Industry Award 2020
  • Fast Food Industry Award 2020
  • Pharmacy Industry Award 2020.

As a result, the three Awards will be amended to phase out junior rates for employees aged 18 to 20.

The proceedings in the Fair Work Commission

Currently, the three Awards provide the following junior rates (as a percentage of the adult rate):

  • under 16: 40-45%
  • 16 years old: 50%
  • 17 years old: 60%
  • 18 years old: 70%
  • 19 years old: 80%
  • 20 years old: 90%.

In June 2024, the Shop, Distributive and Allied Employees’ Association (SDA) applied to remove junior rates for all employees aged over 18 and to reduce junior rates for employees under 18 in the three Awards.

The SDA argued that junior rates are no longer justified because the work performed by juniors is substantially the same as work done by employees aged over 21.

Several organisations opposed the SDA’s application, arguing that junior rates have a sound basis and help promote youth participation in the workforce.

The Fair Work Commission’s decision

The Commission considered these submissions and concluded that junior rates for employees aged 18 and over should be phased out over three years.

The Commission accepted that the work value of employees under 18 may be lower due to their maturity and experience. However, it found that employees aged 18 to 20 perform work substantially similar to that of employees over 21, with no productivity difference between the two groups.

The Commission did accept that a reduced rate should apply to employees aged 18 to 20 during the first six months of their role while they are still undergoing training.

On this basis, the Commission decided to phase out junior rates for employees aged 18 to 20 under the three Awards. However, junior rates will remain for employees under 18 and for employees aged 18 to 20 with less than six months’ experience.

The junior rates for employees aged 18 to 20 will be phased out as outlined in the table below:

Employee age 18 19 20
Rate (as a percentage of the adult rate) 70% 80% 90%
1 December 2026 75% 85% 95%
1 July 2027 90% 90% Full adult rate
1 December 2027 85% 95%
1 July 2028 90% Full adult rate
1 December 2028 95%
1 July 2029 Full adult rate

Key takeaways

While these changes will not take effect until 1 December 2026, employers should start planning for the rate increases. This includes updating payroll systems and forecasting labour costs. Employers should also factor these rate changes into enterprise bargaining and future pay negotiations.

Even employers without staff covered by the three Awards should take note, as applications to amend other awards with junior rates may follow.

If you have any questions about this article, please contact a member of our workplace relations and safety team.

 

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This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please let us know.

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