Fair Work Commission abolishes junior pay rates for young adult employees



March 31 2026
ABC News

Companies that rely on young staff have been fighting to keep paying 18 to 20-year-olds less money.

Young adults working in retail, fast food and pharmacies are set to receive a pay rise, after a decision by the Fair Work Commission described as "up there with the introduction of equal pay for women in the 1970s".

The commission moved to abolish junior pay rates for young adult employees while maintaining them for minors, but the staged changes won't come into effect until December.

Hearing from more than 80 witnesses across the three industries, it determined that employees aged 18 to 20 should no longer be subject to "discounted" junior rates.   :)

Terri Butler, deputy president of the Fair Work Commission, said in making the decision, it considered whether there was any difference in the value of work performed by junior employees and other employees in the same classifications under the same awards.

"We have been particularly interested in the extent to which junior rates serve or do not serve the interests of children and young people," she said.

"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."

A woman in a black suit.
Terri Butler is the deputy president of the Fair Work Commission.

It decided not to vary the rates for employees who are still minors under 16.

"They are in a position of particular vulnerability and greater labour market disadvantage," Ms Butler said.

"We consider that, among the other matters we've taken into account, there are strong fairness reasons for allowing them to continue to accept discount rates, to get their start in the workplace, gaining valuable experience."

Under the changes, it is estimated around half a million workers will be eligible for the pay rise, according to ABS data.

The ruling addresses an application to vary junior rates under the General Retail Industry Award, the Fast Food Industry Award, and the Pharmacy Industry Award.

There will be a phase-in period of up to four years and the first wage adjustments are scheduled to begin in December.

'Landmark decision'
"Junior pay rates" applied to people below the age of 21, meaning 18-year-olds were paid 70 per cent of the award rate, 80 per cent for 19-year-olds and 90 per cent for 20-year-olds.

Under the commission's ruling, the rate for 18-year-olds will increase by 5 per cent each year until 2029, bringing it in line with an adult wage.

Larger businesses previously claimed the case would have a "totemic" impact to the structure of employment.

Big employers like McDonald's and Coles are often stepping stones to full-time employment, with Woolworths alone providing about one in eight Australians with their first job.

The back of a young man's head, as he stands in a Woolworths supermarket carpark.
Woolworths alone provides about one in eight Australians with their first job.

Advocates have argued youth should be paid adult ages because you can enlist in armed forces at 17, and can vote, drive, drink alcohol and smoke from 18.

National Secretary for the Shop, Distributive and Allied Employees Association (SDA) Gerard Dwyer said it was a "landmark decision, up there with the introduction of equal pay for women in the 1970s".

"It may take longer than we would have liked, but the principle has been established that no longer will 18-year-olds be treated as second class citizens," he said.   :)

"Their work is as valuable as anyone else's and before too long they will be paid accordingly."
The National Union of Students said when students were underpaid it directly impacted their ability to succeed at university.

"This is a real win for young people. Ending junior rates means fairer pay for the work they're already doing and takes some pressure off students balancing work and study," National president Felix Hughes said.

FWC scraps junior rates for 18-20 year olds   :)
2026-03-31
greens.org.au
The Fair Work Commission’s decision today to scrap unfair junior rates for young adults aged 18-20 is a big win for our workers.

The Greens have long campaigned for removing the discriminatory practice of imposing junior rates on Australia’s young workforce.

The real wages of workers have gone backwards as inflation has soared, leaving our young workers behind in a cost-of-living crisis.

The Greens welcome the FWC’s decision for young adults. However, its exclusion of 16-17 year olds is disappointing.

Lines attributable to Greens spokesperson for finance, employment and workplace relations Senator Barbara Pocock:

“Scrapping unfair junior rates is a big win for young workers. For too long 18-20 year olds have been doing the same work as their 21 year old colleagues but for less pay.

“Rising inflation is eroding real wages, pushing young workers further behind in the cost-of-living squeeze.

“Low-paid workers are already facing an uphill battle as wages have failed to keep up with the inflation.

“The Greens believe workers’ pay should reflect their skills, not their age. We need to continue to raise the wages of under-18s who do the same work for less pay.

“It’s not fair that a 16 year old fast food worker earns $16.60 per hour less than their 21 year old colleague doing the same job.

“Junior pay rates guarantee an endless supply of cheap labour for employers willing to exploit the skills and talents of young people newly entering the workforce.”

About time!

I know the good people at SDA have been fighting for this for years.

So when did they stop being Teenagers and become part of the Book industry marketing of Young Adult FICTION?

And how can you guarantee Teenagers on Adult wages will provide adult service and performance?

Will they be trialed as Adults on Adult wages if the are caught stealing from the till? Will they cry victimhood to their Mummies? :'(

Will they now dismiss laws against older female teachers from having sex with 18 & 19 year old 'adults'?

Looks more like an abuse of teenagers who have been 'bought' to suffer the expectations that come with being an adult.

I've never hit or physically handled an abusive 'teenager', despite their excuse of using emotional blackmail. I have though, orchestrated women on my behalf to give them a good whipping.
But now apparently I can smack out a smart arse, even if they are 'KIDS' ::)


This is a very stupid and greedy turn of events.

Jasin wrote on Mar 31^st, 2026 at 6:00pm:

... how can you guarantee Teenagers on Adult wages will provide adult service and performance?

They've been doing it for decades.

greggerypeccary wrote on Mar 31^st, 2026 at 8:10pm:

Jasin wrote on Mar 31st, 2026 at 6:00pm: ... how can you guarantee Teenagers on Adult wages will provide adult service and performance? They've been doing it for decades.

Doing what Mr morality fraud?
Every 'teenager' I've seen work with adults has always been treated as a teenager and given concession for their obvious failure to work 'exactly' as an adult should. That includes personality, ability, reliability and all the rest.Thats why they were given JUNIOR rates in the first place idiot.

What price did you put on a JUNIOR worker, whose youthful ways was cut short for your belief that they should work those two extra years that you stole from them?

Quote:

"They are in a position of particular vulnerability and greater labour market disadvantage," Ms Butler said.

And this is a good reason to further disadvantage them with lower pay rates ?

Is this the worst argument you ever heard ?

18 to 20 year olds are legaly adults. They can serve the country and die but at a discounted pay rate ?

I don't see how they could have ever gotten away with this outragious treatment.

Jasin wrote on Mar 31^st, 2026 at 6:00pm:

... how can you guarantee Teenagers on Adult wages will provide adult service and performance?

How can you gaurantee that 30 year olds on adult wages will provide adult service and performance?

18 year olds don't get a discount on rent or food prices ?

Dnarever wrote on Mar 31^st, 2026 at 11:06pm:

18 to 20 year olds are legaly adults. They can serve the country and die but at a discounted pay rate ? I don't see how they could have ever gotten away with this outragious treatment.

Where did I say 20 year Olds? 20 year Olds ARE adults as they are not teenagers.

Dnarever wrote on Mar 31^st, 2026 at 11:08pm:

Jasin wrote on Mar 31st, 2026 at 6:00pm: ... how can you guarantee Teenagers on Adult wages will provide adult service and performance? How can you gaurantee that 30 year olds on adult wages will provide adult service and performance?

If they don't. They get sacked. Simple.

Dnarever wrote on Mar 31^st, 2026 at 11:10pm:

18 year olds don't get a discount on rent or food prices ?

Should they? As 'kids' aka Teenagers. They are probably still at oldies home and shouldn't be paying to provide for a family at that age.

Dnarever wrote on Mar 31^st, 2026 at 11:03pm:

Quote: "They are in a position of particular vulnerability and greater labour market disadvantage," Ms Butler said. And this is a good reason to further disadvantage them with lower pay rates ? Is this the worst argument you ever heard ?

You don't have an argument. So keep shutting up moron. ::)

Dnarever wrote on Mar 31^st, 2026 at 11:06pm:

18 to 20 year olds are legaly adults. They can serve the country and die but at a discounted pay rate ? I don't see how they could have ever gotten away with this outragious treatment.

There are fast food outlets all over the country with managers who are aged 18, 19, or 20.

They're expected to manage a store (like an adult), yet they're not paid adult rates.

Ridiculous.

This move is well overdue.

Well done FWC.

Jasin wrote on Mar 31^st, 2026 at 11:35pm:

Dnarever wrote on Mar 31st, 2026 at 11:03pm: Quote: "They are in a position of particular vulnerability and greater labour market disadvantage," Ms Butler said. And this is a good reason to further disadvantage them with lower pay rates ? Is this the worst argument you ever heard ? You don't have an argument. So keep shutting up moron. ::)

like when did you ever have an argument on any topic ? Your sweet spot is a never ending stream of senseless dribble.

Jasin wrote on Mar 31^st, 2026 at 11:34pm:

Dnarever wrote on Mar 31st, 2026 at 11:10pm: 18 year olds don't get a discount on rent or food prices ? Should they? As 'kids' aka Teenagers. They are probably still at oldies home and shouldn't be paying to provide for a family at that age.

Many 18 year old adults move out of home or are forced out of home and have to pay full rent and food prices while having their income limited. Students have to leave home to attend Uni or other education facilities etc.

Jasin wrote on Mar 31^st, 2026 at 11:33pm:

Dnarever wrote on Mar 31st, 2026 at 11:08pm: Jasin wrote on Mar 31st, 2026 at 6:00pm: ... how can you guarantee Teenagers on Adult wages will provide adult service and performance? How can you gaurantee that 30 year olds on adult wages will provide adult service and performance? If they don't. They get sacked. Simple.

Why do you believe that the same standard doesn't apply to teenagers?

Jasin wrote on Mar 31^st, 2026 at 11:32pm:

Dnarever wrote on Mar 31st, 2026 at 11:06pm: 18 to 20 year olds are legaly adults. They can serve the country and die but at a discounted pay rate ? I don't see how they could have ever gotten away with this outragious treatment. Where did I say 20 year Olds? 20 year Olds ARE adults as they are not teenagers.

Quote:

FWC scraps junior rates for 18-20 year olds   Smiley 2026-03-31

20 Year olds are paid at junior rates is the reason, 18 year olds are legally adults in Australia.

18 year olds can go to war, drink alcohol, marry, reproduce, vote, gamble, sign contracts and anything else except get paid properly for their labour.

It would have been better to tier wages according to experience in a job rather than age. If you are 20 and have been in the job for 3 years you are more experienced than a 30 year old just stating in the role.

Depending on the job, of course. Some roles require maturity, not necessarily experience. Not the same thing.

As noted above, 18 year olds are legally adults and should receive adult wages. Experience is what should determine wages rather than age, with a training wage for the first month or so until a person becomes proficient enough for a full wage, regardless of age.

Well that's where it all breaks down isn't it.
An 18-19 year old is still a 'teenager' like they were when they were 14.
Yet the law says they're Adult.
Yet the law says a 20 year old 'adult', who is no longer a teenager, gets paid JNR rates.

I mean, what a cockwobble mess! ::)
F#ckin draw the line!

So when you hear songs like "I was only 19!" by Redgum to lay on the emotional guit of sending KIDS to war...

C'mon fellas.Whats it gonna be?

Having worked in Psyche and researched into humanities, mythologies (like rituals of coming of age, etc).

I believe from what I've also seen. Both Boys and Girls, especially when we are living longer, maturing slower - are children from 0-19, with 20 being the first year of Adulthood. You could also balance this with the last 20 years being Old Age or Elderhood.

We have to set this in stone across the board and stop the confusion and cockwobbling 'its ok here, but not there' blurred lines.
Maybe 100 years from now, we live to 150. Then of course we change the one and only line.

"The thoughts of youth are long, long thoughts" - Longfellow. And so they should be. Of all the species on the planet, us Sapiens have the longest 'youthful' period and it has been to our advantage.
Cruel has the world been that forces children to grow up fast, like 12 year old brides and concubines.

I say. We should allow our youth to be young for as long as we can for a society that can't carry that burden as Adults, is a weak society indeed.

By having 'blurred lines', we leave the window open for kids to be kicked out of home to go earn their own way, etc.

You know our laws are wrong. You know the stress of kids 'trying' to act like adults with rituals of alcohol & drugs. Of being the highest bracket of accidents once off their L's, etc.

This payrise is exploitation and mentally wrong.

I can tell you. In Construction, the Adult guys who act, work and behave like 'kids' - get the friggin lights punched out.
...so do you really wanna see 18-19 year Olds, who do such as kids, get whacked because they get paid the rate that justifies that?

A few times, I've roused on guys for coming down too hard on 18-19 year Olds.
It's not our place as men. It's more effective and constructive when female staff kick em up the bum instead.

Man. I know if we were all in prison. I would have to protect such kids from your exploitations of 'prison law'.

...think about it. Think real hard.