The Fair Work Commission is gradually phasing out junior pay rates for 18, 19 and 20 year olds in the General Retail Industry Award 2020, the Fast Food Industry Award 2020 and the Pharmacy Industry Award 2020. You can read the Fair Work Commission’s decision here.

The changes will be rolled out in stages, with the first step taking effect on 1 December 2026. Once fully implemented, workers aged 18, 19 and 20 in these industries will be entitled to the same adult pay rates as their older colleagues. 

If you employ junior workers in retail, fast food or pharmacy, here’s everything you need to know.

What’s the long-term plan?

At the moment, employees under the Retail, Fast Food and Pharmacy Awards who are aged 18, 19 or 20 are generally paid a percentage of the adult rate (“junior rates”) based purely on their age.

Under the forthcoming changes, junior rates will be increased for 18, 19 and 20 year olds once they have been employed by their employer for more than six months.

The long-term plan is that such employees will move to the full adult rate after six months employment, but the initial changes are less drastic.

Nothing will change for employees under 18. Their existing junior rates stay the same.

What’s changing on 1 December 2026?

The move to the full adult rate after six months is the end-point of a staged phase-in, but the move to full adult rates will not occur until 2029.

What changes on 1 December 2026 is only the first step-up in the phase-in. 

From that date, young adults who have already been employed by their employer for more than six months move up by five percentage points from their current rate, so:

1. An 18-year-old upon reaching six months’ service goes from 70% to 75% of the adult rate;
2. A 19-year-old upon reaching six months’ service goes from 80% to 85% of the adult rate; and
3. A 20-year-old upon reaching six months’ service goes from 90% to 95% of the adult rate (except under the General Retail Award, where 20-year-olds are already on the full adult rate and so see no change).

How the six-month qualifying period works

The six-month period is measured by reference to employment with the same employer, not experience gained in the industry generally or with previous employers.

One point to note is that if there is a transfer of business (e.g. a business is sold and the employees move across to the new owner), service with the old employer counts towards the six months. So an employee who transfers across will not have to start the six-month clock again.

For the General Retail Industry Award, this is not entirely new. Since 2014, 20-year-old retail employees have already moved to the adult rate after six months with their employer. The change extends that same approach to 18 and 19 year olds, and applies a similar approach across the Fast Food and Pharmacy awards.

Which employees will this affect?

The changes apply to:

1. General Retail Industry Award: retail employee levels 1 to 3;
2. Fast Food Industry Award: all levels; and
3. Pharmacy Industry Award: pharmacy assistants levels 1 and 2.

When do the changes take effect? A look at the phasing schedules

The move to full adult rates is being phased in gradually, in stages, rather than all at once. Each increase takes effect from the start of an employee’s first full pay period commencing on or after the date shown.

The tables below show the junior rate (as a percentage of the adult rate) for young adults who have been employed by their employer for more than six months. Employees with six months or less continue on the current rates (70% / 80% / 90%) throughout.

General Retail and Fast Food Awards

For these two awards, rates rise in five percentage point steps each July and December until they reach the full adult rate.

Important: Under the General Retail Award, 20-year-olds are already paid the full adult rate after six months, so the schedule above affects only the 18 and 19-year-old cohorts in retail. The 20-year-old column applies under the Fast Food Award only.

Pharmacy Award

Under the Pharmacy Award the increases are less frequent (generally yearly, not every six months).

Worked examples

18-year-old, General Retail Award (more than six months’ service)

Sasha is 18 and has worked for the same retailer for eight months. Her current rate is 70% of the adult rate. From the first full pay period on or after 1 December 2026 she moves to 75%. She then steps up over time: 80% from 1 July 2027, 85% from 1 December 2027, 90% from 1 July 2028, 95% from 1 December 2028, and reaches the full adult rate (100%) from 1 July 2029.

18-year-old still within the first six months

If Sasha had instead started only two months ago, nothing changes for her on 1 December 2026. She stays on 70% until she completes six months’ service, and while the phase-in is still running she then moves to whatever transitional rate applies at that date, not straight to 100%.

20-year-old, Fast Food Award (more than six months’ service)

Liam is 20 and has worked for the same fast food outlet for over a year. His current rate is 90%. From 1 December 2026 he moves to 95%, and to the full adult rate (100%) from 1 July 2027.

20-year-old, General Retail Award

A 20-year-old with more than six months’ service is already paid the full adult rate under the General Retail Award, so there is no change for this cohort on 1 December 2026 or at any later date.

What employers should do now

1. Identify which of your young adult employees are approaching, or have passed, six months’ service with you.
2. Update payroll systems to track the six-month qualifying period and apply the correct percentage as each phasing date arrives.
3. Remember that the increases are staged. Build the future dates into your pay planning rather than treating this as a single one-off change.
4. Where a transfer of business applies, make sure prior service is counted towards the six months.

The first increases take effect from the first full pay period on or after 1 December 2026, so it’s worth preparing well ahead of time.

Employment Hero can help you manage changes to Modern Awards

Keeping up with award changes like these is exactly where Employment Hero can help. Our modern award engine applies the correct pay rates based on each employee’s age and length of service, so you don’t have to manually track phasing dates or calculate transitional percentages yourself. And if you have questions about how these changes apply to your specific workforce, our HR advisory team is on hand to help you navigate the details. 

Want to see it in action? Book a demo to see how Employment Hero can make managing the changes easy.

The information in this article is current as at 30 September 2026 and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.