HR & Employment Law Update - April 2026
End of Junior Rates for Adults: What the FWC Decision Means for Your Business
The Fair Work Commission has ruled to phase out discounted pay rates for 18 to 20 year olds in retail, fast food, and pharmacy. Here is what changes, when, and what employers need to do.
What Was Decided
On 31 March 2026, the FWC Full Bench handed down its decision in AM2024/24, ruling that employees aged 18 to 20 who have completed six months of service with the same employer will be entitled to the full adult minimum wage. The decision applies to three awards: the General Retail Industry Award 2020, the Fast Food Industry Award 2020, and the Pharmacy Industry Award 2020. Under the current system, 18 year olds receive 70% of the adult rate, 19 year olds receive 80%, and 20 year olds receive 90%. Employees under 18 are not affected.
When Does It Take Effect
Changes will be phased in over four years in increments of 5 percentage points every six months, provisionally starting 1 December 2026 and reaching full adult rates by 1 July 2029. The Commission is still finalising transitional arrangements following a submissions process that closed on 17 April 2026. Confirmed dates will be published on the FWC website.
What Employers Should Do Now
Identify all employees aged 18 to 20 on the affected awards and review their service dates
Model the wage cost impact through to 2029 across your current workforce and typical hiring patterns
Check your payroll system can track age and service milestones and trigger rate changes automatically
Watch for confirmed transitional dates on the FWC website and update payroll configurations ahead of December 2026
If you operate under enterprise agreements with junior rate provisions, seek specific advice on how this decision interacts with those agreements
Key Facts
Decision: AM2024/24, handed down 31 March 2026
Awards: General Retail, Fast Food, and Pharmacy Industry Awards
Who benefits: Employees aged 18 to 20 with 6+ months service
Under 18s: No change
Phase-in: Provisionally 1 December 2026 to 1 July 2029
How HALKIN Can Help
Staying across award changes, compliance obligations, and workforce cost implications is exactly what HALKIN does for clients across Australia and internationally. Whether you need support working through the impact of this decision or broader HR advice, our team is available to help.
HALKIN provides employer of record services, co-sourcing solutions, and HR consulting across Australia, New Zealand, the Philippines, the UK, the US, and Mexico. Our HR team works with businesses of all sizes on award interpretation, employment law compliance, performance management, and workforce strategy.
Get in touch with the HALKIN team to discuss how we can support your business.