Australia's Fair Work Commission has moved to abolish junior pay rates for workers aged 18 to 20 in the retail, fast-food, and pharmacy sectors.
The landmark ruling mandates that the employees be paid the full adult wage, a move estimated to benefit over 500,000 young Australians with pay increases of up to 42%.
Led by Deputy President Terri Butler, the full bench found that young adults often perform identical duties to their older counterparts, including supervisory and managerial roles.
The commission rejected the notion that 18-to-20-year-olds possess a "soft skills deficit" that justifies lower pay.
Under the new framework, the adult rates will be phased in over four years, beginning this December and reaching full parity by July 2029.
To mitigate potential hiring biases, the commission stipulated that workers must complete six months of employment before qualifying for the adult rate.
SDA National Secretary Gerard Dwyer hailed the move as a "landmark" comparable to the 1970s equal pay for women, arguing that 18-year-olds who can vote and drive should not be treated as "second-class citizens."
Australian Chamber of Commerce and Industry chief Andrew McKellar expressed disappointment, warning that the increased wage bill for major employers like Woolworths and McDonald’s could deter businesses from hiring younger, less experienced staff.