Junior pay rates for many 18, 19 and 20 year olds in retail, fast food and pharmacy are about to rise. From the first full pay period starting on or after 1 December 2026, workers in that age group who have been with their employer for more than 6 months move a step closer to the adult rate, and junior rates for them are phased out by 1 July 2029, according to the Fair Work Ombudsman.
The Fair Work Commission published the final determinations for the General Retail, Fast Food and Pharmacy awards on its case page on 30 October 2026, alongside corrections dated 29 October that confirm the changes come into operation on 1 December 2026 (retail correction PR815940). For young people saving for or applying for their first car loan, this is one of the few pay changes this year that is already locked in, with a known date and a known percentage.
Who gets the increase on 1 December
The change applies to three awards, and only to some classifications in two of them, as set out by the Fair Work Ombudsman:
- General Retail Industry Award: retail employee levels 1, 2 and 3 only.
- Fast Food Industry Award: junior employees covered by the award.
- Pharmacy Industry Award: pharmacy assistants at levels 1 and 2 only.
To qualify for the higher percentage you need to be aged 18 to 20 and to have worked for your current employer for more than 6 months. Pay for 18 to 20 year olds with 6 months or less with their employer does not change, and there are no changes to minimum rates for employees under 18 (Fair Work Ombudsman).
Service with a different employer in the same industry does not count. If you have two jobs, you can be on the higher rate in one and the junior rate in the other until you pass 6 months in the second. Service does carry over if there is a transfer of business (Fair Work Ombudsman).
The new junior pay rates from 1 December 2026
For employees with more than 6 months with their employer, the retail determination PR813655 and fast food determination PR813654 set these minimums as a share of the adult rate from 1 December 2026 to 30 June 2027:
- Age 18: 75%, up from 70% under the current retail and fast food award tables.
- Age 19: 85%, up from 80% under both awards.
- Age 20, fast food: 95%, up from 90%.
- Age 20, retail levels 1 to 3: 100%, which the current retail award already pays to 20 year olds with more than 6 months with their employer, so there is no change at that age in retail.
The steps continue each July and December until 1 July 2029, when an 18 year old with more than 6 months of service reaches 100% of the adult rate. A 19 year old in retail or fast food reaches 100% from 1 July 2028 (retail determination, fast food determination). Pharmacy assistants follow a similar schedule, starting at 75%, 85% and 95% for ages 18, 19 and 20 from 1 December 2026 (Fair Work Ombudsman).
What the increase is worth: our calculation
The current minimum adult weekly rate for a full time Retail Employee Level 1 is $1,056.80, or $27.81 an hour (General Retail Industry Award, clause 17.1). The Fast Food Employee Level 1 adult rate is the same, $1,056.80 a week (Fast Food Industry Award, clause 15.1).
Using those adult rates, we worked out the minimum full time weekly pay before and after 1 December for a worker with more than 6 months with their employer. These are our calculations from the award figures, rounded to the cent, before tax:
- 18 year old, retail or fast food level 1: $739.76 now (70%), $792.60 from 1 December (75%).
- 19 year old, retail or fast food level 1: $845.44 now (80%), $898.28 from 1 December (85%).
- 20 year old, fast food level 1: $951.12 now (90%), $1,003.96 from 1 December (95%).
Each 5 point step is worth $52.84 a week at this classification (5% of $1,056.80), or $2,747.68 a year gross for a full time worker paid for 52 weeks. For an 18 year old who stays with the same employer through to July 2029, the full move from 70% to 100% is worth $317.04 a week at today's adult rate. Adult rates can change in future years, so treat that last figure as an illustration rather than a forecast.
Part time and casual workers get the same percentage step on their hourly rate. At level 1, 5% of the $27.81 adult hourly rate is about $1.39 an hour. Casuals under both awards also receive a 25% loading on top of the minimum hourly rate (retail clause 11.1, fast food clause 11.2).
What it could mean for a car loan application
The following is our general interpretation, not lender policy. A lender assessing a car or personal loan looks at income it can verify, your living costs and your existing debts, and then asks whether the repayment still fits. A higher base rate can help with that test, but only once it shows up in your pay records.
- Timing. The new rate starts from your first full pay period beginning on or after 1 December, so the first payslip showing it may land in early to mid December, depending on your pay cycle.
- The 6 month rule. If you are close to 6 months with your employer, the higher rate starts only once you pass that point. Check your start date before you count on it.
- Second jobs. Income from a second job in the same industry may still be on the lower junior rate for a while.
- After tax. The figures above are gross. Your take home increase will be smaller after tax.
- Buffer. Moneysmart suggests checking whether you could still afford a loan if the rate rose by 2% or 3% (Moneysmart). A pay rise is a good time to build that margin, not to stretch to the limit.
If you are planning your first car, our first car buyer guide covers the basics, and our explainers on how lenders assess casual income and applying on probation or in a new job cover the two situations young workers most often face. You can test a repayment against your new pay with our car loan calculator, or compare options on our car loans and personal loans pages.
How to check your own rate
Use the Fair Work Ombudsman's Pay and Conditions Tool or the updated pay guides for each award, selecting a date on or after 1 December 2026 (Fair Work Ombudsman). Confirm your award, classification level, age and start date with your employer, then look for the change on your first December payslip.
This article is general information only and does not take your personal circumstances into account.
