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ARTICLE · 14 APRIL 2026

Junior Rates Of Pay Set For Major Change

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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In what is already being described as a landmark decision, a Full Bench of the Fair Work Commission has issued a provisional view that junior rates of pay should be phased out for employees aged 18 years and over.

AustraliaEmployment and HR
Jordan Hardinge
Jordan Hardinge
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In what is already being described as a landmark decision, a Full Bench of the Fair Work Commission has issued a provisional view that junior rates of pay should be phased out for employees aged 18 years and over.

While the provisional decision is currently limited to employees covered by the General Retail Industry Award, Fast Food Industry Award, and Pharmacy Industry Award, it is expected that the approach will ultimately be extended across other industries. 

The Full Bench’s decision is expected to deliver pay rises to around 500,000 award-covered young Australians. While the decision is being widely celebrated by union bodies who have long been advocating for this reform, the proposal will undoubtedly increase the labour costs for employers of hiring junior employees – some of whom may be trying to gain work experience in their first role out of school. This may ultimately make it harder for junior employees to secure employment. 

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