General information only – not legal advice
This guide provides general information about the General Retail Industry Award 2020 [MA000004] and related workplace laws as at the date of publication. It does not constitute legal, financial, or employment advice and should not be relied on as a substitute for advice specific to your business.
Important compliance note: Pay rates, penalties and allowance amounts under modern awards change periodically, particularly following Annual Wage Reviews. This guide includes indicative figures based on the Award as consolidated up to 1 July 2025, but employers must always check the current Fair Work pay guide or consolidated Award text before setting pay.
The General Retail Industry Award 2020 [MA000004] sets minimum pay and conditions for employees working in most retail businesses across Australia, and the current consolidated version incorporates amendments up to 1 July 2025.
This is a practical, plain-English compliance guide for Australian retail employers, including small businesses, national chains, franchises and specialty retailers.
Quick summary (for time-poor retailers)
Important: This guide assumes the General Retail Industry Award applies. Some businesses that "feel like retail" may fall under a different award depending on what is sold, how it is sold, and who employs the worker (e.g. pharmacies, vehicle sales, fast food outlets inside shops, or wholesale businesses). Always confirm award coverage before relying on these rates.
If you only skim one section, make it this one:
- The General Retail Industry Award 2020 [MA000004] sets minimum wages and conditions for many retail employees.
- Rates are reviewed annually, usually following the Fair Work Commission's Annual Wage Review.
- You must get four things right for every employee:
- Award coverage – does MA000004 actually apply?
- Classification level – Levels 1–8 (or manager stream).
- Employment type – full-time, part-time or casual.
- When they work – weekdays, weekends, evenings, public holidays, overtime.
Example adult minimum hourly rates (ordinary hours):
Indicative only: The following examples are provided as a high-level reference point only and must be verified against the current Fair Work pay guide or consolidated Award wage tables before use.
- Level 1: $26.55/hr (FT/PT), $33.19/hr (casual)
- Level 3: $27.58/hr (FT/PT), $34.48/hr (casual)
Penalty rates (ordinary hours, non-shiftwork):
- Mon–Fri after 6pm: 125% FT/PT, 150% casual
- Saturday: 125% FT/PT, 150% casual
- Sunday: 150% FT/PT, 175% casual
- Public holiday: 225% FT/PT, 250% casual
Casual penalty percentages are inclusive of casual loading.
Bottom line: Retail underpayments most commonly happen because of:
- Wrong award coverage
- Misclassification (especially supervisors/managers)
- Missing Sunday or public holiday penalties
- Incorrect part-time overtime treatment
Award coverage (start here)
Coverage checklist
Answer these questions to help determine if the General Retail Industry Award applies to your situation:
| Question | Checked? |
|---|---|
| Is the business selling goods to the public by retail? | |
| Is the employee engaged in retail work? | |
| Is the business excluded or covered by another award? | |
| Are any workers employed by contractors? | |
| Is there an enterprise agreement? | |
| Have you checked Fair Work's PACT tool? |
Which Award applies? – Quick comparison
| Business type | Likely award | Notes |
|---|---|---|
| Clothing, electronics, hardware, gift, book, specialty stores | General Retail Award | Most standard retail shops |
| Supermarkets & grocery chains | General Retail Award | With specific classifications |
| Fast food outlets | Fast Food Industry Award | Even if inside a shop |
| Pharmacies | Pharmacy Industry Award | Separate modern award |
| Vehicle dealerships | Vehicle Award | Not retail award |
| Wholesale businesses | Wholesale Award | Depends on business model |
| Contracted cleaners/security | Contractor's award | Based on employer |
Practical rule: If the business primarily sells goods direct to the public, MA000004 usually applies — but always confirm.
What the General Retail Award actually is
Think of this Award as the minimum legal rulebook you cannot go below. It sets:
- Minimum wages (hourly & weekly)
- Penalty rates & overtime
- Allowances
- Rostering rules and breaks
- Classification structures
- How Award conditions interact with the NES
You can always pay more, but generally cannot pay less.
Who the Award covers
Typical retail businesses
- Clothing, footwear & fashion stores
- Electronics & appliance retailers
- Hardware & homewares
- Department stores
- Bookshops, gift shops, specialty retail
- Newsagents and convenience retail
Typical roles
- Retail assistants
- Sales assistants
- Cashiers
- Storepersons
- Supervisors / team leaders
- Visual merchandisers
- Retail managers
2025 pay rates overview (snapshot)
These rates apply only where the General Retail Industry Award applies. All figures are minimums based on the Award as consolidated to 1 July 2025.
Adult minimum hourly rates – common retail levels
Important: If there is any inconsistency between this table and the Fair Work pay guide, the pay guide prevails.
| Level | Indicative role examples | FT/PT hourly | Casual hourly |
|---|---|---|---|
| Level 1 | Entry retail assistant | $26.55 | $33.19 |
| Level 2 | Experienced sales assistant | $27.16 | $33.95 |
| Level 3 | Advanced sales / specialist | $27.58 | $34.48 |
| Level 4 | Senior sales / team leader | $28.12 | $35.15 |
| Level 5 | Department supervisor | $29.27 | $36.59 |
| Level 6 | Senior supervisor | $29.70 | $37.13 |
Retail managers
The Award includes manager classifications, but calling someone a "manager" does not remove Award coverage.
Key points:
- Managers must still meet minimum Award rates
- A salary does not automatically absorb penalties or overtime
- Annual reconciliation is strongly recommended
Retail manager underpayment is one of the most common Fair Work audit findings.
Juniors (under 21)
Junior rates – quick compliance check
| Question | Why it matters |
|---|---|
| Is the correct junior percentage applied? | Rates vary by age |
| Is the level correct? | Juniors are % of adult level |
| Are Sunday/PH penalties applied? | Juniors still get penalties |
| Using current pay guide? | Junior tables change often |
Important: Junior rates apply by age, but penalties still apply on top of the junior base rate.
How to classify your staff (without losing your weekend)
Classification streams
| Stream | Examples | Common mistakes |
|---|---|---|
| Retail employees | Sales, cashier, stock | Everyone at Level 1 |
| Supervisors | Team leaders | Under-classifying |
| Managers | Store/area managers | Salary below Award |
| Storepersons | Warehouse/stockroom | Wrong stream |
Rule: Classify based on duties actually performed, not job title.
Level 1 misuse check
| If the employee regularly… | Level 1 is usually wrong |
|---|---|
| Works alone or opens/closes | ✔ |
| Handles cash reconciliation | ✔ |
| Directs or trains others | ✔ |
| Has specialist product knowledge | ✔ |
| Holds keys / alarm codes | ✔ |
Employment types
Full-time
- 38 hours per week
- Paid leave under NES
Part-time (high-risk area)
- Must have agreed regular pattern
- Extra hours can trigger overtime
- Minimum engagement rules apply
Consider using rostering software that supports Award-compliant shift patterns to manage part-time hours effectively.
Casual
- 25% casual loading
- Minimum engagement applies
- Casual conversion under NES
Penalty rates & overtime
Penalty rates for ordinary hours (non-shiftwork)
| When worked | FT/PT | Casual |
|---|---|---|
| Mon–Fri after 6pm | 125% | 150% |
| Saturday | 125% | 150% |
| Sunday | 150% | 175% |
| Public holiday | 225% | 250% |
Casual penalty percentages are inclusive of casual loading. Shiftworkers have different rates under clause 25.
Overtime rates
Full-time and part-time overtime:
- Mon–Sat: 150% first 3 hours, then 200%
- Sunday: 200%
- Public holiday: 250%
Casual overtime (inclusive of casual loading):
- Mon–Sat: 175% first 3 hours, then 225%
- Sunday: 225%
- Public holiday: 275%
Always check overtime trigger rules, not just percentages. Use roster warnings for potential overtime and penalty triggers to catch issues before they become costly.
Allowances (often missed)
| Allowance | Amount (1 Jul 2025) | When it applies |
|---|---|---|
| First aid | $13.89/week | Appointed first aider |
| Meal allowance | $23.59 per occasion (+$21.39 after 4 hrs) | Overtime >1 hr without 24 hrs notice, can't return home for meal (clause 19.2) |
| Vehicle allowance | $0.98/km | Approved use |
| Cold work | $0.37/hr (+$0.56/hr below 0°C) | Working in cold rooms |
| Laundry (special clothing) | $6.25/week FT; $1.25/shift PT/casual | Where special clothing is required (see clause 19.3) |
Allowance eligibility and amounts must be confirmed against the current Award and pay guide before payment.
Allowances must be itemised on payslips.
Leave entitlements
NES basics (permanent staff)
Full-time and part-time employees are entitled to leave under the National Employment Standards (NES):
- Annual leave
- Personal/carer's leave
- Compassionate leave
- Parental leave
- Family & domestic violence leave
Casuals receive no paid leave, instead receiving casual loading.
Step-by-step compliance plan (retail edition)
- Confirm the Award applies
- Classify every employee
- Set correct base rates
- Apply penalties & overtime
- Pay and itemise allowances
- Review part-time hours
- Check casual conversion
- Keep compliant records – maintain accurate time and attendance records
Retail compliance self-check
| Area | Checked? |
|---|---|
| Award coverage confirmed | |
| Classifications documented | |
| Weekend penalties correct | |
| Public holidays correct | |
| Payslips compliant |
Common mistakes in retail
- Using the wrong award
- Paying flat rates that undercut Sunday penalties
- Under-classifying supervisors
- Ignoring part-time overtime rules
- Assuming salaries absorb penalties
Final takeaways
- Confirm coverage first – not everything is "retail"
- Classification drives pay – get it right
- Sunday & public holidays matter – major risk area
- Document everything – if you can't prove it, you're exposed
Quick Compliance Cheat Sheet (2025/2026)
Award: General Retail Industry Award 2020 [MA000004]
Rates: Indicative only – based on the Award as consolidated to 1 July 2025
Always check: Fair Work pay guide or PACT tool before paying staff
General information only – not legal advice: This cheat sheet provides general information about the General Retail Industry Award 2020 [MA000004] as at the date of publication. It does not constitute legal, financial or employment advice and should not be relied on as a substitute for advice specific to your business or workforce.
This cheat sheet operates alongside the National Employment Standards (NES). Where there is any inconsistency, the NES prevails.
Important compliance note: Pay rates, penalties and allowances under modern awards change periodically, particularly following Annual Wage Reviews. All figures are indicative only and based on the Award as consolidated to 1 July 2025. Employers must always confirm current rates, classifications and Award coverage using the Fair Work pay guide or Pay and Conditions Tool (PACT) before paying employees.
Public holiday entitlements are determined by the employee's work location and applicable state or territory legislation.
1. Does the Retail Award apply?
Use this top to bottom. If you answer "YES", follow the arrow.
Is your main business activity one of the following?
- Clothing, footwear, gift, electronics, hardware or specialty retail
- A shop selling goods directly to the public
- Fast food outlet → Fast Food Award
- Pharmacy → Pharmacy Award
- Vehicle dealership → Vehicle Award
- Wholesale business → Wholesale Award
2. Adult minimum pay rates (ordinary hours – indicative)
| Level | Typical roles | FT/PT | Casual |
|---|---|---|---|
| Level 1 | Entry retail assistant | $26.55 | $33.19 |
| Level 2 | Experienced sales | $27.16 | $33.95 |
| Level 3 | Advanced/specialist | $27.58 | $34.48 |
| Level 4 | Senior sales/team leader | $28.12 | $35.15 |
Casual rates include the 25% casual loading.
3. Penalty rates (adults, ordinary hours)
| When worked | FT/PT | Casual |
|---|---|---|
| Mon–Fri after 6pm | 125% | 150% |
| Saturday | 125% | 150% |
| Sunday | 150% | 175% |
| Public holiday | 225% | 250% |
Casual penalty percentages are inclusive of casual loading. Shiftworkers have different rates under clause 25.
4. Small retail vs national chains – key differences
Small retail businesses (independent stores)
High-risk areas:
- Paying "flat weekend rates" that underpay Sundays
- Treating all staff as Level 1 forever
- Informal part-time arrangements without set patterns
- Missing public holiday penalties
Best-practice tips:
- Clearly document part-time hours in writing
- Review classifications annually
- Check Sunday and PH pay every roster
- Keep payslips simple but itemised
National chains & franchises
High-risk areas:
- Award-absorbing salaries that don't fully cover penalties
- Misclassified supervisors/managers
- Inconsistent application of part-time overtime rules
- Payroll system not updated after wage reviews
Best-practice tips:
- Run annual salary reconciliations
- Centralise classification rules
- Audit Sunday & PH payments quarterly
- Keep Award interpretation consistent across sites
- Use payroll integration with systems like Xero and MYOB to help streamline payroll processing
Payroll risk by business type
| Business type | Most common risk |
|---|---|
| Small retailer | Flat weekend rates |
| Franchise | Inconsistent classifications |
| National chain | Salary absorption failures |
Industry-specific Retail Award snippets
Fashion & Apparel Retail (clothing, footwear, accessories)
Common roles:
- Sales assistant
- Visual merchandiser
- Senior sales / key holder
- Store manager
Typical compliance traps:
- Treating visual merchandisers as Level 1 when they often meet Level 3–4
- Paying flat Sunday rates (150% FT/PT, 175% casual)
- Relying heavily on casuals without monitoring conversion obligations
- Underpaying supervisors who regularly open/close stores alone
Classification reality check:
- Basic selling & POS → Level 1–2
- Advanced product knowledge, styling advice, visual merchandising → Level 3
- Key holding, staff direction, stock control → Level 4+
Practical tip: If someone regularly opens/closes the store, handles cash reconciliation, or directs other staff, Level 1 is almost never correct.
Hardware & Home Improvement Retail
Common roles:
- Sales assistant (trade & non-trade)
- Forklift operator
- Yard/storeperson
- Department supervisor
Typical compliance traps:
- Under-classifying forklift operators and trade specialists
- Missing higher-level classifications for employees giving technical advice
- Incorrectly paying warehouse-style work as basic retail
- Assuming early starts don't attract penalties (check span of hours)
Classification reality check:
- General retail floor sales → Level 2–3
- Trade-qualified advice, specialist product knowledge → Level 3–4
- Forklift operation + stock control responsibilities → often Level 3+
- Supervising departments or yards → Level 4–5
Practical tip: If the role requires licences (e.g. forklift) or technical product advice, document why the classification is higher.
Supermarkets & Grocery Retail
Common roles:
- Checkout operator
- Night-fill / shelf stacker
- Fresh food assistant (bakery, deli, produce)
- Department manager
Typical compliance traps:
- Missing Sunday penalties for night-fill and early-morning work
- Treating department managers as Award-free salaried staff
- Incorrect junior rates for regular evening/weekend work
- Not applying penalties correctly to casual rates
Classification reality check:
- Checkout / basic shelf work → Level 1–2
- Night-fill with responsibility or machinery → Level 2–3
- Fresh food departments (skill-based work) → Level 2–3
- Department heads → Level 4–6 (depending on scope)
Practical tip: Supermarkets often have complex rosters — payroll errors usually happen at Sundays, public holidays, and overnight shifts.
5. Worked pay examples (logic-based)
Worked examples and payroll systems: Worked examples are provided for explanatory purposes only and do not replace the need to confirm Award coverage, classification, employment type, penalty and overtime triggers. Payroll and rostering systems do not remove employer responsibility for Award compliance. Consider using Award interpretation tools to help automate calculations.
Assumptions for examples:
- Adult Level 2 retail employee
- Base FT/PT rate: $27.16/hr
- Ordinary hours (no overtime trigger)
Example 1 – Weekday (Monday)
Scenario: Part-time Level 2 works 6 hours on Monday
Calculation: 6 hrs × $27.16 = $162.96
No penalties apply
Example 2 – Sunday shift (casual)
Scenario: Casual Level 2 works 5 hours on Sunday
Calculation:
- Minimum hourly rate: $27.16
- Casual Sunday penalty: 175% (inclusive of casual loading)
- $27.16 × 175% = $47.53/hr
- 5 hrs × $47.53 = $237.65
Example 3 – Public holiday (full-time)
Scenario: Full-time Level 2 works 7.6 hours on a public holiday
Calculation:
- Base rate: $27.16
- Public holiday penalty: 225%
- $27.16 × 225% = $61.11/hr
- 7.6 hrs × $61.11 = $464.44
Public holidays are based on the employee's work location, not head office. See public holidays by state and territory.
6. Juniors – fast check
- Junior rates are age-based percentages
- Percentages apply to the correct classification level
- Penalties still apply (Sunday & PH included)
Warning: Junior underpayment is common when percentages are applied to the wrong level.
Junior rates compliance checklist
| Check | Yes / No |
|---|---|
| Correct adult level identified | |
| Correct age % applied | |
| Sunday penalty applied | |
| PH penalty applied | |
| Current pay guide used |
7. Part-time trap (big one)
Part-time employees:
- Must have agreed regular hours
- Working outside those hours may trigger overtime
- Can't be treated like "cheap casuals with leave"
If hours are regularly changing, reassess whether the employee is really casual or full-time.
Part-time overtime triggers
| Scenario | Likely outcome |
|---|---|
| Works outside agreed hours | Overtime may apply |
| Extra hours become regular | Reassess contract |
| Shift exceeds daily limits | Overtime may apply |
| Hours vary week to week | Compliance risk |
8. Quick compliance checklist
| Item | Done? |
|---|---|
| Correct Award confirmed | |
| Employees correctly classified | |
| Sunday & PH penalties paid | |
| Part-time hours documented | |
| Junior rates verified | |
| Payslips itemised correctly |
Bottom line
- Retail Award compliance is mostly about weekends
- Sunday + public holiday errors = biggest backpay risk
- Small retailers trip up on informality
- Big retailers trip up on salary assumptions
- If you can't prove it, Fair Work will assume it wasn't done
This guide is intended as a practical compliance aid only. It does not replace the need to refer to the current consolidated Award, Fair Work pay guides, or to obtain professional advice where interpretation or coverage is uncertain.
For the official consolidated Award text, visit the General Retail Industry Award 2020. For pay guides, see Fair Work pay guides.