Changes to junior pay rates in the Retail, Fast Food and Pharmacy Awards

The Fair Work Commission (FWC) has decided that from 1 December 2026, junior rates for most employees aged 18 to 20 covered by the following awards will be progressively phased out:

• General Retail Industry Award 2020 (Retail Award),
• Fast Food Industry Award 2020 (Fast Food Award), and
• Pharmacy Industry Award 2020 (Pharmacy Award).

Adult rates will apply to these employees by 1 July 2029.

There is an exception for employees aged 18 to 20 with less than six months’ employment with their current employer – see below for further information.

The FWC decided that these changes were appropriate because employees aged 18 and over are legally adults and generally perform work of the same value as employees aged 21 and over.

How do junior rates currently work?

The Retail, Fast Food and Pharmacy Awards define junior employees as employees aged under 21 years.

These awards currently include rates of pay for junior employees that are lower than the rates for adult employees in the same classifications.

Junior rates apply in the following award classifications:

• Retail Award – Retail Employee Levels 1, 2 and 3 only.
• Fast Food Award – all classification levels.
• Pharmacy Award – Pharmacy Assistant Levels 1 and 2 only.

Employees classified in levels other than those specified above are entitled to the adult rate of pay regardless of their age.

Junior rates are calculated as a percentage of the adult rate for the relevant classification. For example:

• A 17-year-old employee classified at Level 1 under the Retail Award is entitled to 60% of the adult Level 1 rate.
• A 19-year-old employee classified at Level 2 under the Fast Food Award is currently entitled to 80% of the adult Level 2 rate.

Which junior rates will be affected by the changes?

From 1 December 2026, junior rates will begin to increase for employees who:

• are covered by one of the three awards listed above,
• are employed in an award classification to which junior rates apply,
• are aged 18 to 20, and
• have been employed by their current employer for at least six months.

Which junior rates will not be affected by the changes?

There will be no change to junior rates for employees who are:

• aged under 18, or
• aged 18 to 20 and who have worked for their current employer for less than six months.

These employees will continue to be entitled to a specified percentage of the adult rate for their classification.

The adult rate will apply once an employee reaches 18 years of age or six months’ employment with their current employer, whichever happens later.

How will the increases be phased in?

The increases to junior rates will be phased in over a maximum of five years starting from 1 December 2026.

The increases will be made in 5% increments between 1 December 2026 and 1 July 2029 until the rate reaches 100% of the adult rate for the applicable classification.

For example:

• Under the Fast Food Award, the rate for an 18-year-old employed for at least six months will increase by 5% each 1 December and 1 July from the current rate of 70% of the adult rate until the rate reaches 100% on 1 July 2029.
• Under the Retail Award, the rate for a 19-year-old employed for at least six months will increase by 5% each 1 December and 1 July from the current rate of 80% of the adult rate until the rate reaches 100% on 1 July 2028.

The time taken for a particular junior rate to increase to the adult rate will vary depending on the employee's age and the current junior percentage under the applicable award.

For each increase, the new rate takes effect from the first full pay period starting on or after the relevant date (i.e. 1 December or 1 July).

Practical impacts and next steps

The decision changes junior rates under the Retail, Fast Food and Pharmacy Awards only. This means that:

• junior rates under other awards are not affected, and
• employers in the retail, fast food or pharmacy industries that operate under an enterprise agreement should obtain advice about whether and how the changes affect their employees.

Employers covered by the Retail, Fast Food and Pharmacy Awards should review their payroll systems and workforce budgets ahead of the first increase on 1 December 2026 to ensure affected employees receive the correct rates.

Key takeaways

• From 1 December 2026, junior pay rates for many employees aged 18 to 20 in the retail, fast food and pharmacy industries will begin increasing towards adult rates.

• The changes do not affect employees aged under 18, and most employees aged 18 to 20 must complete six months with their employer before becoming eligible for the higher rates.

• Affected employers in the retail, fast food and pharmacy industries should review their workforces and payroll systems to ensure they are ready to implement the first increase on 1 December 2026.

• The Fair Work Ombudsman’s website includes information about junior rates and will publish further details about the increases closer to 1 December 2026.