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AWARD GUIDES

Hospitality Award pay guide: rates, penalties & classifications 2026/2027

A simple, practical guide for small business owners

Updated FY2026/27 rates — effective the first full pay period on or after 1 July 2026

Steve Harris

Written by

Steve Harris

General information only – not legal advice

This guide provides general information about the Hospitality Industry (General) Award 2020 [MA000009] and related Australian workplace laws as at the date of publication.

It does not constitute legal, financial, payroll or employment advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

Pay rates, penalty rates and allowance amounts under modern awards change periodically, particularly following the Fair Work Commission’s Annual Wage Review. This guide includes indicative minimum figures based on rates effective from the first full pay period on or after 1 July 2026. Employers must always check the current Fair Work pay guide or the latest consolidated Award text before setting or paying wages.

This guide assumes the Hospitality Industry (General) Award 2020 [MA000009] applies. Many cafés, restaurants, clubs and takeaway venues are covered by different awards depending on the primary nature of the business, the employee’s duties, and who employs the worker. Always confirm award coverage (e.g. using Fair Work’s Pay and Conditions Tool (PACT)) before relying on these rates.

If you need award-specific guidance, see:

Looking for MA000009?

This is it. MA000009 is the official Fair Work code for the Hospitality Industry (General) Award 2020 (also known as HIGA) . This guide covers its pay rates, classifications, penalties and compliance for 2026/27.

View official MA000009 on Fair Work →

Award rate calculator

AWARD RATE ESTIMATOR

See how RosterElf interprets the Hospitality Award

This is an educational example showing how the Hospitality Award penalty rates work. It demonstrates how RosterElf automatically calculates correct pay rates based on classification level, employment type, and shift times.

Important: This is an estimator for demonstration purposes only. Do not use these calculations for actual payroll without verifying against the official Fair Work pay guide and consulting your Award obligations.
Base ordinary rate
Mon-Fri, standard hours
$ 0.00 /hr

Award penalty rates

Example weekly cost (38 hours)

Example total: $0.00

Example only - not for payroll use

This is a demonstration of how RosterElf calculates award-compliant rates.

The actual cost for your employees will depend on:

  • Their specific classification level and employment type
  • Actual hours worked and shift times
  • Any additional allowances, overtime, or enterprise agreement provisions
  • Current award rates (which change annually in July)

For accurate payroll calculations, always:

  1. Verify current rates with the official Fair Work pay guide
  2. Confirm your employees' correct award coverage and classification
  3. Use award interpretation software or consult a payroll professional
  4. Review your specific enterprise agreement (if applicable)

Do not rely on this example for actual wage payments.

Stop calculating penalty rates manually

Let RosterElf handle award compliance automatically

Manual award calculations are time-consuming and error-prone. One mistake can lead to underpayments, compliance issues, and Fair Work penalties. RosterElf's award interpretation engine does the work for you.

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How RosterElf automates award calculations

1
Create pay templates

Create pay templates for each classification level with award-compliant base rates and penalty multipliers. RosterElf applies the correct template to each shift automatically.

Award interpretation →
2
Define rate rules

Configure when different penalty rates apply (evenings, weekends, public holidays). The system detects which rate to use based on shift times and days.

Penalty rates guide →
3
Auto-apply to shifts

Every rostered shift calculates the correct pay rate based on the employee's classification, employment type, and shift timing. No manual work required.

Payroll integration →

Quick casual pay rates reference 2026/27

Most hospitality businesses employ casual workers. Here are the casual rates you need to know for ordinary weekday hours (Mon–Fri, standard times). These figures are generated from the current Fair Work pay guide:

FY2026/27 rates are in effect

All modern award rates rose 4.75% from the first full pay period on or after 1 July 2026, and the national minimum wage is now $26.44/hr. The rates below and in the calculator reflect the current Fair Work pay guide (published 24 June 2026).

Casual hourly rates 2026/27 (ordinary weekday hours)

Level Example roles Casual hourly rate
IntroductoryNew starters, basic tasks under supervision$32.18
Level 1Food & Beverage Attendant Grade 1, Guest Service Grade 1, Kitchen Attendant Grade 1$33.05
Level 2Clerical Grade 1, Cook Grade 1, Door/Security Grade 1, F&B Attendant Grade 2, Front Office Grade 1, Guest Service Grade 2, Kitchen Attendant Grade 2, Leisure Attendant Grade 1, Gardener Grade 1, Storeperson Grade 1$33.85
Level 3Clerical Grade 2, Cook Grade 2, F&B Attendant Grade 3, Fork-lift Driver, Front Office Grade 2, Guest Service Grade 3, Handyperson, Kitchen Attendant Grade 3, Leisure Attendant Grade 2, Gardener Grade 2, Storeperson Grade 2, Timekeeper/Security Grade 2$34.96
Level 4Clerical Grade 3, Cook (tradesperson) Grade 3, F&B Attendant (tradesperson) Grade 4, Front Office Grade 3, Guest Service Grade 4, Leisure Attendant Grade 3, Gardener (tradesperson) Grade 3, Storeperson Grade 3$36.81
Level 5Clerical Supervisor, Cook (tradesperson) Grade 4, Food & Beverage Supervisor, Front Office Supervisor, Guest Service Supervisor, Gardener (tradesperson) Grade 4$39.13
Level 6Cook (tradesperson) Grade 5$40.16
Managerial staff – hotelHotel managerial staff covered by the Award$40.24

Weekend & public holiday rates are higher

On top of the ordinary rates above, the Award adds penalties for unsociable hours — Saturday +25%, Sunday +50% and public holidays +125% for full-time and part-time staff (casual rates are higher again). Use the calculator above to see exact rates for your level and employment type.

Quick summary for time-poor owners

Important: This guide assumes the Hospitality Award applies. If you’re a café/restaurant, club, or fast-food style business, confirm award coverage first (see the disclaimer above).

If you only skim one section, make it this one:

  • The Hospitality Industry (General) Award 2020 [MA000009] (commonly known as “HIGA”) sets minimum pay and conditions for many hospitality workers in Australia.
  • These minimums are reviewed each July following the Fair Work Commission’s Annual Wage Review. The FY2026/27 pay guide took effect from the first full pay period on or after 1 July 2026, lifting all rates by 4.75%.
  • You must get four things right for every staff member:
    • Award coverage – does the Hospitality Award actually apply?
    • Classification level – Introductory, Level 1–6, casino streams, managerial staff – hotel, etc.
    • Employment type – full-time, part-time, or casual.
    • When they work – weekday, nights, weekends, public holidays, overtime.
  • Example of 2026/27 adult minimum pay (non-casino):
    • Level 1 Food & Beverage Attendant / Guest Service / Kitchen Attendant: full-time/part-time $26.44/hr, casual $33.05/hr (includes 25% casual loading).
    • Level 3 Cook / Food & Beverage Attendant / Front Office: full-time/part-time $27.97/hr, casual $34.96/hr.
  • Junior rates are lower but still fixed by the Award — e.g. a 17-year-old full-time Level 1 Food & Beverage Attendant must get $15.86/hr ($19.83 as a casual).
  • On top of base rates you may also pay penalty rates (weekends, late nights, early mornings, public holidays), overtime, and allowances (split shift, uniform, laundry, tools, meals, travel).
  • Casuals with regular, ongoing hours can request conversion to permanent under updated casual conversion rules (Hospitality Award clause 11.6 plus the Fair Work Act changes).

Bottom line: if you guess pay rates or just “pay what every other café pays”, there’s a real risk of underpayment — it’s worth taking a moment to check your underpayment risk. The good news is that with a basic process (and preferably some award-aware rostering software with award interpretation), you can get this under control.

What the hospitality award actually is

Think of the Hospitality Award (HIGA) as a standard contract template that you can’t go below.

It sets:

  • Minimum hourly rates for different jobs and ages
  • Extra pay for weekends, nights, public holidays and overtime
  • Allowances (broken shift, laundry, tools, meals etc.)
  • Rules about casuals, rostering, breaks and classification
  • Links into the National Employment Standards (NES) for leave and other basic rights

You can always pay more or offer better conditions, but you can’t legally pay less than the Award.

The Hospitality Award is reviewed continually and updated roughly every July after the Fair Work Commission’s Annual Wage Review. That’s when base rates typically go up.

Your job as an employer is to:

  1. Work out whether your staff are covered by this Award.
  2. Classify them correctly.
  3. Pay at least the Award minimum, including penalties and allowances.
  4. Update rates when the pay guide changes.

Award coverage reminder: This guide only applies if the Hospitality Award covers your business (see the disclaimer above).

Who the hospitality award covers (and who it doesn't)

In simple terms, the Hospitality Award covers many — but not all — hospitality businesses. It commonly applies to:

  • Hotels, motels and serviced apartments
  • Pubs, bars, taverns and wine bars
  • Function centres and catering operations
  • Some hospitality venues with gaming or accommodation components

Important: Many cafés and restaurants are instead covered by the Restaurant Industry Award or the Fast Food Industry Award. Award coverage depends on the primary nature of the business and the employee’s duties, not just what the venue looks like.

Typical roles under the Award include:

  • Front of house: Food & Beverage Attendants, bar staff, baristas, front office/reception, guest services, door staff and security officers employed directly by the hospitality business
  • Back of house: cooks, apprentice cooks, chefs, kitchen hands/attendants, storepersons, gardeners/maintenance
  • Casino / gaming: table gaming employees, electronic gaming employees, surveillance operators, casino equipment technicians
  • Support roles: clerical/admin, reservations, some supervisors and managerial staff – hotel

Who might not be covered?

You may need a different award (or an agreement) if:

  • The person is a senior executive or very senior manager whose duties are clearly above Award level.
  • The business is more retail than hospitality (e.g. supermarket with a café corner — they might fall under the Retail Award).

When in doubt, check:

  • The Hospitality Award on the Fair Work website; and
  • Fair Work’s Pay and Conditions Tool (PACT) for award coverage; or
  • An employment adviser or lawyer for a formal opinion.

Important: Many cafés and restaurants are covered by the Restaurant Industry Award, and many fast-food style operations are covered by the Fast Food Industry Award. If you’re unsure, confirm coverage before applying Hospitality classifications or rates.

Hospitality award vs restaurant award

Side-by-side comparison for small business owners.

Topic Hospitality Award (MA000009) Restaurant Award (MA000119)
Primary business typeHospitality businesses where accommodation, alcohol service, gaming or venue operations are centralBusinesses that primarily prepare and serve food
Typical venuesHotels, motels, pubs, bars, taverns, wine bars, function centres, catering linked to venuesRestaurants, cafés, bistros, casual dining venues, many independent food venues
Core focus testIs the business mainly providing hospitality services beyond food?Is the business mainly a food service operation?
Common mistakeAssuming cafés/restaurants are hospitalityUsing hospitality rates "because everyone else does"
Classification structureIntroductory + Levels 1–6 across multiple streams (F&B, Guest Service, Kitchen, Gaming, Clerical, etc.)Different grade structure for Food & Beverage, Cooks, Chefs — levels don't match Hospitality Award
Reuse classifications between awards?NoNo
Base ratesGenerally similar headline figures, but vary by levelOften slightly different base rates by grade
Casual loading25%25%
Penalty ratesSet by day/time; generally broader ordinary spansOften tighter spans and higher or earlier-trigger penalties
Sunday workPenalties apply, structure depends on employment typePenalties apply, different percentages and interactions
Public holidaysPenalties applyPenalties apply (often a key underpayment area)
Overtime triggersBased on daily/weekly limits and span of hoursOften triggered earlier, especially for part-time employees
Part-time rulesRegular pattern required; more flexibility in practiceStricter written agreements on hours and patterns
Split/broken shiftsAllowed, allowance appliesCommon, rules and triggers differ
AllowancesUniform, laundry, meal, split shift, travel, etc.Similar allowance types, different triggers and amounts
Casual conversionAward clause + Fair Work Act employee choice pathwayAward clause + Fair Work Act employee choice pathway
Risk if wrong award usedUnderpayment of restaurant staffUnderpayment of café/restaurant staff (very common)

Key takeaway: You cannot safely apply Hospitality Award rates, penalties or classifications to restaurant or café staff without confirming coverage. When in doubt, confirm coverage using Fair Work’s Pay and Conditions Tool (PACT) or seek professional advice.

Looking for the correct pay rates and rules for cafés or restaurants? See the full Restaurant Industry Award pay rates guide.

Not sure which award applies? Start here.

Use this top to bottom. If you answer "YES", follow the arrow.

Step 1

What is your business primarily selling?

Is your main business activity one of the following?

  • Accommodation (hotel, motel, serviced apartments)
  • Alcohol-focused venue (pub, bar, tavern, wine bar)
  • Gaming venue (hotel or club with gaming)
  • Venue-based catering or function centre
Step 2A

Hospitality-focused businesses

Does your business operate primarily as a hotel, pub, bar or venue where food supports the hospitality experience rather than being the main product?

→ Hospitality Industry (General) Award likely applies
Step 2B

Food-focused businesses

Is your business mainly preparing and serving food to customers?

  • Café
  • Restaurant
  • Bistro
  • Casual dining venue
  • Independent takeaway (not a fast food chain)
Step 3

Mixed operations (the grey area)

Ask these tie-breaker questions:

  • If you removed alcohol sales, would the business still operate normally?
  • Do most staff spend their time preparing or serving food?
  • Do customers mainly come to eat, not drink or stay overnight?
Mostly YES → Restaurant Award likely applies Mostly NO → Hospitality Award may apply
Step 4

Final check (strongly recommended)

Before setting pay rates:

  • Check Fair Work’s Pay and Conditions Tool (PACT)
  • Search the award coverage clause for your business type
  • Get advice if the answer isn’t obvious

Never decide the award based on “what other cafés pay” or “what payroll software defaulted to.”

If you confirm that the Hospitality Award does not apply, use the relevant guide: Restaurant & café businesses, Clubs & member venues, or Fast-food operations.

Reminder: Always check the latest Fair Work pay guide before setting rates — award rates and allowances change annually.

2026/27 pay rates overview: what you must pay

This section gives you a practical snapshot of the current FY2026/27 rates so you can sanity-check your payroll. All figures are minimums from the Fair Work pay guide effective from the first full pay period on or after 1 July 2026, and are generated from the same data that powers the calculator above.

The rates below assume correct award coverage and classification.

What changed from 2025/26

The FY2026/27 Annual Wage Review lifted all modern award minimum rates by 4.75%, and the national minimum wage rose to $26.44/hr. For the Hospitality Award, full-time/part-time ordinary rates moved like this:

  • Level 1: $25.24 → $26.44
  • Level 3: $26.70 → $27.97
  • Level 6: $30.68 → $32.13

Casual rates (base + 25%) and penalty rates rose proportionally. Always confirm against the current pay guide.

Warning: Don’t copy-paste these into payroll and forget about them. Always double-check the latest Fair Work pay guide before paying staff — rates change annually.

Adult – full-time & part-time (non-casino)

For adult employees (usually 20+), ordinary weekday hours:

Level Example roles Weekly pay Hourly rate
IntroductoryNew starters, basic tasks under supervision$978.10$25.74
Level 1Food & Beverage Attendant Grade 1, Guest Service Grade 1, Kitchen Attendant Grade 1$1,004.90$26.44
Level 2Clerical Grade 1, Cook Grade 1, Door/Security Grade 1, F&B Attendant Grade 2, Front Office Grade 1, Guest Service Grade 2, Kitchen Attendant Grade 2, Leisure Attendant Grade 1, Gardener Grade 1, Storeperson Grade 1$1,029.10$27.08
Level 3Clerical Grade 2, Cook Grade 2, F&B Attendant Grade 3, Fork-lift Driver, Front Office Grade 2, Guest Service Grade 3, Handyperson, Kitchen Attendant Grade 3, Leisure Attendant Grade 2, Gardener Grade 2, Storeperson Grade 2, Timekeeper/Security Grade 2$1,062.90$27.97
Level 4Clerical Grade 3, Cook (tradesperson) Grade 3, F&B Attendant (tradesperson) Grade 4, Front Office Grade 3, Guest Service Grade 4, Leisure Attendant Grade 3, Gardener (tradesperson) Grade 3, Storeperson Grade 3$1,119.10$29.45
Level 5Clerical Supervisor, Cook (tradesperson) Grade 4, Food & Beverage Supervisor, Front Office Supervisor, Guest Service Supervisor, Gardener (tradesperson) Grade 4$1,189.40$31.30
Level 6Cook (tradesperson) Grade 5$1,221.10$32.13
Managerial staff – hotelHotel managerial staff covered by the Award$1,223.39$32.19

Managerial staff – hotel is set as a minimum weekly/annual salary by the Award (hourly equivalent shown). Casino classifications (electronic gaming, table gaming, surveillance, gaming finance, casino equipment technicians, etc.) have separate adult rates — check the Fair Work pay guide.

Adult – casual (non-casino)

Casuals receive the same base rate plus a 25% casual loading to make up for not getting paid leave. Adult casual rates for ordinary weekday hours:

Level Example roles Casual hourly rate
IntroductoryNew starters, basic tasks under supervision$32.18
Level 1Food & Beverage Attendant Grade 1, Guest Service Grade 1, Kitchen Attendant Grade 1$33.05
Level 2Clerical Grade 1, Cook Grade 1, Door/Security Grade 1, F&B Attendant Grade 2, Front Office Grade 1, Guest Service Grade 2, Kitchen Attendant Grade 2, Leisure Attendant Grade 1, Gardener Grade 1, Storeperson Grade 1$33.85
Level 3Clerical Grade 2, Cook Grade 2, F&B Attendant Grade 3, Fork-lift Driver, Front Office Grade 2, Guest Service Grade 3, Handyperson, Kitchen Attendant Grade 3, Leisure Attendant Grade 2, Gardener Grade 2, Storeperson Grade 2, Timekeeper/Security Grade 2$34.96
Level 4Clerical Grade 3, Cook (tradesperson) Grade 3, F&B Attendant (tradesperson) Grade 4, Front Office Grade 3, Guest Service Grade 4, Leisure Attendant Grade 3, Gardener (tradesperson) Grade 3, Storeperson Grade 3$36.81
Level 5Clerical Supervisor, Cook (tradesperson) Grade 4, Food & Beverage Supervisor, Front Office Supervisor, Guest Service Supervisor, Gardener (tradesperson) Grade 4$39.13
Level 6Cook (tradesperson) Grade 5$40.16
Managerial staff – hotelHotel managerial staff covered by the Award$40.24

Casual rates shown are the ordinary weekday rate (base + 25% loading). Penalties for weekends, evenings and public holidays apply on top — use the calculator above.

Juniors (under 20)

Junior rates are a percentage of the relevant adult rate. They depend on both:

  1. Age (16, 17, 18, 19)
  2. Classification (Level 1, Level 2, etc., and sometimes “office only” roles)

The hospitality junior scale is roughly: 16 and under 50%, 17 → 60%, 18 → 70%, 19 → 85%, 20 → 100% (adult). A couple of FY2026/27 examples:

  • 17-year-old Level 1 Food & Beverage Attendant: full-time/part-time $15.86/hr, casual $19.83/hr
  • 18-year-old Level 2 Cook Grade 1 (FT/PT): $18.96/hr
  • 19-year-old Level 1 Food & Beverage Attendant (FT/PT): $22.47/hr

Because the junior tables are long and very specific, the safest approach is to download the latest pay guide for the Hospitality Award from Fair Work, find the Junior – Full-time & Part-time and Junior – Casual sections, then match age + classification + employment type.

Apprentices

Apprentice cooks have separate rates and rules (including special provisions when they reach certain years or proficiency levels). The FY2026/27 full-time apprentice base rates are:

Stage Weekly pay Hourly rate
Apprentice 1st year / Stage 1$615.51$16.20
Apprentice 2nd year / Stage 2$727.42$19.14
Apprentice 3rd year / Stage 3$895.28$23.56
Apprentice 4th year / Stage 4$1,063.15$27.98

Rates shown are full-time ordinary rates. Penalties, allowances and adult apprentice variations apply — always confirm against the Fair Work pay guide.

How to classify your staff (without going insane)

Getting the classification wrong is one of the most common causes of underpayment. When the Award talks about “Level 1, Level 2, Level 3” etc., it’s not just jargon — it’s how Fair Work expects you to decide who gets which rate.

Step 1: work out the job stream

Most employees will fall into one of these broad groups:

  • Food & Beverage (baristas, bar staff, waiters, bartenders)
  • Guest Service / Front Office (hotel reception, concierge, guest service)
  • Kitchen (kitchen attendants, cooks, apprentice cooks, chefs)
  • Gaming / Security (casino staff, door staff, security officers)
  • Leisure / Maintenance / Gardening
  • Clerical / Office / Admin
  • Storeperson / Warehouse

Step 2: match duties to the level

Within each stream, the Award describes what each level typically does — how much experience they have, whether they supervise others, whether they use trade qualifications (e.g. a qualified cook), and how complex their duties are. Roughly:

  • Introductory – brand new starters doing basic tasks under close supervision, usually for a limited time.
  • Level 1 – basic tasks with some routine and direction.
  • Level 2–3 – more skilled work, may operate equipment, handle money, or have more responsibility.
  • Level 4–5 – trade-qualified staff and supervisors.
  • Level 6 – highly skilled or senior trade roles.
  • Managerial staff – hotel – specific managerial roles still covered by the Award.

Step 3: write the classification down

For each employee, you should have something like:

“Employed under the Hospitality Industry (General) Award 2020 [MA000009] as a Level 2 Food & Beverage Attendant, Grade 2 – casual.”

This classification should appear in the employment contract / letter of engagement, your HR or payroll system, and any roster or award interpretation software you use. If you’re really unsure, read the classification definitions in the Award and, if needed, get an employment adviser to confirm you’ve picked the right level. You can also confirm the right classification level with our free checker.

What do bartenders, chefs and kitchen staff get paid?

Here’s how common hospitality roles map to award classifications and pay rates. These are the rates you need to know for your most common staff positions.

Bartender pay rates

Most bartenders start at Level 1 (basic bar service) or Level 2 (experienced, cocktail-focused):

  • Level 1 bartender casual: $33.05/hr ordinary hours
  • Level 2 bartender casual: $33.85/hr ordinary hours
  • Weekends: penalties apply on top (Saturday +25%, Sunday +50% for full-time/part-time; casual loadings stack higher) — use the calculator above for exact figures

Senior or head bartenders may be Level 3 ($34.96/hr casual) if they supervise staff or have specialised bar management duties.

Chef and cook pay rates

Cooks and chefs are classified by skill level and trade qualifications:

  • Level 2: Cook Grade 1 (basic cooking) — $33.85/hr casual
  • Level 3: Cook Grade 2 (skilled cook) — $34.96/hr casual
  • Level 4: Cook tradesperson Grade 3 — $36.81/hr casual
  • Level 5: Cook tradesperson Grade 4 (senior chef) — $39.13/hr casual
  • Level 6: Cook tradesperson Grade 5 (head chef) — $40.16/hr casual

Trade-qualified chefs with a Certificate III or IV in Commercial Cookery typically start at Level 4 or above, depending on their responsibilities and experience.

Kitchen hand and kitchen attendant rates

Kitchen hands typically start at Level 1:

  • Level 1 kitchen attendant casual: $33.05/hr ordinary hours
  • Level 2 kitchen attendant casual: $33.85/hr (with experience or additional duties)
  • Weekend rates: apply penalty multipliers (Saturday +25%, Sunday +50%)

Waiter and food & beverage attendant rates

Wait staff classifications depend on experience and duties — our waiter job description template lists the full duties at each level:

  • Level 1: Food & beverage attendant (basic table service) — $33.05/hr casual
  • Level 2: Experienced wait staff, wine service — $33.85/hr casual
  • Level 3: Senior wait staff with supervisory duties — $34.96/hr casual

These are minimum rates for ordinary hours. Penalty rates apply for evenings, weekends, and public holidays. Use the pay calculator above to see total cost including penalties for your specific shifts.

Full-time vs part-time vs casual in practice

The Award itself doesn’t change the basic national definitions, but it works together with them.

Full-time

  • Usually around 38 hours per week, ongoing
  • Guaranteed regular hours
  • Entitled to paid annual leave and paid personal (sick & carer’s) leave, plus other NES leave

Part-time

  • Less than 38 hours per week, but with a regular pattern of hours
  • Also entitled to paid leave, but on a pro-rata basis
    • Example: 20 hours/week → 4 weeks’ annual leave = 80 hours per year

Under the Award, part-time hours and patterns should be agreed in writing so there’s clarity about what counts as ordinary hours vs overtime.

Casual

  • No firm advance commitment to ongoing work with an agreed pattern of work
  • Paid a 25% casual loading on top of the base rate instead of paid leave
  • Can be cancelled or changed more easily (subject to the Award and any applicable minimum engagement rules)

The big trap: running “casuals” on a permanent, regular set roster for months or years. That’s where casual conversion comes in.

Casual conversion: when a casual stops being very casual

Recent changes to the law mean casual conversion now mainly operates through the employee choice pathway, rather than mandatory employer offers in all cases. The Hospitality Award (clause 11.6) still applies alongside the Fair Work Act.

In simple terms, a casual may be able to request conversion if:

  • They have been employed for at least 6 months (or 12 months for small businesses); and
  • Their work pattern has become regular and ongoing, and could continue as a part-time or full-time arrangement.

If they convert:

  • They lose the 25% casual loading
  • They gain paid leave entitlements
  • You must treat them as permanent going forward (with the usual rules around hours, overtime, etc.)

Transitional rules apply depending on when the casual was hired and the size of the business. Casuals employed before 26 August 2024 may still fall under older conversion pathways during the transition period. Because the rules depend on hire date and business size, get advice before refusing a conversion request. See our casual conversion guide for the full process.

Practical tip: Once a quarter, run a quick report on your casuals — who has been working regular hours for 6–12+ months, and do their rosters look like permanent patterns? If yes, get advice on casual conversion so you’re not caught out later.

Penalty rates, overtime & loaded rates

This is where many small hospitality businesses lose the plot — and where underpayments often happen. The Award sets different pay for weekday ordinary hours, evenings/nights, Saturdays, Sundays, public holidays, and overtime (hours beyond the ordinary roster or outside the span of hours). The idea is simple: the less popular the time, the higher the pay.

Why you probably shouldn't try to memorise penalty percentages

The actual penalty percentages vary depending on whether the employee is full-time/part-time or casual, which day of the week, what time of day, and whether the hours are ordinary hours or overtime. Because these details are fiddly and change over time, the safest options are:

Overtime in real life

Overtime can be triggered when an employee works more than their agreed ordinary hours (part-timers), exceeds 38 hours per week or daily limits (full-timers), or is required to work outside the span of ordinary hours. The Award sets overtime penalties (e.g. time and a half, double time) that must be applied on top of base rates. For a complete breakdown of break and overtime rules, see our Fair Work breaks and overtime guide. If you roster people long hours or do a lot of last-minute changes, check overtime rules, not just base rates.

Stop calculating penalty rates by hand

RosterElf's award interpretation engine applies Hospitality Award penalty, overtime and public-holiday rates automatically from each shift's times — no manual lookups, fewer underpayment risks.

See award interpretation

Allowances: the little extras everyone forgets

Beyond hourly pay and penalties, the Award also has a shopping list of allowances — extra payments that kick in for specific situations. Common hospitality allowances include:

  • Split shift / broken shift allowance – when an employee’s working day is split with a long gap in the middle.
  • Uniform or special clothing allowance – if you require particular clothing and don’t supply it.
  • Laundry allowance – if staff have to wash special uniforms themselves.
  • Meal allowance – if staff work beyond a certain number of hours without a meal break, or stay back for overtime under specific conditions.
  • Tool allowance – for trades roles that must supply their own tools.
  • Travel or vehicle allowances – for using their own vehicle or travelling between sites.

The exact amount in dollars is updated with each pay guide and is listed under “Allowances” in the Fair Work pay guide.

Practical tip: Look at your roster patterns. If you use split shifts, require specific uniforms, or often have staff stay back late, there’s a good chance an allowance should apply somewhere.

Leave entitlements under the award & NES

The Award sits on top of the National Employment Standards (NES), which set minimum leave entitlements for permanent employees.

Full-time & part-time

They are entitled to, among other things:

  • Paid annual leave – generally 4 weeks per year, based on their ordinary hours.
    • Example: 20 hours per week → 4 weeks’ leave = 80 hours per year.
  • Paid personal/carer’s leave (sick leave) – also based on their ordinary hours.
  • Compassionate leave, parental leave, family and domestic violence leave, and other NES entitlements.

Casuals

  • No paid annual leave or paid personal/carer’s leave.
  • Instead, they receive the 25% casual loading on their hourly rate.

The Award may add extra detail (e.g. how leave interacts with public holidays, additional annual leave in certain shift patterns), so read the relevant clauses or seek advice for complex situations.

Step-by-step compliance plan

Here’s a simple process you can actually follow in your business.

Step 1: confirm the Award applies

  • Check that your venue and staff fit within the Hospitality Industry (General) Award 2020 [MA000009] coverage.
  • If you’re not sure, get advice — being on the wrong award can make all your calculations wrong.

Step 2: download the latest pay guide

  • Grab the official Hospitality Award pay guide from Fair Work. From 1 July 2026, download the new 2026/27 guide reflecting the 4.75% increase.
  • Save it somewhere obvious — this is your “price list”.

Step 3: classify every employee

For each staff member, write down:

  1. Award: Hospitality Industry (General) Award 2020 [MA000009]
  2. Stream (F&B, kitchen, guest service, clerical, gaming, etc.)
  3. Level (Introductory, Level 1–6, or specific casino classification)
  4. Employment type (full-time, part-time or casual)
  5. Age (for juniors)

Make sure this matches their actual duties, not just their job title.

Step 4: set correct base rates in payroll

  • Use the pay guide to enter the correct base rate for each classification and age.
  • Double-check adult rates like: Level 1 adult FT/PT $26.44, Level 1 adult casual $33.05.
  • And any juniors, e.g. a 17-year-old Level 1 casual at $19.83.

Step 5: make sure penalties & overtime are calculated

You have two realistic choices:

  • Use Fair Work’s Pay and Conditions Tool each pay run (time-consuming, but possible for very small teams); or
  • Use award-interpreting rostering/payroll software with payroll integration that understands the Hospitality Award and automatically calculates penalties and overtime based on the roster and timesheets.

Step 6: add allowances where necessary

  • Review the Allowances section of the pay guide.
  • Decide when each allowance applies in your business (split shifts, uniforms, meals, etc.).
  • Update payroll so that allowances are easy to add (or automated if using software).

Step 7: review casuals for conversion

  • Once or twice a year, check which casuals have regular patterns of work over 6–12 months.
  • If they look “permanent”, look into casual conversion obligations and options.

Step 8: keep records & payslips tidy

Good records are your best defence if there’s ever a dispute or audit.

Common mistakes we see all the time

Here are the traps that trip up a lot of small venues.

1. "Everyone gets the same rate"

Example: every casual gets $30 per hour, regardless of age, classification or weekend work.

  • That might underpay some staff (e.g. Level 4 or Level 5 adults), and overpay others.
  • It almost certainly ignores Sunday/public holiday penalties and allowances.

2. Long-term "casuals" who are really permanent

  • Staff on fixed rosters for years, with regular hours, who still get a casual loading and no paid leave.
  • This creates risk around backpay and casual conversion disputes.

3. Ignoring allowances and broken shifts

  • Using lots of split shifts in a day but never paying a split shift allowance.
  • Making staff provide and launder uniforms without uniform/laundry allowances.

4. Not updating rates each July

  • Still paying last year’s rates because “that’s what we’ve always paid”.
  • Fair Work and many advisors recommend you download the new pay guide every July and compare it to your payroll.

5. Bad or missing records

  • No written classification.
  • No record of agreed part-time hours.
  • Rosters and timesheets stored in random places or never kept at all.

If Fair Work investigates, poor records make it hard to prove you’ve done the right thing.

Final takeaways

Understanding and applying the Hospitality Award correctly isn’t optional — it’s a legal requirement. But it doesn’t have to be overwhelming. Here’s what to remember:

  • Get the basics right: Know which award applies, classify your staff correctly, and use the right base rates.
  • Don’t ignore penalties and allowances: These are where most underpayments happen. You can estimate weekend and overtime costs before you publish a roster, or use software to help.
  • Review your casuals: If they’ve been working regular hours for months, consider casual conversion obligations.
  • Update every July: Download the new pay guide and compare it to your payroll.
  • Keep good records: Written classifications, agreed hours, rosters, timesheets and payslips are your best protection.
  • Use the right guide: If your business is a café, restaurant, club or fast-food venue, make sure you’re using the correct award guide — Hospitality rates cannot be safely applied across awards.

For official guidance, visit the Fair Work Ombudsman website.

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FAQ

Hospitality Award FAQ

  • The Hospitality Industry (General) Award 2020 (MA000009), commonly known as HIGA, covers employees in hotels, motels, pubs, taverns, bars, accommodation venues, resorts, casinos, and catering businesses where hospitality services are the main focus. It applies to bar staff, waiters, kitchen hands, cooks, housekeepers, front desk staff, and managers. If you run a restaurant with table service, you might be covered by the Restaurant Award instead. Use Fair Work’s Pay and Conditions Tool (PACT) to confirm.

  • Generally no. Restaurants and cafes where table service is a key feature are typically covered by the Restaurant Industry Award 2020, not the Hospitality Award. However, if your café operates more like a pub or bar (counter service, alcohol focus), you might fall under Hospitality. The distinction can be complex — always check using Fair Work’s PACT tool to confirm the correct award. Many businesses get this wrong and end up applying the wrong penalty rates.

  • The 2025/26 rates took effect from the first full pay period on or after 1 July 2025, following the Annual Wage Review. All employers must apply the updated rates from this date. Always check the Fair Work pay guide for the latest rates.

  • The 2026/27 rates take effect from the first full pay period on or after 1 July 2026. The Fair Work Commission announced a 4.75% increase to all modern award minimum rates in its June 2026 Annual Wage Review decision. The national minimum wage rises to $26.44/hr. Update your payroll system from 1 July 2026 once the official FWC Hospitality Award pay guide is published. Always check Fair Work pay guides before setting wages.

  • The Award has 8 classification levels. Level 1: basic duties (cleaning, dishwashing, kitchen hand, basic service). Level 2: general duties with some experience (bar work, wait staff, basic cooking). Level 3: skilled duties (trade-qualified cooks, experienced bartenders). Levels 4–8: supervisory and management roles. Most hospitality workers are Level 1 or 2. Correct classification is critical — misclassification is a major underpayment risk, so it pays to confirm the right classification level before you set wages.

  • Casual employees must receive a minimum of 3 hours pay per shift, even if they work less (except in limited circumstances). Part-time employees have their guaranteed minimum hours specified in writing in their employment contract. This 3-hour minimum ensures workers are fairly compensated for travelling to work. Rostering casual shifts under 3 hours without paying for the full 3 hours is a common compliance issue in hospitality.

  • No. The Hospitality Industry General Award (MA000009) is a national modern award that applies the same minimum pay rates across all Australian states and territories including Queensland (QLD), New South Wales (NSW), Victoria (VIC), Western Australia (WA), and South Australia (SA). However, some states have additional public holidays which affect penalty rate payments. Always check your state’s public holiday calendar when calculating public holiday rates. State-based enterprise agreements may also set higher rates than the Award minimum.