If you employ young adults in a shop, takeaway or pharmacy, a pay change is about three weeks away. The Fair Work Commission decided on 31 March 2026 to phase out junior rates for 18 to 20 year olds in the General Retail Industry Award, the Fast Food Industry Award and the Pharmacy Industry Award. The first step starts on 1 December 2026.

What is changing

Today, 18 year olds in these awards are paid 70 per cent of the adult rate, 19 year olds 80 per cent and 20 year olds 90 per cent. Those percentages will now rise in stages until they reach the full adult rate, which is expected by 1 July 2029. The first step is a rise of five percentage points, for example from 70 to 75 per cent for an 18 year old. It applies from the first full pay period starting on or after 1 December 2026.

The six month rule

The step ups only apply to 18 to 20 year olds who have worked for the same employer for more than six months. Newer staff stay on the current junior percentages until they pass that mark. Service with a previous employer does not count, but if you buy a business, service with the old owner does. Rates for employees under 18 are not changing.

Check your award and your schedule

The timetable is not identical across the three awards. Fast food moves roughly every six months, while pharmacy steps are further apart, and the retail award only has junior rates for 18 and 19 year olds at the adult end. Do not rely on a summary: check the percentages for your award and your employee's age on the Fair Work Ombudsman site before you update payroll.

What to do

  • List your 18 to 20 year olds and their start dates, so you know who has passed six months.
  • Set a reminder for each employee's six month date, because their rate rises when they reach it.
  • Update your payroll software so the correct percentage applies from the first pay period on or after 1 December.
  • Plan the future steps through to 2029 in your rosters and pricing, not just the first one.
  • Check any enterprise agreement, as the new award rates may lift the minimum your agreement has to beat.
  • Tell your staff what is changing and when, to avoid confusion on payday.

Underpaying wages is one of the things the Fair Work Ombudsman keeps a close eye on, so getting the system right now is cheaper than back paying later.

This article is general information only and does not take your circumstances into account. Check the Fair Work Ombudsman website or speak to a professional about your situation.