The Fair Work Commission (FWC) is considering a significant proposal that could reshape junior pay entitlements across key industries. If approved, the changes would remove reduced “junior” rates for workers aged 18 and over under several Modern Awards.
Which Awards Are Affected?
The proposal, lodged by the Shop, Distributive and Allied Employees’ Association (SDA) with support from the ACTU, targets three major Modern Awards:
-
General Retail Industry Award 2020
-
Fast Food Industry Award 2020
-
Pharmacy Industry Award 2020
What Are the Proposed Changes?
Currently, employees under 21 can be paid a reduced percentage of the adult rate. The SDA’s application seeks to:
-
Remove junior rates for employees aged 18 and over, making them eligible for the full adult rate.
-
Increase junior rates for younger employees:
-
16 years and under: 50% of the adult rate (currently 40–50%)
-
17 years: 75% of the adult rate (currently 60%)
-
18 years and over: 100% of the adult rate
-
For example, an 18-year-old fast food worker currently earning $19.02 per hour would see their pay rise to $27.17 — matching the adult wage for that classification.
Why This Matters for Employers
These changes would significantly increase labour costs, particularly for businesses that rely on younger workers. The proposal could have wide-reaching implications for staffing models, budget planning, and payroll systems.
This proposal, if approved, may force a rethink of how businesses structure rosters, manage progression, and attract younger workers. It’s also a reminder that compliance isn’t just about ticking boxes — it’s about staying ahead of changes before they hit the payroll.
Could This Set a Precedent?
While the application currently applies only to three awards, if approved, it may create a precedent that encourages similar changes across other Modern Awards in future cases.
What Happens Next?
This matter is set down for hearings in October and November 2025. If the Fair Work Commission approves the changes, implementation may follow soon after.
Need Help Preparing?
If you employ junior staff, now is the time to review your wage structures and assess the potential impact. Our team can help you model cost scenarios and ensure you remain compliant with evolving workplace laws.
📩 Contact Effective Workplace Solutions for tailored HR and compliance advice.
Disclaimer: This article provides a summary only of the subject matter without the assumption of a duty of care by Effective Workplace Solutions. No person should rely on the contents as a substitute for legal of other professional advice.