2nd April 2026

The Fair Work Commission this week handed down a landmark decision in the “junior rates” case, confirming that workers aged 18–20 in the General Retail Industry Award (GRIA), Fast Food Award and Pharmacy Award will progressively move to the full adult rate of pay.

The key change is that adult classification rates will apply to these employees after six months’ service with the same employer, replacing the current percentage-based structure (e.g. 70% at age 18, 80% at 19, 90% at 20). The transition will be phased in over four years (commencing late 2026), with the Commission explicitly retaining junior rates for employees under 18 and rejecting proposals to extend increases to that cohort. This outcome broadly confirms what had been signalled through the 2024–25 proceedings—namely that the Commission was likely to find the existing structure “work value” inequitable for adult employees—but the final decision clarifies both the service condition (6 months) and the staged implementation timetable, which were not settled in earlier consultation phases.

For retailers operating under the GRIA, the practical impact is a structural increase in labour cost for a key demographic (18–20-year-olds), particularly in part-time and casual roles where junior rates have historically underpinned roster economics.

Employers will need to model (1) wage progression by tenure, not just age, (2) compression between junior and entry-level adult classifications, and (3) flow-on effects to penalty rates, casual loadings and superannuation, all of which are calculated off the base rate.

The phased approach provides some adjustment time, but the Commission has acknowledged that cost impacts will be material even as it concluded the fairness case outweighed potential employment effects. In the near term, employers should review workforce mix, tenure tracking, and payroll systems to ensure compliance once the new provisions begin to apply, and monitor updated pay guides as they are issued.

For official award and pay rate information, see the Fair Work Ombudsman resources or Australian Retail Council. The AMA member affiliation with the National Retail Association is continuing under the transition to the merged ARC.