FWC Decision Reshapes Junior Pay Rates Across Retail, Fast Food and Pharmacy

The Fair Work Commission’s decision in Application by the Shop, Distributive and Allied Employees Association [2026] FWCFB 75 held that junior rates will be phased out for employees aged 18 years and over who work for the same employer for more than 6 months. Junior rates will, however, continue to apply to employees under 18.

Facts

1. On 6 June 2024, the SDA made an application pursuant to s 157 of the Fair Work Act 2009 (Cth) to increase minimum wages for “junior employees” (a national system employee who is under 21 years) in three modern awards: the General Retail Industry Award 2020, the Fast Food Industry Award 2020, and the Pharmacy Industry Award 2020.

2. The awards cover employers and certain employees in the general retail industry, the fast food industry, and the community pharmacy industry.

3. The SDA sought to vary the junior pay rates under these awards so that any employee aged 18 years or older is paid at adult rates. They also sought to increase minimum wages for employees under 18 as follows:

• Employees aged 16 years or younger are paid at 50% of the adult rate[1]; and
• Employees aged 17 years are paid at 75% of the adult rate.[2]

The Commission’s decision

On 31 March 2026, the Full Bench (Deputy President Butler, Commissioner Lee and Commissioner Harper‑Greenwell) handed down its decision.

The Commission determined that:

• In favour of SDA’s application, the three modern awards involved in the proceedings will be varied to gradually remove junior rates for adult junior employees (aged 18 and over).[3]
• The adult rate will apply only to adult junior workers after six months’ service with the same employer. Employees aged 18–20 with less than six months’ experience will continue to be paid junior rates until that threshold is met.[4]
• Implementation of the new rate will occur through a phased transitional arrangement, which the Commission has provisionally indicated may extend for up to four years. Interested parties will be given a further opportunity to be heard on the final phasing arrangements.[5]
• The Commission rejected the SDA’s proposal to alter junior rates for employees under 18 years old, finding it was not satisfied that such changes were necessary to meet the Fair Work Act’s modern awards or minimum wages objectives. The Commission considered that junior rates can benefit minors by supporting access to employment and facilitating early workforce participation.

Key takeaways

• Employees aged 18 to 21 in the retail, fast food and pharmacy sectors can expect higher minimum wage rates once they have worked for six months with the same employer.
• Employers should begin preparing for the phased increase in labour costs associated with experienced employees in this age group.
• The decision draws a clear distinction between “minors” (under 18) and “young adults” (18–20), a distinction likely to influence future wage‑setting and award‑variation decisions.

[1] [2026] FWCFB 75 at [2]

[2] [2026] FWCFB 75 at [2]

[3] [2026] FWCFB 75 at [23]

[4] [2026] FWCFB 75 at [1083]

[5] [2026] FWCFB 75 at [1082] – [1084]

Please contact Principal Tim McDonald if you need assistance dealing with any matter relating to the above.

Contributors

• Pippa Day, Law Graduate