Half a Million Young Workers in Australia to Recieve Pay Increase

by Insider Guides | Apr 1, 2026

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If you’re working (or planning to work) in retail or fast food while studying in Australia, a major pay change could soon affect you.

The Fair Work Commission has announced a decision to phase out “junior pay rates” for some young workers, meaning higher wages for many international students in specific industries.

What are junior pay rates?

In Australia, workers under 21 are often paid less than the full adult wage, even if they’re doing the same job.

For example, under current rules:

  • 18-year-olds earn about 70% of the adult rate
  • 19-year-olds earn 80%
  • 20-year-olds earn 90%

What’s changing?

The Fair Work Commission has ruled that workers aged 18 and over should gradually move to full adult pay rates.

Key points:

  • The change affects the Fast Food Industry Award 2020, General Retail Industry Award 2020 and Pharmacy Industry Award 2020
  • Around 500,000 workers could benefit
  • It will be phased in over four years
  • Workers may need at least six months’ experience with an employer to qualify

Importantly, workers under 18 will still be paid junior rates.

Why is this happening?

The decision is based on the idea that once you’re legally an adult, you should be paid like one.

Supporters argue that:

  • Young adults face the same cost-of-living pressures (rent, transport, food)
  • They often do the same work as older colleagues
  • Lower pay based on age alone is unfair

Unions have described the change as a “landmark” step toward fairer wages.

What does this mean for international students?

For many international students, this is good news.

You could benefit if you:

  • Are 18–20 years old
  • Work in the industries detailed above
  • Stay in the same job for several months

However, some employer groups warn businesses may reduce hiring or shifts due to higher wage costs, though this isn’t guaranteed.

When will this happen?

The changes won’t happen overnight. They’ll be introduced gradually from December 2026, with full effects expected by around 2029.

That means students starting work now may see their pay increase over time.

Remember to be aware of your rights

This announcement is a reminder to always:

  • Check your award pay rate
  • Know your rights under Australian workplace laws

In Australia, even part-time and casual student jobs come with strong workplace protections, and they’re continuing to improve.

Insider Guides

Insider Guides are high-quality, best practice guides to ensure students are prepared, welcomed, connected and supported in Australia.