Junior wage rates: effective 1 December 2026
The Fair Work Commission has finalised the implementation arrangements for changes to junior rates under the General Retail Industry Award 2020 (GRIA).
The changes will be phased in from 1 December 2026, with junior rates for eligible employees aged 18 and over progressively increasing until they reach the full adult rate.
For retailers, the changes mean now is the time to identify affected employees, review employment dates and ensure payroll systems are ready for the first change.
What has the FWC decided?
The FWC’s 26 August 2026 determination confirms the transition timetable for junior rates under the GRIA. The determination varies the Award and sets out the new junior-rate arrangements.
The changes apply to junior employees aged 18 and over who are classified at Retail Employee Levels 1, 2 or 3 and who have been employed by their current employer for more than six months.
Employees aged 18–20 who have been with their current employer for six months or less will remain on the existing junior percentage until they reach the six-month threshold.
There is no change to the junior rates for employees under 18.
When do the changes take effect?
The transition will occur in stages outlined in the table below.
| Age | % of adult hourly rate from | |||||
|---|---|---|---|---|---|---|
| 1 December 2026 to 30 June 2027 | 1 July 2027 to 30 November 2027 | 1 December 2027 to 30 June 2028 | 1 July 2028 to 30 November 2028 | 1 December 2028 to 30 June 2029 | 1 July 2029 | |
| Under 16 years of age | 45 | 45 | 45 | 45 | 45 | 45 |
| 16 years of age | 50 | 50 | 50 | 50 | 50 | 50 |
| 17 years of age | 60 | 60 | 60 | 60 | 60 | 60 |
| 18 years of age and employed by the employer for 6 months or less1 | 70 | 70 | 70 | 70 | 70 | 70 |
| 18 years of age and employed by the employer for more than 6 months1 | 75 | 80 | 85 | 90 | 95 | 100 |
| 19 years of age and employed by the employer for 6 months or less1 | 80 | 80 | 80 | 80 | 80 | 80 |
| 19 years of age and employed by the employer for more than 6 months1 | 85 | 90 | 95 | 100 | 100 | 100 |
| 20 years of age and employed by the employer for 6 months or less1 | 90 | 90 | 90 | 90 | 90 | 90 |
| 20 years of age and employed by the employer for more than 6 months1 | 100 | 100 | 100 | 100 | 100 | 100 |
NOTE 2: Percentages in the above table take effect in relation to a particular employee from the start of the employee’s first full pay period starting on or after the specified date.
The official FWC determination contains the complete junior-rate table and should be used when checking the applicable percentage for an individual employee.
View the FWC Junior Rates Determination
What does “Retail Employee Level 1, 2 or 3” mean?
The GRIA has a classification structure, with eight retail employee levels. The FWC’s junior-rate provision applies specifically to Retail Employee Levels 1, 2 and 3.
If you’re unsure about an employee’s classification, refer to the classification provisions in the GRIA or seek advice before applying the junior rate.
Don’t overlook the six-month rule
One of the most important changes for payroll is that the new rates depend not only on the employee’s age, but also on how long they have been employed by their current employer.
For example, from 1 December 2026:
- an 18-year-old employed for six months or less remains at 70%
- an 18-year-old employed for more than six months moves to 75%
- a 19-year-old employed for six months or less remains at 80%
- a 19-year-old employed for more than six months moves to 85%
- a 20-year-old employed for six months or less remains at 90%
- a 20-year-old employed for more than six months moves to 100%.
This means employers will need to keep track of employees who subsequently reach six months’ service, not just those who qualify on 1 December.
What should retailers do now?
1. Identify affected employees
Create a list of employees aged 18–20 who are currently paid junior rates.
2. Check classifications
Confirm their GRIA classification, and identify those that are Retail Employee Level 1, 2 or 3.
3. Check employment dates
Identify when each employee reaches six months’ employment with your business.
4. Review your payroll settings
Develop a calendar to implement the changes or check that your payroll system can apply the staged changes for employees reaching the six-month threshold.
5. Check your pay cycle
The determination takes effect for an individual employee from the start of their first full pay period commencing on or after 1 December 2026.
For example, if your first full pay period starts 7 December 2026 then that’s when you start the new pay rate from.
Important: This pay-cycle rule applies to the implementation of these changes. Future increases based on an employee reaching the next age threshold take effect from the date of the employee’s birthday, rather than from the start of the next pay cycle.
6. Review rates at each transition
The changes are being phased in over several transition dates. Once you have updated an employee’s rate, review it again at each subsequent transition date to check whether a further increase applies based on the employee’s age and length of service.
Employers should also monitor an employee’s birthday and six-month service milestone, as these can affect the applicable junior rate.
Don’t wait until December
Use the coming weeks to identify affected employees, check their employment dates and classifications, and speak with your payroll provider or payroll adviser about how the staged changes will be implemented.
