Wage structures in the retail industry are about to undergo a major overhaul, with the Fair Work Commission deciding that workers aged 18 and over must be paid the full adult rate.

This change to the General Retail Industry Award 2020 will begin implementation from December and will be phased in, with the full changes expected to be in place by 2030.

More than 500,000 workers across the fast food, retail, and pharmacy sectors will be eligible for a pay rise of up to 42 per cent.

The Australian Retail Council, the country’s premier retail body, said that junior rates have had a positive effect on the country.

“Junior rates have served Australia well for generations,” ARC CEO Chris Rodwell said. “They recognise that younger workers often have little or no workplace experience and help employers, particularly small businesses, give young people their first opportunity.” 

“Crucially, junior rates for workers aged 17 and under will remain in place. That’s important. Early work experience is critical, and we cannot afford to make it harder for young Australians to get their first job.” 

Rodwell added that the news comes at a challenging time for the retail industry, with escalating rent prices, insurance costs, and strained supply chains in the wake of the Iran conflict.

“Retail has long been the training ground for Australia’s future workforce,” Rodwell said. “Small retailers told us clearly that junior rates help them take a chance on young people who may not yet have experience.

“Junior pay structures have long provided a balanced pathway that supports both youth employment and business viability.”