Major changes coming to junior pay rates – BeanScene

The Fair Work Commission (FWC) has ruled workers aged between 18 and 20 in retail, fast food, and pharmacy will no longer be paid discounted junior rates, and will instead be paid full adult wages.

Junior pay rates are wages paid to younger workers, usually under 21, where they are paid a set percentage of the minimum award.

Eighteen-year-olds are paid 70 per cent of the award, which rises to 80 per cent for 19-year-olds and 90 per cent for 20-year-olds respectively.

National Secretary of the Shop, Distributive, and Allied Employees Association (SDA), Gerard Dwyer, told ABC the decision to scrap junior pay rates is a landmark decision “up there with the introduction of equal pay for women in the 1970s”.

The FWC’s provisional ruling for the timing and implementation of the reform is that the first variation will take effect from 1 December, with the full variation to be phased in for all Australians between 18 and 20 years old by 1 July, 2029.

Federal Treasurer, Jim Chalmers, says the government welcomes the ruling.

“This decision recognises that there was an unfairness when it came to younger workers who are over 18 in those sectors, while also ensuring a practical transition for employers as the new arrangements are introduced,” he says.

More than 80 witnesses across three industries were consulted, with advocates for the change arguing adult wages should be paid to younger staff due to the legal ability to enlist in the armed forces at 17, and vote, drive, smoke, and drink alcohol from 18.

Data from the Australian Bureau of Statistics indicates around 500,000 workers will be eligible for raised wages as a result of the change.