Junior Rates Scrapped: 18 = Adult Pay

The Fair Work Commission is moving to scrap junior pay rates for workers aged 18 and over. Under the current system, employers can legally pay 18-year-olds just 68.3% of the adult minimum wage ($16.46/hr), 19-year-olds 82.5% ($19.88/hr), and 20-year-olds 97.7% ($23.55/hr).

That's about to end. The Commission has flagged that once you turn 18 — old enough to vote, drink, sign a contract, and be tried as an adult — you should be paid as an adult too. The change means every worker aged 18+ will be entitled to the full adult minimum wage of $25.50/hr (or $31.88/hr casual) from when the new order takes effect.

Junior rates for workers under 18 (16 and 17 year olds) are expected to remain, though they may also be reviewed.

Junior rates were originally justified by the argument that younger workers are less productive and still learning. But that argument has worn thin:

• Cost of living doesn't care about your age. An 18-year-old paying $250/week rent has the same expenses as a 25-year-old paying $250/week rent. Paying them 68% of the adult rate doesn't reflect their costs.
• Productivity data doesn't support it. Multiple studies have shown that in most roles — retail, hospitality, fast food — an experienced 18-year-old is just as productive as a 25-year-old doing the same job.
• It's effectively age discrimination. Australia doesn't allow employers to pay women less than men for the same work. The argument for paying young adults less for the same work has become increasingly hard to defend.
• Other countries have moved. New Zealand scrapped youth minimum wages years ago. The UK has been progressively narrowing the gap.

This affects hundreds of thousands of young workers across Australia, particularly in:

• Retail — the General Retail Industry Award covers huge numbers of 18-20 year olds currently on junior rates
• Fast food — the Fast Food Industry Award has its own junior rate scale
• Hospitality — the Hospitality Industry Award is one of the biggest employers of young workers
• Pharmacy — pharmacy assistants aged 18-20 are commonly paid junior rates

If you're 18, 19, or 20 and currently being paid less than $25.50/hr (or $31.88/hr as a casual), your pay is about to go up — potentially by $3-9 per hour depending on your age and current rate.

Here's the pay increase for a full-time worker (38 hrs/week) moving from junior rates to the full adult minimum:

Age	Current Rate	New Rate	Weekly Increase	Annual Increase
18	$16.46/hr ($625/wk)	$25.50/hr ($969/wk)	+$344/wk	+$17,888/yr
19	$19.88/hr ($755/wk)	$25.50/hr ($969/wk)	+$214/wk	+$11,128/yr
20	$23.55/hr ($895/wk)	$25.50/hr ($969/wk)	+$74/wk	+$3,848/yr

For casuals, add 25% on top. An 18-year-old casual currently on $20.58/hr would jump to $31.88/hr — a $11.30/hr increase.

The Fair Work Commission's review is ongoing. The most likely timeline is:

• Mid-2026: Final decision handed down as part of (or alongside) the Annual Wage Review
• 1 July 2026 or later: New rates take effect, potentially with a phased transition for some awards

Some awards may transition faster than others. The Commission has the power to set different commencement dates for different awards if it decides a sudden change would cause hardship for particular industries.

We'll update this page as soon as the final decision and dates are confirmed.

If you employ anyone aged 18-20 on junior rates, start planning now:

• Audit your payroll. Identify every employee aged 18-20 currently on junior rates.
• Calculate the cost impact. Use our take-home pay calculator to model the new rates.
• Budget for it. The increase is significant — up to $17,888/year per 18-year-old employee. Factor this into your Q3/Q4 budget.
• Update your pay systems. Your payroll software needs to be updated when the new rates commence. Don't rely on age-based rate tables anymore.
• Communicate with staff. Tell your young workers they're getting a pay rise. It's good for retention.

Even before the change takes effect:

• Check you're being paid correctly under CURRENT rules. Many employers underpay junior workers even against the existing junior rates. Use our underpaid checker to verify.
• Know your award. Some awards already pay 18-20 year olds at or near adult rates. Check what award covers your job.
• Keep your payslips. If you're being underpaid now, you can claim back pay for up to 6 years.
• Watch for the announcement. When the new rates kick in, make sure your employer updates your pay. If they don't, that's wage theft.