Restaurant Industry Award [MA000119]: Pay rates, allowances, and overtime

Author

The Rippling Team

Published

August 18, 2024

Updated

October 8, 2025

Read time

14 MIN

In this article

01. Restaurant Industry Award pay guide
02. Restaurant Award leave
03. 8 tips for Restaurant Industry Award payment management
04. Nuances of the Restaurant Award
05. Get Restaurant Industry Award pay right with Rippling

The Restaurant Industry Award sets the rules for pay rates and conditions for people working in various roles in restaurants and cafés across Australia. It covers things like wages, penalties, overtime, allowances, and leave.

It's complex.

To make things simpler, we put together this easy-to-follow Restaurant Industry Award pay guide. You'll find all the important details you need to pay your team correctly and stay compliant.

Restaurant Industry Award pay guide

Getting pay right is essential, especially now that wage theft laws carry serious penalties. The Restaurant Award provides minimum pay rates for your restaurant and café staff. And they’re different from the national minimum wage. They change depending on the role, level, and experience of the person you're paying.

You pay full-time employees the weekly rate and part-time staff the hourly rate. Casuals also get the hourly rate, plus an extra 25% on top.

Using payroll software that keeps up with the latest award rates and updates automatically is the best way to avoid costly mistakes.

Minimum pay rates

Category	Description	Rates/details	Example
Adult employees	Employees aged 21 and over	Introductory Level: $922.70/week ($24.28/hour) Level 1: $948.00/week ($24.95/hour) Level 2: $982.40/week ($25.85/hour) Level 3: $1,014.70/week ($26.70/hour) Level 4: $1,068.40/week ($28.12/hour Level 5: $1,135.50/week ($29.88/hour) Level 6: $1,165.70/week ($30.68/hour)	A 27-year-old cook at Level 3 earns $1,014.70 a week, or $26.70 an hour.
Junior employees	Employees aged under 21	Under 17: 50% of adult employee rate 17 years: 60% of adult employee rate 18 years: 70% of adult employee rate 19 years: 85% of adult employee rate 20 years: 100% of adult employee rate	A 19-year-old food and beverage attendant at Level 1 earns 85% of the adult rate. So, that’s $805.80 a week or $21.20 an hour. Note, you have to round Junior pay rates to the nearest 10 cents. If the cents are $0.05 or more, round up. If they’re $0.04 or less, round down.
Junior apprentices (cooking trade)	Apprentices in the cooking trade under 21	Minimum rates 1st year: 55% of Level 4 rate 2nd year: 65% of Level 4 rate 3rd year: 80% of Level 4 rate 4th year: 95% of Level 4 rate Competency-based wage progression If the apprenticeship follows a competency model, pay increases with training milestones: Stage 1 (On commencement): 55% Stage 2 (After completing 25% of training or 12 months): 65% Stage 3 (After completing 50% of training or 12 months after Stage 2): 80% Stage 4 (After completing 75% of training or 12 months after Stage 3): 95% Proficiency payments Apprentices who perform well in their schooling can earn the standard rate earlier in their final year: 1 proficiency pass: standard rate for the last 3 months of 4th year 2 passes: standard rate for the last 6 months 3 passes: standard rate for the entire 4th year	A 19-year-old in their second year of a cooking apprenticeship earns 65% of the Level 4 rate. That’s $694.50 a week or $18.28 an hour.
Adult apprentices (cooking trade)	Apprentices in the cooking trade aged 21 and over	1st year: The higher of 80% of the Level 4 rate or the 1st year junior apprentice rate. 2nd year onwards: The higher of the lowest adult classification rate or the relevant junior apprentice rate.	A 24-year-old starting a first-year cooking apprenticeship earns 80% of the Level 4 rate. That’s $854.70 a week or $21.72 an hour. Note, if an existing employee has worked for the business for at least 6 months full-time (or 12 months part-time or regular casual) before starting an adult apprenticeship, then you can’t reduce their pay when they move into the apprenticeship.
Higher duties	For employees who perform duties of a classification higher than their ordinary classification.	For less than two hours: An employer must pay an employee the minimum hourly rate for that higher classification for the time during which those duties were performed. For more than two hours: An employer must pay an employee the minimum hourly rate for that higher classification for the whole shift.	A grade 1 food and beverage attendant performing Level 3 duties for two hours will be paid the Level 3 rate of $25.80 for those two hours.
Supported wage system	Employees with a disability who qualify for the Supported Wage System	Pay a percentage of the relevant minimum rate based on their assessed work capacity. These rates are under Schedule E.	An employee assessed at 60% capacity earns 60% of the minimum hourly rate for their classification.
National training wage	Employees undertaking a traineeship	These rates come from Schedule E of the Miscellaneous Award 2020.	A full-time trainee who has just finished Year 12, doing a Certificate III under Wage Level A, earns $540.50 per week. For part-time trainees in the same category, the hourly rate would be $17.77 per hour.

Restaurant Industry Award allowances

On top of minimum pay rates, the Restaurant Award includes some allowances. These cover extra costs your staff might incur while doing their jobs. Here are the main ones:

Meal allowance: If someone works over two hours of overtime without being told the day before, you need to either provide them with a meal or pay $16.73. If they bring their own meal after being told to work overtime, but you cancel the overtime or cut it short (to two hours or less), they still get $16.73.
Split-shift allowance: If an employee works a split shift or has a broken workday, you need to pay $5.34 for each separate work period of two hours or more.
Tool and equipment allowance: If a cook or apprentice cook has to use their own tools, you must pay a tool allowance of $2.03 per day. It caps at $9.94 per week. If you require them to buy tools or equipment that you don’t supply, you have to reimburse the cost.
Special clothing allowance: If you require special uniforms or protective clothing (other than shoes, socks, or regular black-and-white attire), you must either supply them or reimburse the full cost. If employees have to wash these uniforms themselves, you also need to pay a reasonable laundry allowance or reimburse the cleaning cost.
Distance work allowance: If staff need to travel away from their usual workplace to another site, you need to pay them at their ordinary hourly rate for the travel time (both ways). If you send them 80km or more from their regular workplace for a short-term job, you must also cover their transport costs both ways.

Pay and manage all types of Restaurant Award employees in Rippling

See Rippling

Restaurant Award superannuation

Super rules mostly come from the Superannuation Guarantee (Administration) Act 1992 and the National Employment Standard (NES). The Fast Food Award just adds some detail about which funds you can use if an employee doesn’t nominate their own.

Here’s what you need to know:

How much to pay: Super is currently 12% of an employee’s ordinary time earnings (OTE). Most businesses pay it with each pay run. At the latest, you must pay it quarterly.
Who gets it: All employees aged 18 and over get super. For employees under 18, you only pay super if they work over 30 hours in a week.
Fund choice: New starters must fill out a Standard Choice Form during the onboarding process. If they don’t pick a fund, check with the ATO for their stapled fund. If they don’t have one, you can pay into one of the award’s default funds.
Extra contributions: Employees can ask you in writing to send extra contributions (salary sacrifice or post-tax). 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 keep paying super when employees are on paid leave. You also keep paying for up to 52 weeks if they’re away with a work-related injury or illness. This is assuming they’re still employed and receiving workers’ comp or other regular payments.

Restaurant Industry Award overtime

Overtime kicks in when employees work more than their ordinary hours. You calculate it separately for each day they work extra hours.

Full-time employees: Overtime applies when they work over 38 hours in a week or outside the ordinary spread of hours. Under the Restaurant Award, that's 6 a.m. to midnight, Monday to Sunday.
Part-time employees: Overtime applies when they work more than their agreed hours or outside their usual roster.
Casual employees: Overtime applies after 38 hours in a week or 12 hours in a day.
Rostered or accrued day off: When an employee works on a rostered or accrued day off, you need to pay them overtime rates for a minimum of four hours.

Note, employees who finish overtime must have at least eight hours off before starting their next shift. If they start sooner, you must keep paying overtime rates until they’ve had an eight-hour break.

Hours of overtime worked per day	Overtime rate
Monday to Friday (first 2 hours)	150% of minimum hourly rate
Monday to Friday (after 2 hours)	200% of minimum hourly rate
Saturday (first 2 hours)	175% of minimum hourly rate
Saturday (after 2 hours)	200% of minimum hourly rate
Sunday (all time worked)	200% of minimum hourly rate
Rostered day off (all time worked)	200% of minimum hourly rate
Public holiday (all time worked)	250% of minimum hourly rate

Example

Jackie is a full-time cook classified at Level 3. She earns $26.70 an hour for a 38-hour week. One week, she works an extra eight hours beyond her usual hours. Three on Wednesday, two on Saturday, and three on Sunday.

Here’s how to work out her overtime pay:

Day	Overtime details	Calculation	Total
Wednesday	First 3 hours at 150%	3 × $26.70 × 1.5	$120.15
Saturday	First 2 hours at 175%	2 × $26.70 × 1.75	$93.45
Sunday	All 3 hours at 200%	3 × $26.70 × 2	$160.20

Total overtime pay = $120.15 + $93.45 + $160.20 = $373.80

Note, even though you pay full-timers a weekly salary, you calculate any extra hours, leave loading, or penalties using the hourly rate derived from that weekly amount.

Time off instead of overtime pay

You and your employees can agree for them to swap overtime pay for time off.

Agreement: Both sides must agree in writing before the employee works the overtime.
Equivalent time: The time off must match the overtime rate. For example, two hours at time-and-a-half equals three hours off.
Timing: Employees need to take the time off within six months of earning it.
Payment instead: If the employee asks for pay instead of time off, you must include it in the next pay run.
Unused time: If the employee doesn’t take the time off within six months, you must pay it out.
Leaving the job: If the employee finishes up with unused time off, you must pay for those hours when the employment ends.
No pressure: You can’t push employees to choose time off instead of overtime pay.

Restaurant Industry Award penalty rates

Penalty rates apply when employees work at certain times. For instance, late nights, weekends, or public holidays. The purpose of penalty rates is to make sure staff receive fair compensation for working less desirable hours that don’t count as overtime.

Full-time and part-time employees: Full-time and part-time staff earn higher rates for weekends and public holidays. They also earn these rates for late-night hours (10 p.m. to 6 a.m.) worked within their ordinary roster.
Casual employees (Levels 1–2): These employees get the same penalties as full-and part-time staff, plus their 25% casual loading. They also earn an extra amount for late-night hours between 10 p.m. and 6 a.m.
Casual employees (Levels 3–6): Higher-level casuals earn slightly higher penalty rates, with the same late-night loading for work done between 10 p.m. and 6 a.m.

When the employee works their ordinary hours	Full-time and part-time employees	Casual employees (Intro–Level 2)	Casual employees (Level 3–6)
Monday to Friday, 6 a.m.–10 p.m.	100% of minimum hourly rate	125% of minimum hourly rate	125% of minimum hourly rate
Monday to Friday, 10 p.m.–midnight	100% of minimum hourly rate + $2.81 per hour	125% of minimum hourly rate + $2.81 per hour or part of an hour	125% of minimum hourly rate + $2.81 per hour or part of an hour
Monday to Friday, midnight–6 a.m.	100% of minimum hourly rate + $4.22 per hour	125% of minimum hourly rate + $4.22 per hour or part of an hour	125% of minimum hourly rate + $4.22 per hour or part of an hour
Saturday	125% of minimum hourly rate	150% of minimum hourly rate	150% of minimum hourly rate
Sunday	150% of minimum hourly rate	150% of minimum hourly rate	175% of minimum hourly rate
Public holiday	225% of minimum hourly rate	250% of minimum hourly rate	250% of minimum hourly rate

Note, casual percentage includes casual loading.

Payment of wages under the Restaurant Industry Award

Pay frequency: You can pay employees weekly or fortnightly. You can also agree with an individual employee to pay monthly instead.
Pay day: You can pay on any day except Friday, Saturday, or Sunday. If most staff agree, you can pay on a Friday when there’s a public holiday in that week.
How to pay: You can pay by cash, cheque, or electronic transfer into the employee’s nominated account. Note, you can’t charge them fees for payment.
If payday falls on a rostered day off: An employee paid by cash or cheque can choose to be paid on their last working day before the RDO.
When employment ends: You must pay all final wages and entitlements within seven days of termination. For casuals, you pay at the end of their final shift or engagement. This includes all ordinary wages, allowances, leave balances, and any other amounts you owe.

Annualised wage arrangements

You and a full-time employee can agree in writing to an annualised wage. This can replace separate payments for ordinary hours, overtime, penalties, and certain allowances.

How it works

The annualised wage must be at least 25% above the employee’s minimum weekly pay rate, annualised over a year.
The agreement must clearly state:
- The annualised amount you will pay them.
- Which award clauses it covers (like overtime, penalties, split shifts, and annual-leave loading).
- The maximum number of penalty and overtime hours that they can work before extra payment applies.
If an employee works beyond those limits, you must pay extra at the award rates.

Record-keeping

You must keep a signed copy of the annualised wage agreement and record start and finish times and breaks for each pay period. You must also have the employee sign or acknowledge those records.

Annual review

Every 12 months (or when employment ends), you must compare what the employee actually earned under the agreement with what they would have earned under the award. If the annualised wage is less, you must pay the shortfall within 14 days.

Ending the arrangement

Either side can end the annualised wage agreement with 12 months’ written notice, or by mutual written consent at any time.

Restaurant Award leave

Most leave entitlements come from the National Employment Standards (NES). The Restaurant Industry Award adds a few details here and there. These are mostly around annual leave loading, shutdowns, and managing excessive balances.

Annual leave

Entitlement: Full-time employees get four weeks of paid annual leave per year. Part-time staff also get this, but build it up on a pro rata basis. Casuals don’t get annual leave. Their 25% casual loading covers that.
Leave loading: When someone takes annual leave, you add 17.5% on top of their base rate, or the weekend penalty they would have earned (whichever is higher).
Advance leave: You and the employee can agree in writing for them to take leave before they accrue it. If they leave before earning it back, you can deduct the balance from their final pay.
Cashing out: Employees can cash out up to two weeks of annual leave in any 12-month period. The agreement must be in writing. And they must keep at least four weeks in their balance after cashing out.
Excessive leave: If an employee builds up more than eight weeks of annual leave, that’s considered excessive.
- You can direct them to take some of it if you can’t agree on a plan. They just need to keep at least six weeks accrued.
- You can’t direct them to take more than four weeks in a 12-month period.
- Employees with excessive leave can also give you notice to take some of it under the same limits.
Shutdowns: If you close down for a seasonal break (for example, over Christmas), you can direct employees to take annual leave. This is assuming you give at least four weeks’ written notice. If someone doesn’t have enough leave, they can take unpaid leave for the balance.
Termination: When employment ends, you must pay out all unused annual leave. This includes the 17.5% loading.

Other types of leave

Sick leave/personal carer’s leave: Full-time employees get 10 paid days each year. Part-timers get it on a pro rata basis. Casuals don’t get paid sick leave. However, they can take up to 48 hours of unpaid carer’s leave on each occasion.
Compassionate leave: Employees can take two days of compassionate leave each time a close family or household member dies or suffers a life-threatening illness or injury. Full-time and part-time staff get paid during this time; casuals don't.
Parental leave: Full-time, part-time, and regular casuals with 12 months’ service can take up to 12 months of unpaid parental leave. They can also request another 12 months.
Community service leave: Employees can take leave for activities like jury duty or emergency service. Full-time and part-time staff get paid for the first 10 days of jury duty; casuals don't. All other community service leave is unpaid, for all types of employees.
Family and domestic violence leave: All employees (including casuals) get 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’d normally work. Casuals only get paid if they actually work that day.
Penalty rates: If an employee works on a public holiday:
- Full-time and part-time staff earn 225% of their minimum hourly rate.
- Casuals earn 250% (this includes their 25% loading).
- You must pay for at least four hours, even if the shift is shorter.
Substitution: You and the employee can agree in writing to swap a public holiday (or part-day public holiday) for another day. If a public holiday falls on a weekend, a substitute weekday usually applies automatically.
Requests to work: You can ask an employee to work on a public holiday if the request is reasonable. They can refuse if they have reasonable grounds.
Recognised days: Public holidays include national holidays (like New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Christmas Day, and Boxing Day). There are also public holidays unique to states and territories.

See how Rippling helps with Restaurant Industry Award leave, superannuation, and more.

See Rippling

8 tips for Restaurant Industry Award payment management

Stay on top of Restaurant Award updates: Award rates usually change every July after Fair Work’s annual wage review. You need to stay across these updates to avoid underpaying staff and breaching wage-theft laws.
Use reliable payroll software: Paying staff manually is risky when rates, penalties, and allowances change so often. Payroll software built for the Australian market that can interpret modern awards can apply the correct rates automatically.
Keep accurate records: Record all hours, allowances, and leave. And keep those records for seven years. A good HRIS stores this securely and makes it easy to find later.
Audit your payroll regularly: Check your payroll setup a few times a year to make sure it aligns with the latest Restaurant Award. Good payroll software that updates automatically makes this easier.
Train your team: Make sure managers and payroll staff understand how the Restaurant Award works. Use a learning management system (LMS) to deliver short, updated training that helps prevent mistakes and build confidence.
Get expert advice: Award rules change often, and some clauses can be complex. Having a go-to IR or legal advisor can help you stay compliant and avoid backpay surprises.
Manage leave properly: Track annual, personal, and carer’s leave carefully to keep balances accurate and avoid large payouts later. Good HR software with effective leave management can make this simple and keep everyone on the same page.
Communicate with your team: Be open about how you calculate pay and when Award changes take effect. Clear communication builds trust and keeps everyone on the same page.

Nuances of the Restaurant Award

The Restaurant Industry Award has a few tricky bits that aren’t standard in other awards. Here are a few of them to be mindful of:

Nuance	What it means	Why it matters
Rounding junior pay rates	You must round Junior pay rates to the nearest $0.10. If the cents are $0.05 or more, round up. If they’re $0.04 or less, round down	Many payroll errors start here. If you don’t round correctly, you can easily underpay or overpay junior staff, which creates compliance risks.
Overtime for part-time and casual staff	Part-time staff earn overtime when they work beyond their agreed hours or outside their rostered times. Casuals earn overtime when they work more than 38 hours a week or 12 hours in a day.	It’s easy to miss these triggers when hours change week to week. Incorrectly classifying extra hours as ordinary time can lead to backpay and fines.
Late-night penalties	Work between 10 p.m. and 6 a.m. attracts an extra late-night loading, even if it falls within ordinary hours. The exact rate depends on the employee’s classification.	Late-night loadings are separate from overtime or weekend penalties. If you forget to apply them, you’ll underpay staff and risk breaching the Award.

Get Restaurant Industry Award pay right with Rippling

The Restaurant Industry Award comes with heaps of moving parts. Between late-night penalties, weekend rates, casual loadings, allowances, and super, there’s a lot to stay on top of. And trying to handle it all manually can quickly lead to mistakes or underpayments.

Rippling removes that pressure. Its all-in-one workforce management platform understands the Restaurant Award and applies the correct pay rates automatically. You don’t have to double-check calculations or deal with spreadsheets.

Rippling also takes care of all the extras that matter. For example, super contributions, annual leave loading, and final payouts when staff move on (which happens often in hospitality).

Because Rippling brings HR, payroll, and IT together in one system, everything stays connected. Timesheets and approved leave flow straight into payroll, hours update across the system in real time, and award changes sync automatically.

All you need to do is review, approve, and pay. No more staying back after close to fix rosters or reconcile payslips!

Hire, manage, and pay your employees, all from a single platform.

See Rippling

Disclaimer

Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting and legal advisers before engaging in any related activities or transactions.