Junior wage rates are changing from 1 December 2026 for some bottle shops, takeaway cafés and fast-food businesses.
However, this is not a general hospitality wage increase.
The change only applies to eligible employees covered by:
The General Retail Industry Award at Levels 1, 2 and 3.
The Fast Food Industry Award.
It does not change junior rates under the Hospitality, Restaurant or Registered Clubs Awards.
Before changing anyone’s pay, the first step is therefore to confirm which award covers the business.
Which businesses are affected?
Business type Likely award December change applies?
Standalone bottle shop Retail Award Yes
Bottle shop operated by a hotel Hospitality Award No
Primarily takeaway café or food outlet Fast Food Award Yes
Primarily sit-down café or restaurant Restaurant Award No
Restaurant or café within a hotel or resort Hospitality Award No
Restaurant or café within a registered club Registered Clubs Award No
Award coverage depends on the nature and operation of the business, not simply its name.
Bottle shops: standalone or hotel-operated?
A standalone bottle shop that is not operated by a hotel is generally covered by the Retail Award. Employees at Retail Award Levels 1, 2 and 3 may therefore be affected by the new junior rates.
A bottle shop operated by a hotel is generally covered by the Hospitality Award. Its employees are not included in this particular change.
This distinction is especially important across NSW and Queensland.
Fair Work advises that Queensland bottle shops can only be operated by hotels under Queensland liquor-licensing arrangements. Queensland bottle-shop employees are therefore generally covered by the Hospitality Award rather than the Retail Award.
The Retail Award change will be more relevant to standalone bottle shops in NSW. Read Fair Work’s bottle-shop coverage guidance.
Food businesses: takeaway or sit-down?
The Fast Food Award generally covers businesses that primarily prepare and sell food or drinks:
For takeaway or delivery.
In packaging that allows customers to consume them elsewhere.
From food courts, shopping centres or retail complexes.
This can include takeaway cafés, pizza shops and other quick-service food outlets.
A café or restaurant that mainly provides food and drinks for customers to consume onsite, or primarily offers table service, is generally covered by the Restaurant Award.
The December change applies to the Fast Food Award. It does not apply to the Restaurant Award.
A café or restaurant located within a hotel or resort is generally covered by the Hospitality Award, even when a separate business operates it. A food outlet within a registered club will generally fall under the Registered Clubs Award.
Those businesses are also outside this particular change.
What changes from 1 December?
From the first full pay period starting on or after 1 December 2026, higher junior percentages apply to employees who:
Are aged 18, 19 or 20.
Have more than six months’ service with their current employer.
Are covered by the Fast Food Award or the relevant Retail Award classifications.
The first-stage rates are:
AgeRetail Award Levels 1–3Fast Food Award1875% of the adult rate75%1985%85%20100%95%
Employees who have not completed more than six months with the employer remain on the existing percentages:
AgeExisting percentage1870%1980%2090%
There is no change for employees under 18.
The percentages will rise in further stages until eligible employees move to the full adult rate by 1 July 2029. View Fair Work’s complete transition tables.
How does the six-month test work?
The service test is based on employment with the current employer.
Previous work for another business in the same industry does not count. If an employee has two jobs, the six-month test is applied separately to each employer.
Service may carry across where there has been a qualifying transfer of business.
This makes accurate commencement dates essential. Payroll needs to know both the employee’s age and their length of service.
What should employers do?
Affected bottle shops and fast-food businesses should complete a payroll review before December.
Check:
The award covering each part of the business.
Employees aged 18 to 20.
Each employee’s original commencement date.
The employee’s award classification.
Whether more than six months’ service has been completed.
The effective date configured in the payroll system.
Penalties, overtime and leave calculations flowing from the new base rate.
Do not assume payroll software will identify the correct award or automatically recognise when an employee passes the six-month threshold.
What about other hospitality awards?
Hotels, pubs, accommodation businesses, sit-down restaurants and registered clubs should not apply the new Retail or Fast Food percentages to their employees unless those employees are genuinely covered by one of those awards.
Their existing award provisions continue to apply.
For example, the Restaurant Award already requires a junior who sells or serves alcohol—including as part of their general waiting duties—to receive the adult rate for their classification. That is an existing Restaurant Award rule, not part of the December change.
The takeaway
The December increase is important, but it is targeted.
It will primarily affect:
Standalone bottle shops covered by the Retail Award.
Takeaway and quick-service businesses covered by the Fast Food Award.
Employees aged 18 to 20 with more than six months’ service.
The safest order is: confirm the award, check the employee’s service, then update the rate.
Payroll causing you headaches?
Award changes, junior rates and service dates can quickly make hospitality payroll more complicated than it should be.
Admyn can take care of the payroll process, help keep your employee setup accurate and make sure rate changes are picked up when they should be.