More than 500,000 young retail and hospitality workers could see significant pay rises if the Fair Work Commission agrees to scrap junior rates for those 18 and over. Deputy’s Emma Seymour weighs in.
What’s happening: The Shop, Distributive and Allied Employees’ Association has applied to the Fair Work Commission to remove junior pay rates for employees aged 18 and over across the General Retail Industry Award, Fast Food Industry Award and Pharmacy Industry Award. A full bench began hearing evidence on 27 October 2025, with proceedings scheduled until 7 November 2025.
Why this matters: The case challenges Australia’s long-standing practice of paying workers under 21 years of age a percentage of adult wages, with current rates generally seeing 18-year-olds earn between 70 and 80 per cent of the full wage.
Young workers across retail, fast food and pharmacy sectors could soon receive full adult wages as the Fair Work Commission considers abolishing junior pay rates for employees aged 18 and over.
The Shop, Distributive and Allied Employees’ Association lodged the claim in June 2024, seeking to vary three modern awards that currently allow employers to pay workers under 21 years of age (typically aged 16 to 20) a percentage of adult wages. A full bench of the Fair Work Commission began hearing evidence on Monday, 27 October 2025, with proceedings continuing until Friday, 7 November 2025.
Emma Seymour, Chief Financial Officer at workforce management platform Deputy, said the debate extends beyond simple wage calculations.
“The debate around junior pay rates goes beyond wages. It’s a multifaceted conversation about how much we value early career workers and how to build workforces that are sustainable and fair,” Seymour said. “Fair compensation is essential, but the impacts of wage parity are felt differently: young employees gain security, while employers face higher costs and operational challenges.”
Current wage structure
Under the General Retail Industry Award 2020, Fast Food Industry Award 2020 and Pharmacy Industry Award 2020, employees under 21 years of age are classified as junior employees. Junior pay operates as a percentage of the adult wage, increasing with each birthday.
Current approximate rates vary by award and employment type, but typically follow this structure: workers aged 16 or under receive around 45 to 50 per cent of the adult rate, 17-year-olds earn 60 to 75 per cent, 18-year-olds generally receive 70 to 80 per cent, 19-year-olds earn 80 to 90 per cent, and 20-year-olds receive 90 to 100 per cent of adult wages.
The SDA’s proposed changes would see workers 18 years and older receive the full adult wage, whilst workers 16 or under would receive 50 per cent and 17-year-olds would receive 75 per cent of adult rates.
Employer concerns emerge
Employer groups including the Australian Retailers Association and the Franchise Council of Australia have submitted concerns to the Fair Work Commission, arguing that junior employees often perform different roles and require more training than senior colleagues.
The submissions suggest that removing junior rates could increase wage costs and affect employment decisions, with particular concern about regional employment opportunities for young workers.
Seymour acknowledged the operational challenges businesses face when wage structures change rapidly.
“Junior roles in small businesses and franchises are often an entry point into the workforce for young people. Sudden pay increases can force employers to make tough trade-offs that compromise operational efficiency, such as reducing shifts or cutting training programs,” she said. “If these costs rise overnight, workers risk losing these opportunities altogether, a scenario no one wants in a labour market already grappling with skill shortages and retention challenges.”
Trust and retention
However, Seymour emphasised that young workers increasingly evaluate employers based on fairness and transparency, making wage parity a strategic consideration beyond immediate costs.
“On the other hand, young workers are more discerning than ever and expect transparency, purpose, and recognition. When employees perform at the same level but are not rewarded accordingly, trust in the system erodes, which can undermine engagement and loyalty,” she said. “Businesses that invest in fair pay and development are better positioned to retain their talent and build a workforce ready for the future.”
Workforce observers note that workers aged 18 and over increasingly question why they should receive discounted wages when performing identical roles to older colleagues, particularly in sectors where standardised training and procedures mean experience differentials may be minimal.
Balancing fairness
Seymour argued the Fair Work Commission review presents an opportunity to modernise pay structures whilst maintaining employment pathways for young workers entering the workforce.
“The Fair Work Commission review is an opportunity to modernise pay structures in a way that balances fairness with practicality. We need solutions that support and reward young workers while maintaining pathways allowing businesses to train and grow their teams,” she said.
The estimated figure of 500,000 potentially affected workers, cited in union commentary, represents a significant estimated portion of Australia’s retail, fast food and pharmacy workforce. The three awards cover employees in supermarkets, department stores, specialty retail outlets, quick-service restaurants, cafes and community pharmacies.
A formal decision will follow after the hearings conclude on 7 November 2025, with any changes expected to be phased in over time rather than implemented immediately.
“The best approach is to be cognisant of the needs of all parties: ensuring fairer pay while growing a skilful, confident workforce. The answer is not choosing one over the other, but finding a model that allows both to thrive,” Seymour said.
The case has attracted attention from business groups and worker advocacy organisations as it could establish precedent for how Australia structures entry-level wages across other industries where junior rates remain common practice.
Information sourced from Fair Work Commission case filings and statement from Deputy Chief Financial Officer Emma Seymour
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