The Fair Work Commission (FWC) has handed down its long-awaited decision on junior pay rates under the General Retail Industry Award 2020 (GRIA), following an application by the Shop, Distributive and Allied Employees Association (SDA) to increase wages for employees under 21.

While changes will apply to employees aged 18–20 from December 2026, the final outcome avoids more significant cost increases for independent retailers than originally proposed.

MGA actively opposed the application and advocated strongly on behalf of members throughout the process. Importantly, evidence provided by MGA members played a critical role in shaping a more balanced decision, including maintaining current pay rates for employees under 18.

While we respect the role of the Commission, this outcome will still place additional financial pressure on independent retailers at a time when businesses are already facing rising operational costs.

What Has Been Decided

The FWC’s decision includes:

No Change for Employees Under 18

There will be no changes to junior pay rates for employees under the age of 18.

In reaching this position, the Commission acknowledged the importance of maintaining employment pathways, education and training opportunities for younger workers, as well as their vulnerability in the workforce.

Changes for Employees Aged 18–20

For employees aged 18 to 20, the FWC has ruled that they will transition to the full adult minimum wage.

This represents a major shift from the current GRIA structure, where these employees are paid a percentage of the adult rate based on age.

Importantly, these changes will only apply to employees who:

• Are aged between 18 and 20, and
• Have been employed by the same employer for more than six months

Employees with less than six months’ service will remain on the existing junior pay rate system.

Implementation Timeline

The FWC has proposed a phased approach to implementing these changes, commencing from 1 December 2026, with full implementation by 1 July 2029.

It is important to note that this timeline is draft only and subject to further consultation.

While MGA is disappointed with the outcome, the Commission did acknowledge the significant impact these changes may have on small and independent retailers.

We also extend our sincere thanks to the MGA members who contributed as witnesses during the proceedings. Their evidence—provided in what was often a challenging environment—played a critical role in ensuring a more balanced outcome.

In particular, this contribution helped secure the decision to:

• Maintain current pay rates for employees under 18, and
• Prevent the full adoption of the SDA’s proposed changes

What This Means for You

At this stage, no immediate action is required.

The implementation details are not yet finalised, and changes will not begin until late 2026 at the earliest.

MGA will continue to advocate on behalf of members throughout further Fair Work Commission consultations, push for a practical and manageable implementation timeline, and provide clear, step-by-step guidance once final details are confirmed.

Need Support?

MGA Independent Businesses Australia is here to support you through these changes.

If you have any questions about how this decision may impact your business, please contact our Employment Advisory  team for tailored advice and assistance on 1800 888 479 or submit an online enquiry