Wage Differences Adult and Junior.
Should an 18 year old be paid the same rate as a 21 year old?
The Australian Council of Trade Unions (ACTU) has agreed to a range of reform proposals for junior pay rates, which the ACTU described as “discriminatory”.
The ACTU has said that paying adult wages, to workers aged 18 and over, could help ease pressure on younger workers, who have been particularly hard hit by the cost of living crisis.
The ACTU said that currently a 21-year-old waitress will get paid $29.04 an hour while her 18-year-old co-worker will get paid $16.26 per hour for the same job.
From the young workers point of view, it would be excellent to be paid at the same rate as a 21 year old.
However, if an employer has to choose between an 18 year old, straight from school, and a 21 year old with 3 years experience, how would they choose?
With the current pay rates, as shown on the article, employing an 18 year old would be $9 per hour cheaper, and the 21 year old may lose out on the job opportunity.
With the proposed ACTU rates, having to pay the same rate, it would be logical to employ the more experienced 21 year old, with the 18 year old school leaver losing out on the job opportunity.
Minimum Wage 2024-25
Minimum rates for award and agreement free junior employees from 1 July 2024.
Full time and part-time employees by age:
- Under 16 years: $8.87 per hour.
- 16 years: $11.40 per hour.
- 17 years: $13.93 per hour.
- 18 years: $16.46 per hour.
- 19 years: $19.88 per hour.
- 20 years: $23.55 per hour.
- 21 years+: $24.10 per hour.
The difference for a permanent employee, between an 18 yr old and a 21 year old, is $7.70 per hour.
Casual employees by age:
- Under 16 years: $11.09 per hour.
- 16 years: $14.25 per hour.
- 17 years: $17.41 per hour.
- 18 years: $20.58 per hour.
- 19 years: $24.85 per hour.
- 20 years: $29.44 per hour.
- 21 years+: $30.13 per hour.
The difference for a casual employee, between an 18 yr old and a 21 year old, is $9.55 per hour.
These rates apply from the first full pay period on or after 1 July 2024.