General Retail Industry Award [MA000004] pay rates, allowances and overtime

The General Retail Industry Award 2020 sets the pay rules for people working in the retail sector. This generally includes roles from sales assistants and cashiers through to managers and merchandisers. The award covers minimum wages, overtime and penalty rates, allowances, superannuation, and leave entitlements, among other things.

In this guide, we explain the key parts of pay under this award to help you stay compliant and treat your employees fairly.

Note: Everything in this article is up to date as of September 2025. Always check the latest version of the award for the most current details.

Retail Award pay

The pay rates in the General Retail Industry Award are different from the national minimum wage set by the Fair Work Commission (FWC). If you employ staff in retail, you must pay at least the award rates for their classification.

• Full-time employees get at least the minimum weekly rate for their level.

• Part-time employees get at least the minimum hourly rate for their classification.

• Casual employees get the same hourly rate as part-timers, plus a 25% casual loading on every hour worked.

With stronger wage theft laws now in place, getting pay right matters more than ever. Using payroll software that interprets modern awards can help you stay compliant by automatically applying the correct rates and entitlements.

Minimum pay rates

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General Retail Industry Award allowances

The General Retail Award outlines a few allowances. These are to ensure that your employees get fair compensation for extra expenses they may incur because of their job duties. Here are some of the main ones:

• Meal allowance for overtime: If you need an employee to work more than one hour of overtime without 24 hours’ notice and they can’t reasonably get home for a meal? You must pay them $23.59 or provide a meal. If the overtime goes over four hours, you must add another $21.39.

• Clothing and laundry: If you require employees to wear uniforms or other protective clothing, you must supply them or reimburse the cost. If employees have to wash these uniforms themselves, you must pay $6.25 per week for full-timers or $1.25 per shift for part-time and casual employees.

• Cold work allowance: If an employee works in refrigerated areas or stock freezers, you need to pay them an extra $0.37 per hour. If the temperature in the cold room is below 0°C, add another $0.56 per hour. This adds up to a total of $0.93 per hour.

• Motor vehicle allowance: If you need an employee to use their own car for work duties, you must pay them $0.98 per kilometre.

• First aid allowance: If you appoint an employee with a current first aid certificate to act as the first aid officer, you must pay them an allowance of $13.89 per week.

Retail Award superannuation

Most superannuation rules come from federal law. For example, the Superannuation Guarantee (Administration) Act 1992 and the National Employment Standards (NES). The General Retail Award builds on these laws. It does this by naming the default funds you can use if an employee doesn’t nominate their own fund.

Here are the main things you need to know:

• How much to pay: You must pay 12% of an employee’s ordinary time earnings (OTE) into a complying super fund. Most retailers pay super each pay run. At the latest, you must pay super quarterly to avoid penalties.

• Who gets it: All employees aged 18 and over must receive super. For employees under 18, you only need to pay super if they work more than 30 hours in a week.

• Fund choice: During the onboarding process, every new starter must get a Standard Choice Form. If they don’t choose a fund, check with the Australian Taxation Office (ATO) for their stapled fund. If there isn’t one, you can contribute to one of the award’s default funds. Some of them include REST, Sunsuper, Statewide Super, Tasplan, and MTAA Super. The fund must also be open to new members and able to accept contributions.

• Extra contributions: Employees can ask in writing to make voluntary contributions, either as salary sacrifice or from post-tax pay. Once you deduct the money, you must send it to their fund within 28 days of the end of the month.

• During leave or injury: You need to continue with super payments while your employees are on paid leave. You also continue contributions for up to 52 weeks if an employee is away because of a work-related injury or illness. This is as long as they remain employed and are receiving workers’ compensation or regular payments under statutory requirements.

General Retail Industry Award overtime

Overtime rates give retail employees extra pay when they work beyond their regular hours. The award states when these higher rates apply and how much to pay. The rules change if the employee works as a shiftworker. So, always check the employee's classification first.

Overtime applies when:

• Full-time employees

  • Work more than 38 ordinary hours a week (averaged over up to four weeks).

  • Work outside the span of ordinary hours (Mon to Fri 7:00 a.m. to 9:00 p.m., Sat 7:00 a.m. to 6:00 p.m., Sun 9:00 a.m. to 6:00 p.m).

  • Work outside the roster conditions set in clause 15.

• Part-time employees

  • Work more than their guaranteed hours under their part-time agreement.

  • Work outside the span of ordinary hours listed above.

• Casual employees

  • Work more than 38 hours a week, or averaged over a roster cycle.

  • Work outside the span of ordinary hours listed above.

• Applies to all employees (full-time, part-time, and casual)

  • Work longer than 11 hours on one day of the week.

  • Work longer than nine hours on any other day.

Note: Your employees must have at least a 12-hour break between finishing one shift and starting the next. If they come back to work without having had that full break, you need to pay them at 200% of their minimum hourly rate for all hours they work until they get the full 12-hour break.

The Award does allow flexibility by mutual agreement between you and your employee, though. If you both agree, you can reduce the break to 10 hours.

Overtime example

Jessica is a full-time retail assistant earning $26.55 per hour. One week, she works five hours of overtime: three hours on Saturday and two hours on Sunday.

• First three hours on Saturday: 3 × $26.55 × 1.5 = $119.48

• Two hours on Sunday: 2 × $26.55 × 2 = $106.20

• Total overtime pay: $119.48 + $106.20 = $225.68

Time off instead of payment for overtime

Employees and employers may agree in writing for time off instead of payment for overtime. The period of time off is equivalent to the overtime payment. The employee must take the time off within six months from when the overtime is worked. If not taken, you must pay the employee for the overtime in the next pay period.

Penalty rates

Penalty rates apply when employees work outside their ordinary hours, but the time doesn’t count as overtime. These higher rates give staff extra pay for working late nights, weekends, or other unsociable times.

Remember that the General Retail Award has separate rules for shiftworkers.

General Retail Award leave

Most leave entitlements come from the NES. But the Retail Award adds extra rules around annual leave loading, cashing out, excessive leave, and shutdowns.

Annual leave

• Entitlement: Full-time employees receive four weeks of paid annual leave each year. Part-time employees accrue the same amount on a pro rata basis. Casuals don’t get annual leave as they get casual loading instead.

• Annual leave loading: When an employee takes annual leave, you must add the higher of:

  • 17.5% on top of their minimum hourly rate, or

  • what they would have earned if they had worked their ordinary hours with weekend penalty rates.

• Advance leave: You and an employee can agree in writing for them to take annual leave before it accrues. If they leave before accruing it, you can deduct the balance from their termination pay.

• Cashing out: Employees can cash out up to two weeks of annual leave in a 12-month period. They can do this only by written agreement. They must keep at least four weeks in their balance.

• Excessive leave: More than eight weeks of annual leave counts as excessive. If you can’t agree on reducing it, you can direct leave. However, the employee must keep at least six weeks. Employees with excessive leave can also require you to grant some of it under strict rules.

• Shutdowns: You can direct employees to take annual leave during a temporary shutdown (for example, over Christmas). You must give at least 28 days’ written notice unless you and your employees agree on a shorter timeframe. If they don’t have enough leave, you can agree to them taking unpaid leave or advance leave.

• Termination: On termination, you must pay out all unused annual leave. This includes annual leave loading.

Other types of leave

• Sick leave / personal carer’s leave: Full-time employees receive 10 days of paid leave each year. Part-time employees accrue it on a pro rata basis. Casuals don’t get paid sick leave. But they can take up to 48 hours of unpaid carer’s leave per occasion to look after an immediate family or household member.

• Compassionate leave: All employees can take two days of compassionate leave per occasion. For instance, if a close family or household member dies or has a life-threatening illness or injury. Full-time and part-time staff receive this leave paid; casuals take it unpaid.

• Parental leave: Full-time, part-time, and regular casuals with at least 12 months of continuous service can take up to 12 months of unpaid parental leave. They also have the right to request another 12 months.

• Community service leave: Employees can take leave for community service activities such as jury duty or emergency services. Employers must pay full-time and part-time staff for the first 10 days of jury service. All other community service leave is unpaid.

• Family and domestic violence leave: All employees, including casuals, have a right to 10 days of paid family and domestic violence leave each year.

Public holidays

• Entitlement: Full-time and part-time employees get a paid day off if a public holiday falls on a day they normally work. Casuals only get paid if they work on the public holiday.

• Penalty rates: If employees work on a public holiday, you must pay them the penalty rates in the award. You must also pay them for a minimum of four hours, even if the shift is shorter.

• Alternative arrangement: Full-time and part-time employees can agree to a different arrangement. Instead of receiving the public holiday penalty rate, you pay them at their minimum hourly rate for the hours worked. Then, you add the same amount of paid time to their annual leave balance. They must take this time off within 28 days of the public holiday. Otherwise, you must pay it out.

• Substitution: You and an employee can agree in writing to swap a public holiday (or part-day public holiday) for another day.

• Requests to work: You can ask someone to work on a public holiday if your request is reasonable. And they can refuse if they have reasonable grounds.

• Recognised days: Public holidays include national days (such as Christmas Day, Boxing Day, Easter, and Anzac Day) as well as state and territory public holidays. If a holiday falls on a weekend, a substitute weekday usually applies.

See how Rippling helps with Retail Award leave, superannuation and more

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Understanding shiftwork under the General Retail Industry Award

The General Retail Award sets special rules for employees who work shifts that fall outside the usual spread of ordinary hours. These rules cover definitions, when shiftwork applies, and the rates that go with it.

When work counts as shiftwork

• General employees (non-baking): A shift is shiftwork if it starts at or after 6:00 p.m. on one day and before 5:00 a.m. the next day.

• Baking production employees: A shift is shiftwork if it starts at or after midnight and before 6:00 a.m.

• Exclusions: A shift counts as ordinary hours, not shiftwork, if it both starts and finishes entirely within the ordinary span of hours. These include 7:00 a.m. to 9:00 p.m. Monday–Friday, 7:00 a.m. to 6:00 p.m. Saturday, and 9:00 a.m. to 6:00 p.m. Sunday.

Important rules

• An employer must roster employees as shiftworkers for a full roster cycle before they qualify for shiftwork rates. If employees only work the occasional late night, they remain ordinary employees and don’t become shiftworkers.

• Every hour within a shift counts as continuous (the time between the start and end of the rostered shift counts as hours worked).

• Shiftworkers earn the penalty rates in clause 25. These are higher than standard evening or weekend penalties.

General shiftwork rates

Baking production employees

Public holiday shifts

Note: A shift beginning on a public holiday and ending on a non-public holiday is considered a public holiday shift.

Overtime for shiftworkers

When shiftworkers work extra hours beyond their rostered ordinary hours, they have a right to overtime, just like other employees. Shiftworkers already earn special shiftwork rates for their ordinary hours. You calculate their overtime by adding the overtime rules on top of these shiftwork rates. This way, they receive full compensation for working unsociable hours and for going beyond their normal roster.

When overtime applies

Shiftworkers earn overtime when they:

• Work beyond their rostered ordinary hours for the shift.

• Work over 38 hours in a week (averaged over a roster cycle).

• Work outside their agreed roster conditions.

How to pay shiftwork overtime

• Monday to Saturday: You pay overtime at 150% of the minimum hourly rate for the first three hours. Then 200% for any hours after that.

• Sunday: You pay overtime at 200% of the minimum hourly rate.

• Public holidays: You pay at 250% of the minimum hourly rate.

Time off instead of payment for overtime for shiftwork

• Agreement: You and your employee must agree in writing if they want to take time off instead of overtime pay. There needs to be a separate agreement for each period of overtime.

• Agreement details: The agreement must show the number of overtime hours worked and when they worked the hours. It must also confirm that the employee can choose pay instead of time off.

• Timeframe for taking time off: The employee must take the time off within six months of working the overtime. They must take this time off at a time that you both agree on.

• Payment instead of time off: If the employee asks for pay instead of time off, you must pay the overtime at the correct overtime rate.

• Record keeping: You must keep a copy of each agreement as part of the employee’s records.

Rest period after working overtime for shiftwork

• Rest period: Employees must have at least ten consecutive hours off between shifts. If overtime cuts into this rest, you must release the employee from duty until they get the full break.

• Compensation for lack of rest: If the employee comes back to work without the ten-hour rest, you must pay them at 200% of the minimum hourly rate until they stop work and take the full break.

Additional paid annual leave for certain shiftworkers

Employees who regularly work Sundays and public holidays in businesses that roster shifts 24/7 earn extra leave. They get one additional week of paid annual leave under the NES.

Payment of wages

• Pay records and payslips: You must give employees payslips that clearly show their pay and any allowances separately. This is a requirement under the Fair Work Regulations.

• How to pay: You can pay wages by cash, cheque, or EFT directly into the employee’s nominated bank account.

• Pay frequency: You can set pay to weekly or fortnightly. For employees at Retail Employee Level 4 or above, if they were already being paid monthly before 1 January 2010, you can keep that arrangement.

• Pay day: You must pay wages on a regular pay day. If you change the pay day, you must give employees at least four weeks’ written notice.

Payment on termination

• Timing: You must pay any outstanding wages within seven days of an employee leaving. This includes:

  • Wages up to their last working day.

  • Any other money owed under the Award or the NES (like annual leave balances).

• Exceptions: The Fair Work Commission can, in certain cases (like redundancy), issue an order that delays payment.

General Retail Industry Award payment management tips

Nuances of the General Retail Award

The General Retail Award has a few quirks that often trip up employers. Being aware of these details can help you budget properly, calculate pay correctly, and stay compliant.

Rippling makes Retail Award pay simple

If you’ve worked in retail for more than a week, you already know the General Retail Industry Award is no small beast. Evening penalties, weekend loadings, casual rates, allowances, super… It's a lot. And when you try to keep on top of it all with spreadsheets, you're very likely to end up making costly mistakes.

Rippling is here to make things a whole lot easier and less risky. It knows the Retail Award inside out and automatically applies the right pay rates. It doesn’t matter if someone’s rostered for a late Thursday close, a Sunday trade, or a public holiday shift. Rippling gets it right every time.

And it doesn’t stop at wages. Rippling manages all the extras too: super contributions, leave loading, and final pays when someone leaves (which happens a lot in retail).

Because Rippling is an all-in-one HR and payroll software, everything connects. It's HR, Payroll, and IT software all rolled into one innovative platform. Timesheets roll straight into payroll. Leave requests update balances instantly. Rosters sync in real time. And when Fair Work updates the Award, Rippling updates with it.

So instead of spending your nights buried in paperwork, you can just review, approve, and pay, and know you’ve got it right.

Retail Award pay FAQs

How does classification by retail employee level affect pay?

The Retail Award sets pay based on retail employee level. The various levels reflect the skills and responsibilities of each role. For example, a shop assistant may be at Level 1 or 2. A store manager, on the other hand, would be at a higher level.

You must pay at least the minimum rate for the level that matches the employee’s actual duties, not just their job title.

Does the Retail Award cover warehousing roles in retail establishments?

The award applies mainly to staff working in shops and retail stores. But it can also cover some support roles in retail establishment warehousing. If warehouse staff work in a facility attached to or operated by the retail business, they may fall under the Retail Award. Stand-alone warehouses, however, usually fall under the Storage Services and Wholesale Award (MA000084).

How does the award treat permanent employees compared to casuals?

Permanent employees (full-time and part-time) receive a steady rate of pay, and accrue annual leave and sick leave. They also access other entitlements under the Retail Award. Casuals, on the other hand, receive a loading on their hourly rate instead of those entitlements.

You need to classify staff correctly, because misclassifying a casual as permanent (or vice versa) can create backpay liabilities.