Wage rates

Could junior rates of pay be abolished?

The Shop, Distributive and Allied Employees’ Association (SDA) has launched a national campaign calling for the abolition of junior pay rates for workers aged 18 and over.

We outline the details of the campaign and the potential impact on wage costs.

Under the current award system, employees under 21 are typically paid a reduced percentage of the adult rate. In sectors such as retail, fast food and pharmacy, the structure generally operates as follows:

Under 20 years old – approximately 90% of the adult award rate
19 years old – approximately 80% of the adult award rate
18 years old – approximately 70% of the adult award rate

The union argues that this structure no longer reflects how young adults participate in society.

“It’s about ensuring that anyone who’s 18 years or older gets paid the adult rate of pay. They can drink, they can drive, they can vote — we treat them as adults in every other part of life, except when they walk in the door to work.”

Gerard Dwyer, National Secretary, SDA

Supporters of reform say wage parity would recognise the contribution of younger workers and address perceived inequities in the labour market.

Where the issue currently stands

The Fair Work Commission has held hearings on the future of junior rates.

At the time of writing, no determination has been handed down, and the current wage structure remains in place.

However, the discussion signals a broader policy shift. The treatment of junior wages is increasingly being examined through the lens of fairness, workforce participation and cost-of-living pressures for younger Australians.

What it could mean for employers

For businesses that rely heavily on younger employees, particularly in retail and hospitality, the removal of junior rates could materially change wage structures.

If junior rates were abolished:

Workers aged 18–20 would move to full adult award rates
Payroll expenses would increase
Cashflow planning and rostering strategies may need to be revisited

For some employers, the change could represent a significant uplift in labour costs, particularly where younger workers form a core part of the workforce.

Preparing for possible changes

While no decision has been made, it is prudent for businesses to understand the potential financial impact should junior wage rates be removed.

Scenario modelling can help answer key questions:

What would payroll look like under adult rates for all employees?
How would the change affect margins and staffing structures?
What adjustments may be needed to pricing, rostering or workforce planning?

Talk to Us

If junior wage rates are relevant to your business, it is worth reviewing the potential exposure now rather than waiting for a final decision.

Our team can:

Model payroll cost scenarios
Assess the cashflow implications
Help you plan for possible changes to employment costs

Early preparation allows you to respond strategically if the regulatory landscape shifts. Talk to us about the impact of a change to junior wage rates.