The Australian hospitality industry employs thousands of people across the country. There are multiple regulations and laws governing this industry sector and it can be challenging for small businesses to keep up with the changes. To help simplify the complex award rates, we have created this essential guide for hospitality business owners.
Hospitality Award
The Hospitality Industry (General) Award 2020 [MA000009], is set by the Fair Work Commission, and delivers essential standards for employee compensation. This guide highlights the 2025 updates on entitlements and pay rates. If you need further help or support, contact Peninsula today.
Originally introduced by the Australian Industrial Relations Commission, the modern Hospitality Award serves as a cornerstone for fair employee compensation in various hospitality roles.
Coverage
The hospitality industry covers employers and their employees who fit within the classifications of the award.
The hospitality industry means:
- Tourist or residential accommodation including resorts, motels, hotels, serviced apartments, and caravan parks
- Holiday apartment complexes
- Wine bars, saloons, and taverns
- Casinos
- Caterers
- Nightclubs, function centres, convention facilities and restaurants connected with an employer covered by the Hospitality Award (e.g. hotel restaurant)
Examples of employees covered by the Hospitality Award include:
- Waiter and waitress
- Chefs, apprentice chefs, cooks, kitchen hands
- Catering employees working for a catering business
- Housekeepers, doorpersons and concierge staff
- Front office, clerical, and reception staff
- Managerial staff who are not senior management
- Leisure attendants
- Security officers and storepersons
- Casino staff, including gaming staff, equipment technicians, security and finance officers
- Gaming attendants
- Pub owners
- Maintenance and gardening staff.
The Hospitality Award also covers labour hire businesses and their employees who are placed within an organisation in the hospitality industry. It is important you don’t get confused between the Hospitality Award, the Fast Food Industry Award, and the Restaurant Industry Award. If you feel your business falls under either of these awards read our guides for more information.
2025 Hospitality Award Rates – What employers need to know
The latest update present a structure of pay rates that consider factors like age, job role, and working hours. It's essential for employers to grasp these details to ensure compliance and uphold equitable workplace practices. These updates reflect the adjustments in the cost of living and the hospitality industry’s desperate demand for skilled labour.
Minimum wage 2025
Each year, the Fair Work Commission reviews both the National Minimum Wage and the minimum pay rates under awards (annual wage review). Most changes begin on the first full pay period on or after 1 July.
The National Minimum Wage applies to employees not covered by an award or registered agreement. This is the minimum pay rate provided by the Fair Work Act 2009 and is reviewed each year.
On 1 July 2025, the National Minimum Wage increased to $24.95 per hour or $948 per week.
Some awards contain introductory pay rates for new employees in their industry. These rates generally apply for a limited time until an employee progresses to their next level. These introductory rates may be less than the National Minimum Wage.
Detailed rate analysis by age and role: Enhancing understanding for employers
In the hospitality sector, the complexities of award rates can be daunting. It's crucial for employers to understand not just the basic hourly rates, but also how these rates vary depending on the shift, position, and penalty rates. Here’s an extended breakdown:
Introductory and Youth Rates:
| Role | Pay Rate |
|---|---|
| Under 17 in non-office roles | The base hourly rate starts at $12.14, with increments for late hours and weekends. |
| Under 16 in office roles | This rate begins at $10.93 and adjusts similarly for unsocial hours. |
Level-Based Rate Structure:
| Level | Pay Rate |
|---|---|
| Level 1 (e.g., Food and Beverage Attendant Grade 1) | The base rate for under 17 years is $12.48, increasing for evening shifts and weekends. |
| Level 2 (e.g., Cook Grade 1) | Starting at $12.93 for under 17 years, with additional pay for night shifts and weekend work. |
| Level 3 (e.g., Guest Service Grade 3) | For under 17 years, the hourly rate is $13.35, with higher rates for unsocial hours. |
| Level 4 and 5 Roles | These higher levels, including supervisory positions, see a commensurate increase in base pay. For example, a Level 5 Food and Beverage Supervisor under 17 years starts at $14.94 per hour. |
Rates for 18 to 20-Year-Olds:
| Level | Pay Rate |
|---|---|
| Level 1 Roles for 18-Year-Olds | The base rate is around $17.47 per hour, increasing for weekend shifts. |
| Level 2 and Above | For example, a Cook Grade 1 at 18 years starts at approximately $18.10 per hour, with higher rates for late hours and weekends. Rates progressively increase with each year of age. |
Shift Variations and Penalty Rates:
| Shift Type | Pay Rate |
|---|---|
| Weekday Evenings (7pm to Midnight) | There’s an additional $2.81 per hour on top of the base rate. |
| Night Shift (Midnight to 7am) | This shift attracts an extra $4.22 per hour on top of the base rate. |
| Saturday Work | Rates are enhanced to 125% of the base rate. |
| Sunday Shifts | These attract the highest premiums; the same Level 1 employee would earn 150% of their base rate. |
Adult Rates (21 Years and Above):
- Adult workers generally receive higher base rates, reflecting their experience. For example, a Level 1 adult worker might start at a base rate higher than younger counterparts.
- Evening, night shifts, and weekend work attract additional pay. An adult in a Level 1 role working a Sunday shift could earn significantly more than the base rate.
Understanding these detailed aspects of the Hospitality Award rates is not just about compliance but also about recognising and valuing the diverse roles and contributions of employees in the hospitality sector. Employers need to be adept at navigating these complexities to ensure a fair and motivating work environment.
Analysis for casual employees by age and role in the hospitality industry
In the hospitality sector, casual employees have distinct award rates that reflect the flexible nature of their employment. Here's a breakdown focusing on casual employees, including variations based on age and role:
Casual Loading:
- Casual employees receive a higher base hourly rate due to 'casual loading,' which compensates for the lack of benefits like paid leave and job security. This loading is typically an additional percentage on top of the base rate.
Rates for Younger Casual Employees (Under 18 Years):
- Introductory and Level 1 Roles: For example, a casual food and beverage attendant under 17 might start at a base rate of $12.14 per hour, plus a casual loading (often 25%), making it approximately $15.18 per hour.
- Evening and Weekend Penalties: These rates increase during evening and weekend shifts. For instance, the same employee might earn more on a Sunday due to additional penalty rates.
Rates for 18 to 21-Year-Old Casuals:
- Level 1 to Level 5 Roles: As age and experience increase, so do the base rates. An 18-year-old casual employee in a Level 1 role could start at around $16.26 per hour plus casual loading, with higher rates for late hours and weekends.
- Shift Penalties: The pay rates for evening, night, and weekend work are higher, with the penatly applied on the ordinary hourly rate.
Adult Casual Rates (21 Years and Above):
- Adult casual workers generally receive the highest base rates. A Level 1 adult casual employee's base rate will be higher than that of younger employees, plus the casual loading.
- Penalty Rates for Adults: Adult casual workers also benefit from increased pay for unsocial hours, with the highest premiums typically paid for Sunday shifts.
Variations Across Roles:
- Different roles within the hospitality industry have distinct base rates for casual employees. For example, skilled roles like chefs may have higher base rates compared to entry-level positions.
Compliance for Employers:
- It's imperative for employers to adhere to the correct award rates to remain compliant with Australian labour laws and to value the contribution of casual employees fairly.
Understanding casual employee rates in various roles and age groups is vital for employers in the hospitality sector to ensure fair compensation for all employees.
Get help for your hospitality business today
If you’re concerned or confused about pay rates or penalties in your hospitality business, then it’s time to reach out to the experts. Peninsula has worked with hundreds of hospitality businesses and employers in Australia and helped them understand pay rates, penalties, and employment contracts.
Our team of dedicated members is always available to answer your questions, offer you resources and training, and support you every step of the way.
From hiring to firing, we have resources for every stage of the employee lifecycle. Contact Peninsula today to get your questions answered.
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