The Fair Work Commission has upcoming changes to junior wages in the Fast Food Award.

Here’s the plain-English version — no jargon, no confusing legalese — just what it means for your business and your team.

What’s Changing?

Right now, young employees covered under the Fast Food Award who are under 21 are paid a percentage of the adult pay rate for their classification. It’s a scaled system based on age, and it’s been the norm in the industry for a long time.

That’s about to shift. The Fair Work Commission has decided that employees aged 18, 19, and 20 will be entitled to the full adult pay rate for their classification — but only once they’ve been with your business for more than 6 months.  The Commission has indicated that these changes will be introduced gradually, with further hearings to be held about how and when this will happen. However, the Fair Work Commission has said that the changes could start from 1 December 2026 – so watch this space.

A few things that stay the same:

  • Employees aged 18 to 20 who have been with you for less than 6 months stay on their current junior rate.
  • Employees under 18 are not affected at all.

The Commission has said these changes will be introduced gradually following further hearings, with a likely start date of 1 December 2026.

What This Means in a Busy Hospitality Kitchen

Let’s be honest: hospitality runs on young workers. Your 18 and 19-year-olds  might be your most reliable casual staff — the ones who’ve learnt the systems, know the menu, and show up on a Saturday morning. And many of them have been with you well beyond the six-month mark… hopefully!

Once these changes take effect, those employees move to the adult rate. For a single employee that might not feel dramatic. But add it up across your roster and factor in a busy December trading period — which is exactly when these changes are expected to land — and the impact on your weekly wage bill becomes very real, very quickly.

And here’s the compliance risk that every hospitality owner needs to take seriously: if you don’t update their pay rate at the right time, you’re underpaying them. Underpayment claims in hospitality are among the most common issues investigated by the Fair Work Ombudsman.

Three Things to Do Before December 2026

1. Know who’s affected on your team right now. Pull a list of every employee aged 18 to 20. Note their date of birth and when they started with you. Work out who will have crossed the six-month threshold by December 2026. Flag anyone who starts between now and then who could reach that milestone.

2. Check your payroll is set up to handle award rate changes. Whether you’re using Xero, MYOB, or another payroll system, make sure it’s configured to apply the correct classification rates. Award rate changes that aren’t reflected in the system don’t fix themselves — they quietly accumulate into a compliance problem.

3. Talk to your bookkeeper now, not in November. Your bookkeeper should be on top of award changes and proactively flagging what’s coming for your specific business. If that conversation hasn’t happened yet, it’s worth having it today. The businesses that get into trouble are the ones that react at the last minute.

Running a Food Business Is Hard Enough Without Compliance Surprises

At Restaurant Bookkeepers Australia, we work exclusively with food businesses — restaurants, cafes, fast food, takeaway, catering, franchises, pubs and bars. We understand your rosters, your award obligations, and the pressures that come with running a hospitality business.

We keep your books and payroll up to date in real time, flag changes like this one well in advance, and talk to you in plain language about what it means for your numbers — no confusing reports, no jargon, no surprises.

If you’re not confident your payroll is ready for what’s coming, let’s talk now while there’s still plenty of time to prepare.

📞 Book a call with our team via our CONTACT page and let’s make sure your business is in the best possible shape heading into December 2026.

This article is based on information published by the Fair Work Ombudsman and Fair Work Commission in April 2026. Changes are subject to further hearings and confirmation of implementation dates. Seek professional advice specific to your business circumstances.