By Francisco Silva -
In a ground-breaking decision, the Fair Work Commission has abolished junior pay rates for young adults aged 18 to 20, giving a pay rise to about half million workers over the next four years.
Young Australians are in line to receive a pay rise, when junior pay rates start to be phased out from 1 December 2026.
The decision of the Fair Work Commission followed the testimony of 87 witnesses. 82 of them gave first hand evidence of working in retail, fast food and pharmacy, while experts weighed in on the impact the decision will have on the businesses.
Deputy President of the Fair Work Commission, Terri Butler, said “we have been particularly interested in the extent to which junior rates serve or do not serve the interests of children and young people”.
“Young teenagers who are trying to get their first job usually wanting to balance work with secondary education, can benefit from being able to accept discount rates compared with older people doing the same job.”
In 2024, The Shop, Distributive and Allied Employees’ Association (SDA) had lodged an application with the Fair Work Commission to abolish junior pay rates and address the pay disparity between young and older employees. In the final decision, the Fair Work Commission ruled the rates would be phased out in the next four years, starting in December 2026.
No changes will be made to the rates of workers younger than 18.
On social media, the National President of the National Union of Students, Felix Hughes celebrated the decision. “[Y]oung workers and students have been underpaid for too long. If you’re doing the same job, you should be paid the same, and this decision finally recognises that.
“Junior pay rates have made it significantly harder for young people to make ends meet. When you’re already dealing with rising rent and living costs, being paid less simply because of your age leaves young workers worse off.”
