If your business is in retail, fast food, or pharmacy, and you employ younger team members, there’s a recent Fair Work Commission decision you need to be aware of. In simple terms, the Commission on 31st March 2026 determined that under the key Awards that apply to those prescribed industries, 18–20-year-olds will progressively move to the full adult minimum Award wage rate.
It’s not happening immediately, so there’s no need to panic, but it is the kind of change that could potentially catch some busy small business owners off guard, especially if payroll settings are not updated at the right time. It’s also a decision that may have a broader “flow on” effect, with similar arguments likely to be tested in other modern Awards over time.
What’s changing (and which Awards are impacted)
The decision relates to three modern Awards:
- General Retail Industry Award 2020
- Fast Food Industry Award 2020
- Pharmacy Industry Award 2020
Historically, these Awards have included junior wage percentages for employees up to 20 years of age. The Commission has now determined those age-based rates should be phased out for employees aged 18 to 20, such that they will in time be paid in line with adult minimum rates. Junior rates will continue to remain in place for those aged under 18.
Consultation will occur over coming months to finalise transitional arrangements before the change is fully implemented. It appears likely that the first wage adjustments will occur in December of this year, and it may take up to 4 years for the decision to take full effect. It also appears that 18-20-year-old workers will, at least during the transition period, need to have been with an employer for six months to receive the adult rate.
Why ALL small businesses should pay attention
Junior rates have long been part of the way many businesses balance costs, rostering, training, and giving young people their first opportunity. On the other hand, the Commission accepted that 18–20-year-olds face adult living costs, and that age alone isn’t a strong enough reason for lower minimum pay in these industries.
Even if your business is not in retail, fast food, or pharmacy, it’s still worth paying attention. When the Commission makes a significant call on minimum standards in one set of Awards, it often influences:
- future union applications in other industries
- how employer groups respond in wage-setting matters
- the Commission’s thinking about what is “fair and relevant” minimum standards
As a result, it wouldn’t be at all surprising to us to see similar arguments raised in other Award-covered industries that employ younger workers. This is one of those developments that can start in a few Awards and then gradually expand.
A sensible “heads up” checklist
You don’t need to overhaul everything today, but it is perhaps worth doing a quick sense-check so you’re not scrambling later:
- Confirm Award coverage for any roles in which you employ junior staff
- Identify employees currently paid junior percentages (especially 18–20-year-olds, and younger employees who will gradually enter into that age bracket)
- Make sure your payroll system can handle staged rate changes
- Consider the potential budget impact (noting that impacts are likely from December 2026).
Be sure to keep an eye on our newsletters/social media channels to stay up to date with developments.
Need help making sure you’re on track?
Here at HR Success, we help small and medium businesses make Award compliance practical and manageable. If you’d like support confirming Award coverage, checking classifications, or understanding what this change could mean for your business, reach out. It’s a simple way to protect your business and feel confident you’re meeting your responsibilities as an employer.
For those who like to read the source material, the decision is published by the Fair Work Commission (case reference: [2026] FWCFB 75 – AM2024/24).
