Awards and award rates were developed by the Federal Government in Australia to emsure fair pay to workers in different industries.
The award system ensures every industry is regulated, and workers are compensated accordingly. These awards set out wages, allowances, overtime, shift breaks, and public holiday rates for various industries including the restaurant industry.
It’s very easy for small business owners to get tripped up, resulting in underpayments or errors. Sometimes it can also be confusing for restaurant owners to know whether their employees fall under the Restaurant Industry Award [MA000119], the Fast Food Industry Award or the Hospitality Industry Award.
Peninsula has worked with thousands of restaurant owners in Australia and supported them in understanding staff classification, pay rates, and allowances. In this guide, we breakdown the coverage of the Restaurant Industry Award, pay rates, and the difference between Restaurant and Hospitality Award. If you need help with paying your staff accurately, contact Peninsula today.
Coverage
The Restaurant Industry Award forms the backbone of wage and condition standards in the restaurant sector. It encompasses roles ranging from entry-level to highly skilled positions, ensuring workers are fairly compensated for their efforts and skills.
The restaurant industry means:
- Businesses that sell food and beverages to be consumed on the premises
- Restaurants, catering by a restaurant
- Cafes, where a business sells food and beverages to be consumed on the premises and/or offers table service
- Reception centers
- Tea rooms
- Night clubs
- Roadhouses providing a sit-down service (if they are run as a separate business to a petrol station)
Examples of employees covered by the Restaurant Industry Award include:
- Waiters and waitresses
- Chefs, apprentice chefs, cooks, and Kitchen hands
- Baristas in eat-in cafes
- Clerical and office employees
- Security and storeroom employees
- Handypersons
The Restaurant Industry Award also covers labour hire businesses and their employees who are placed with an organisation in the restaurant industry.
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.
As of 1 July 2025, the National Minimum Wage is $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.
Restaurant industry award 2025 pay rates
The Restaurant Industry Award 2025 categorises pay rates by job level, employment type (full-time, part-time, and casual), and includes specific provisions for penalty rates. Here’s an expanded look at these rates, providing insights into the hourly wages across different levels and employment types.
1. Chef Pay Rates by Level:
Level 6 Chef (Senior Roles):
| Employment Type | Pay Rate |
|---|---|
| Full-Time/Part-Time: | The hourly rate for a Level 6 chef reflects their advanced skills and leadership roles. For example, the rate could be around $30.68 per hour. |
| Casual: | Including casual loading (usually an additional 25%), the rate might increase to approximately $38.35 per hour. |
Level 4 and 5 Chef (Mid-Level Roles):
| Employment Type | Pay Rate |
|---|---|
| Full-Time/Part-Time: | Mid-level chefs can expect an hourly rate in the range of $28.12 to $29.88, depending on their exact level and experience. |
| Casual: | With casual loading, this rate could increase to around $35.15 to $37.35 per hour. |
2. Kitchen Hand and Entry-Level Staff Pay Rates:
| Employment Type | Pay Rate |
|---|---|
| Full-Time/Part-Time: | Entry-level positions like kitchen hands might have hourly rates starting from $24.95. |
| Casual: | Including casual loading, their rate could be around $31.19 per hour. |
3. Café Staff Pay Rates:
Baristas and Wait Staff:
| Employment Type | Pay Rate |
|---|---|
| Full-Time/Part-Time: | Depending on experience, hourly rates can range from $25.85 to $26.70 |
| Casual: | With loading, these rates might range from $32.31 to $33.38. |
4. Penalty Rates:
| Employment Type | Pay Rate |
|---|---|
| Weekend Work | Employees working on weekends may receive higher rates, for example time and a half but this depends on the day and award stipulations. |
| Night Shifts: | Additional pay rates apply for night shifts, typically after a specific hour in the evening until early morning. |
5. Full-Time vs. Part-Time vs. Casual:
| Employment Type | Pay Rate |
|---|---|
| Full-Time | Employees receive a steady hourly rate with benefits such as annual leave and sick leave. |
| Part-Time | Similar hourly rates to full-time staff but with pro-rata benefits based on their hours worked. |
| Casual: | Higher hourly rates due to casual loading which compensates for the lack of certain benefits. |
Selecting the right award
Sometimes you may not know the exact award your business falls under. Restaurant owners can get confused between the Fast Food Industry Award and the Hospitality Industry Award.
To simplify things for you, if you run a standalone restaurant, you fall under the Restaurant Industry Award. If your restaurant is connected to a hotel, you’re covered by the Hospitality Industry Award. For further information on the Hospitality Industry Award, you can check out our comprehensive guide containing coverage, pay rates, and entitlements. If you need to know more about the Fast Food Industry Award, read our exclusive guide for employers and business owners.
Understanding award coverage and pay rates is crucial for both employers to ensure compliance and for employees to be aware of their entitlements. The 2025 updates to the Restaurant Industry Award aim to maintain fairness and competitiveness in the industry.
Expert assistance for understanding pay rates
In the past, many businesses used manual methods to calculate pay rates and penalties. This can lead to errors and miscalculations. According to recent research, over one in five Australians were underpaid. The biggest reason for underpayment is businesses are just struggling to keep up with an increasingly complex and layered system.
That’s why we created Peninsula, to help support small businesses which form the backbone of the country. Our aim is to offer tailored solutions for your employment needs, from hiring, induction, onboarding, performance management, awards, pay rates, penalties, leave allowances, and work health and safety, to termination.
As a Peninsula client, you get access to the latest news, updates, software, tools, and resources for all things employment related. We help businesses in all business sectors, including the restaurant industry, and are very familiar with the pay rates and awards.
Contact Peninsula today to get all the latest information.
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