The Fair Work Commission will phase out junior pay rates for workers aged 18 to 20 with more than six months’ service in fast food, general retail, and pharmacy, replacing them with full adult pay rates once implemented.

Under the current awards, 20-year-olds earned 90% of the adult rate, 19-year-olds 80%, and 18-year-olds 70% of the adult wage, a gap the reform seeks to close.

Wage increases will roll out over four years, with 18- to 20-year-olds moving to adult rates after a six-month period with an employer; those under 18 retain junior rates.

Industry observers say major employers like McDonald’s and Coles influence entry-level pathways, while SDA officials frame the ruling as a landmark step toward equal pay for young workers.

Government figures, including the treasurer, describe the ruling as a positive outcome aimed at fair and decent wages for Australians, with a sensible phasing period for businesses.

Treasurer Jim Chalmers praised the decision as fair and sensible, enabling gradual adjustment for businesses.

The report credits the Australian Fair Work Commission, with coverage from AAP and reporting by Millie Muroi of The Sydney Morning Herald and The Age.

Employer groups warn the reform could deter hiring by raising wage costs for young workers, while unions argue it promotes fairness and aligns pay with responsibilities.

The decision considers labor market disadvantages facing young people as a factor in the ruling.

The SDA framed the reform as a landmark wage equity move, comparing it to historic steps toward equal pay for 18-year-olds.

SDA National Secretary Gerard Dwyer called it a landmark toward wage equity, noting that 18-year-olds are legally adults in other respects and deserve equal pay for their work.

Industry context notes that retail, fast food, and pharmacy employ over 1.5 million Australians, with a disproportionate share under age 21, highlighting the policy’s potential impact.