Big Changes to Junior Pay Rates: What It Means for You
This week the Australian Fair Work Commission has handed down a landmark decision that will directly impact hundreds of thousands of young workers across retail, fast food and pharmacy.
So, what’s actually changing?
If you’re aged between 18 and 20, this decision is a big deal.
Until now, many young employees have been paid “junior rates”, typically:
18-year-olds: around 70% of the adult wage
19-year-olds: around 80%
20-year-olds: around 90%
The Commission has ruled that these discounted rates should be phased out. Over the next four years (starting from December), wages for 18–20 year olds will gradually increase until they match full adult pay.
Under the phasing-in period, 18-year-olds will have to wait four years for the full adult rate; 19-year-olds will get 100 per cent by July 2028; and 20-year-olds will receive their full increase by July 2027.
Why this matters
The decision is based on a simple principle: If you’re doing the same job, you should be paid fairly—regardless of age. Supporters have even compared this to major workplace milestones like equal pay reforms.
But here’s the catch…
These changes won’t happen overnight, and not every employer will automatically get it right. With phased increases, award conditions, and contract terms all in play, it can quickly get confusing:
Are you being paid the correct rate for your age?
Does your contract reflect the upcoming changes?
Are you classified correctly under your award?
This is where we come in - We’re HR Review — your dedicated, confidential and unbiased HR partner
We simplify the complex jargon in your employment contract so you can make well-informed decisions about your future.
Whether you’re starting a new role or already working, we’ll help you:
Understand your pay and entitlements
Check if your contract is compliant
Make sure you’re being paid correctly
Know your worth. Know your rights. Don’t just assume everything is correct—especially with major changes like this.
