Australia Ends Junior Pay Discounts for 18-20 in Key Sectors

Australia's Fair Work Commission ruled on Tuesday to eliminate discounted junior pay rates for workers aged 18 to 20 in the retail, fast food and pharmacy sectors, ensuring they receive full adult award wages after gaining initial experience. The decision, affecting hundreds of thousands of young employees at major chains like Coles, Woolworths and McDonald's, marks a significant update to the General Retail Industry Award 2020, Fast Food Industry Award 2020 and Pharmacy Industry Award 2020. Changes will phase in over four years, beginning in December 2026, to allow businesses time to adapt.

Under the existing system, 18-year-olds earn 70 percent of the full adult rate, with rates increasing to 80 percent for 19-year-olds and 90 percent for 20-year-olds. The commission determined that these age-based discounts no longer reflect the value of work performed by young adults, who often handle the same tasks as older colleagues. For workers aged 18 to 20 with at least six months of experience at their employer, pay will transition to 100 percent of the adult rate through gradual increments of 5 percent every six months. For instance, 20-year-olds will reach full pay by July 2027,...