Could junior rates of pay be abolished?

Posted 10 Apr

Could junior rates of pay be abolished?

“It's about ensuring that anyone who's 18 years or older gets paid the adult rate of pay. They can drink, they can drive, they can vote — we as a community treat them as adults on every level, except when they walk in the door to work.”  Gerard Dwyer, National secretary for the SDA

The Shop, Distributive and Allied Employees' Association (SDA or ‘Shoppies’) most recent campaign focuses on the right for young Australian workers to be paid the same as their older colleagues.

Under the current wage rules for junior rates, workers under 21 years of age only get paid a percentage of the rate earned by older workers.

- Workers under 20 are paid 90% of the adult award rate.

- Workers who are 19 are paid 80% of the award rate.

- Workers who are 18 get just 70% of the full award rates in retail, fast food and pharmacies.

There’s a growing weight of opinion from younger workers and their unions that people should earn the same wage, regardless of their age.

The Fair Work Commission held a hearing on the future of junior rates, but, at present, no decision has been handed down.

How could a change to junior rates affect your business?

If you employ a large number of younger workers under the age of 21, the abolishment of junior rates could have a significant impact on your payroll.

With the junior rates removed, all workers, regardless of their age, would be paid at the same standard rate. This would increase your payroll costs and impact your cashflow.

Talk to us about the impact of a change to junior wage rates

If you’re worried about the potential impact of the removal of junior rates, and the subsequent increase in wage costs, book some time for a chat with our team.

We can run scenarios to outline the potential costs and the overall impact on your cashflow.

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