Workers need over six months’ service with their employer; adult rates apply from July 2029
Employers in retail, fast food and community pharmacy must start lifting pay for workers aged 18 to 20 next month, as junior rates under three modern awards are phased out by 2029.
The Fair Work Ombudsman (FWO) has published the transition schedule following the Fair Work Commission's decision in the junior rates case (AM2024/24).
"The first pay rate increase applies from the first full pay period starting on or after 1 December 2026," the FWO said in guidance updated on 2 November.
Who is affected
The changes apply to retail employees at levels 1 to 3, all fast food employees, and pharmacy assistants at levels 1 and 2. Employees under 21 covered by these awards are currently paid a percentage of the adult rate for their classification.
Under the new arrangements, workers aged 18 to 20 will gradually move to the adult rate once they have more than six months' service with their employer.
"From 1 July 2029, employees over 18 are entitled to full adult rates for their classification if they have more than 6 months service with their employer," the FWO said.
Phased increases
Under the Fast Food and Retail Awards, an 18-year-old with more than six months' service will receive 75% of the adult rate from 1 December.
The rate rises by five percentage points each 1 July and 1 December, reaching 100% from 1 July 2029. Nineteen-year-olds will reach the adult rate from 1 July 2028.
Fast Food Award
Twenty-year-olds reach the full rate from 1 July 2027 under the Fast Food Award. Those under the Retail Award move to 100% from 1 December.
Retail Award
The Pharmacy Award follows an annual schedule. Eighteen-year-olds move from 75% to 85% from 1 July 2027, 95 per cent from 1 July 2028 and the full adult rate from 1 July 2029.
Pharmacy Award
Workers with six months' service or less will stay on 70, 80 and 90% of the adult rate for 18, 19 and 20-year-olds respectively.
"There are no changes to minimum pay rates for employees under the age of 18," the FWO added.
Service rules
The FWO also clarified that the qualifying period is tied to each employer.
"Service with different employers in the same industry does not count towards the increase of junior rates," it said.
In a transfer of business, however, "employment with the old employer counts towards the 6 month qualifying period with the new employer."
The FWO said it has updated its Pay and Conditions Tool and pay guides for all three awards, and will update its resources ahead of each increase.
