Restaurant Industry Award Pay Guide: A Complete Overview
The restaurant industry plays a crucial role in the economy, employing thousands of workers across Australia. To ensure fair compensation, employees in the hospitality sector are covered under the Restaurant Industry Award. This award outlines minimum wages, penalty rates, allowances, and other entitlements that businesses must comply with. Understanding the Restaurant Industry Award pay guide is essential for both employers and employees to maintain fair workplace practices and avoid penalties.
What is the Restaurant Industry Award?
The Restaurant Industry Award 2024 [MA000119] is a modern award under the Fair Work system that sets out pay rates, working conditions, and entitlements for employees in the restaurant industry. This award applies to businesses such as:
- Cafes
- Restaurants
- Takeaway food businesses
- Caterers
The award covers both full-time, part-time, and casual employees and ensures that workers are fairly compensated based on their roles and working hours.
Restaurant Industry Award Pay Rates
Pay rates under the Restaurant Industry Award vary depending on factors such as age, experience, employment type, and working hours (standard vs. penalty rates).
1. Minimum Wages
The minimum wage is determined based on an employee’s classification level:
| Employee Classification | Employee Stream and Grade | Minimum Weekly Rate (Full-Time Employee) | Minimum Hourly Rate |
| Introductory Level | $891.50 | $23.46 | |
| Level 1 | Food and beverage attendant grade 1Kitchen attendant grade 1 | $915.90 | $24.10 |
| Level 2 | Food and beverage attendant grade 2Cook grade 1Kitchen attendant grade 2Clerical grade 1Storeperson grade 1Door person/security officer grade 1 | $949.20 | $24.98 |
| Level 3 | Food and beverage attendant grade 3Cook grade 2Kitchen attendant grade 3Clerical grade 2Storeperson grade 2Timekeeper/security officer grade 2Handyperson | $980.40 | $25.80 |
| Level 4 | Food and beverage attendant grade 4 (tradesperson)Cook grade 3 (tradesperson)Clerical grade 3Storeperson grade 3 | $1032.30 | $27.17 |
| Level 5 | Food and beverage supervisorCook grade 4 (tradesperson)Clerical supervisor | $1097.10 | $28.87 |
| Level 6 | Cook grade 5 (tradesperson) | $1126.30 | $29.64 |
(Note: Pay rates are reviewed annually and are subject to change.)
2. Penalty Rates & Overtime
Employees who work outside standard hours are entitled to penalty rates:
- Weekends: Higher pay for Saturday and Sunday shifts
- Public Holidays: Double-time pay
- Overtime: Additional pay for working beyond standard hours
| Time of Ordinary Hours Worked | Full-Time and Part-Time Employees | Casual Employees – Introductory to Level 2 | Casual Employees – Level 3 to Level 6 |
| Monday to Friday – 6.00 am to 10.00 pm | 100% | 125% | 125% |
| Monday to Friday – 10.00 pm to midnight | 100% plus $2.72 per hour or part of an hour | 125% plus $2.72 per hour or part of an hour | 125% plus $2.72 per hour or part of an hour |
| Monday to Friday – midnight to 6.00 am | 100% plus $4.08 per hour or part of an hour | 125% plus $4.08 per hour or part of an hour | 125% plus $4.08 per hour or part of an hour |
| Saturday | 125% | 150% | 150% |
| Sunday | 150% | 150% | 175% |
| Public holiday | 225% | 250% | 250% |
3. Junior Employee Pay Rates
Employees under 21 years of age are entitled to a percentage of the minimum wage for their classification level:
| Age | Minimum % of Minimum Weekly Rate |
| Under 17 years of age | 50% |
| 17 years of age | 60% |
| 18 years of age | 70% |
| 19 years of age | 85% |
| 20 years of age | 100% |
4. Casual Loading
Casual employees receive a 25% loading on their base hourly rate to compensate for the absence of paid leave entitlements.
Allowances Under the Award
Employees may be entitled to additional allowances depending on their role:
- Meal Allowance: If working overtime without prior notice
- Tool Allowance: For chefs and cooks using their own tools
- Uniform/Clothing Allowance: If required to purchase specific work attire
Key Employee Entitlements
1. Breaks & Rest Periods
Employees are entitled to rest and meal breaks based on the length of their shifts. Typical entitlements include:
- Unpaid meal breaks after 5 hours of work
- Paid rest breaks for longer shifts
2. Annual Leave & Sick Leave
- Full-time and part-time employees receive paid annual leave and sick leave
- Casual employees do not get paid leave but receive higher hourly pay (casual loading)
Superannuation Requirements for the Restaurant Industry
Superannuation is a critical aspect of employee benefits in Australia, ensuring workers have financial security in retirement. For restaurant owners and hospitality businesses, staying compliant with evolving superannuation laws is essential to avoid penalties and support staff retention.
Superannuation Rate for 2025
As of 1 July 2025, employers in the restaurant industry must contribute 11.5% of an employee’s ordinary time earnings to their nominated superannuation fund. This is part of the Australian government's scheduled increases to the Superannuation Guarantee (SG), which is set to reach 12% by 2026.
Who is Eligible for Superannuation?
Restaurants must pay superannuation contributions for:
- Full-time, part-time, and casual employees earning more than $450 per month (the threshold was removed in 2022, meaning all eligible employees must receive super contributions regardless of earnings).
- Temporary visa holders working in Australia.
- Apprentices and trainees, provided they are classified as employees under an employment contract.
Annual Leave Entitlements in the Restaurant Industry
In the restaurant industry, full-time employees are entitled to four weeks (152 hours) of paid annual leave per year, as per the Fair Work Act 2009. Part-time employees also receive annual leave on a pro-rata basis, depending on their regular working hours. For example, a part-time worker who works 20 hours per week would accrue 80 hours (two weeks) of annual leave per year.
Annual leave accrues progressively based on hours worked and continues to accumulate while an employee is on paid leave. However, casual employees do not receive annual leave, as their pay includes a casual loading to compensate for this entitlement.
Employer Responsibilities
Employers in the restaurant industry must:
- Ensure all employees are paid correctly according to their classification level
- Provide payslips and records of payments
- Follow Fair Work Australia guidelines regarding leave, termination, and dispute resolution
- Stay updated on annual wage reviews and changes to the Restaurant Industry Award
Staying Compliant with Restaurant Award Rates
Failing to comply with the Restaurant Industry Award pay guide can lead to serious penalties, including fines and back payments to employees. Employers should:
- Regularly check for award rate updates on the Fair Work Ombudsman website
- Use an Australian POS system with payroll calculation to automate and ensure correct payments
- Seek legal or HR advice to manage employee entitlements correctly
Conclusion
The Restaurant Industry Award pay guide ensures fair and transparent wages in the hospitality sector. Both employers and employees should stay informed about pay rates, penalty rates, allowances, and leave entitlements to maintain a fair workplace. Compliance with the Restaurant Industry Award not only protects businesses from legal issues but also improves employee satisfaction and retention.
For the latest updates on Restaurant Industry Award pay rates, visit the Fair Work Ombudsman website or consult with an HR expert.