The Complete Guide to the Restaurant Industry Award Pay Rates
The Restaurant Industry Award 2020 (MA000119) sets the minimum pay rates and conditions for around 350,000 workers in Australian restaurants, cafes, coffee shops, takeaway outlets, and catering businesses. If you run a food business or work in one, this award almost certainly affects you.
Misclassification is one of the most common sources of underpayment in restaurants. An employee's classification is determined by the duties they actually perform, not their job title.
This guide covers every pay rate, penalty, and allowance you need to know, drawn directly from the Fair Work Commission's published data. All rates are effective from 1 July 2025 following the most recent Annual Wage Review.
Who Does This Award Cover?
The Restaurant Industry Award applies to employers and employees in the restaurant industry (clause 4.1). This includes:
- Restaurants (dine-in, takeaway, or both)
- Cafes and coffee shops
- Catering businesses
- Takeaway food outlets that are not fast food chains
- Licensed and unlicensed food service establishments
It does not cover:
- Hotels, motels, pubs, and clubs: These fall under the Hospitality Industry (General) Award (MA000009)
- Fast food chains: These fall under the Fast Food Industry Award (MA000003)
- Institutional catering in hospitals, schools, or similar: Often covered by other specific awards
The dividing line can be confusing. The general rule is: if the business primarily serves food and drink (whether for consumption on the premises or as takeaway) and is not part of a hotel, pub, club, or fast food franchise, it is under the Restaurant Award.
The general rule is: if the business primarily serves food and drink and is not part of a hotel, pub, club, or fast food franchise, it is under the Restaurant Award.
Classification Levels: Where Each Employee Fits
The award has two streams: Food and Beverage Attendants (front-of-house) and Kitchen Employees (back-of-house). Each stream has multiple levels based on skills, responsibilities, and qualifications.
Food and Beverage Attendant Grades
| Grade | Typical Roles and Duties (Schedule A) | Weekly Rate | Hourly Rate | Casual Rate |
|---|---|---|---|---|
| Grade 1 | Clearing tables, washing dishes, cleaning, basic food assembly, delivery drivers | $913.90 | $24.05 | $30.06 |
| Grade 2 | Greeting and seating guests, taking orders, serving food and drinks, barista work, basic bar service | $938.22 | $24.69 | $30.86 |
| Grade 3 | Responsible service of alcohol, cocktail making, silver service, training junior staff | $950.38 | $25.01 | $31.26 |
| Grade 4 | Supervising food and beverage operations, wine service, function coordination, front-of-house management | $970.90 | $25.55 | $31.94 |
Kitchen Employee Grades
| Grade | Typical Roles and Duties (Schedule A) | Weekly Rate | Hourly Rate | Casual Rate |
|---|---|---|---|---|
| Kitchen Attendant Grade 1 | General kitchen hand duties, cleaning, dishwashing, basic food preparation | $913.90 | $24.05 | $30.06 |
| Kitchen Attendant Grade 2 | Experienced kitchen hand, assisting cooks, operating kitchen equipment | $938.22 | $24.69 | $30.86 |
| Kitchen Attendant Grade 3 | Skilled food preparation, cooking breakfasts, sandwiches, simple dishes | $950.38 | $25.01 | $31.26 |
| Cook Grade 1 | Cooking under supervision, following set recipes and methods | $950.38 | $25.01 | $31.26 |
| Cook Grade 2 | Qualified cook (trade certificate or equivalent), working independently | $970.90 | $25.55 | $31.94 |
| Cook Grade 3 | Sous chef duties, menu planning assistance, supervising other cooks | $1003.58 | $26.41 | $33.01 |
| Cook Grade 4 | Head chef, full kitchen management, menu development, stock and budget management | $1028.66 | $27.07 | $33.84 |
| Cook Grade 5 | Executive chef, multi-outlet or large-scale kitchen operations, executive-level responsibility | $1070.46 | $28.17 | $35.21 |
Important note about classification: An employee's classification is determined by the duties they actually perform, not their job title. If someone is hired as a "kitchen hand" but regularly performs cooking duties without supervision, they should be classified (and paid) as a Cook. Misclassification is one of the most common sources of underpayment in restaurants.
Penalty Rates: The Full Picture
The Restaurant Industry Award has penalty rates for weekends, public holidays, and certain types of overtime. These rates are set out in Part 5 of the award (clauses 27 to 33).
Full-Time and Part-Time Penalty Rates
| When | Multiplier | Grade 1 Hourly | Grade 2 Hourly | Grade 3 Hourly |
|---|---|---|---|---|
| Mon-Fri ordinary hours | 100% | $24.05 | $24.69 | $25.01 |
| Saturday | 125% | $30.06 | $30.86 | $31.26 |
| Sunday (Intro to Level 2) | 150% | $36.08 | $37.04 | N/A |
| Sunday (Level 3 to Level 6) | 175% | N/A | N/A | $43.77 |
| Public holiday | 225% | $54.11 | $55.55 | $56.27 |
The Restaurant Award has level-specific Sunday rates. Introductory and Level 1-2 employees get 150% on Sundays, while Level 3 and above get 175%. This is unusual among Modern Awards and is something many employers miss. The distinction is set out in the FWC's penalty rate tables for this award.
Casual Penalty Rates
| When | Multiplier | Grade 1 Hourly | Grade 2 Hourly | Grade 3 Hourly |
|---|---|---|---|---|
| Mon-Fri ordinary hours | 125% | $30.06 | $30.86 | $31.26 |
| Saturday | 150% | $36.08 | $37.04 | $36.24 |
| Sunday | 175% | $42.09 | $43.21 | $43.77 |
| Public holiday | 250% | $60.13 | $61.73 | $62.53 |
All casual rates include the 25% casual loading. They are flat multipliers applied to the base rate. Do not add casual loading on top of these figures.
Overtime Rates
Overtime applies when a full-time or part-time employee works:
- More than 11.5 hours in a day (clause 32.1(a))
- More than 38 hours in a week (clause 32.1(a))
- Outside the ordinary hours span of 7am to midnight (clause 27.1)
For part-time employees, overtime also applies if they work beyond their agreed daily or weekly hours, even if those hours are less than 11.5 per day or 38 per week (clause 32.1(b)).
| When Overtime Occurs | Multiplier | Grade 1 Rate |
|---|---|---|
| Monday to Friday, first 2 hours | 150% | $36.08 |
| Monday to Friday, after 2 hours | 200% | $48.10 |
| Saturday, first 2 hours | 150% | $36.08 |
| Saturday, after 2 hours | 200% | $48.10 |
| Sunday, all hours | 200% | $48.10 |
| Public holiday, all hours | 250% | $60.13 |
| Rostered day off | 200% | $48.10 |
Casual overtime: The Restaurant Award does provide for casual overtime (clause 32). When casual overtime applies, it is calculated on the base rate (not the casual-loaded rate). This is a common point of confusion. A casual working overtime on a weekday earns $36.08 per hour (150% of $24.05), not $45.09 (150% of $30.06).
When Overtime Rate Meets Penalty Rate
When an employee works overtime on a penalty day (say, overtime on a Sunday), they receive the higher of the overtime rate or the penalty rate (clause 32.3). They do not receive both.
For example: a full-time Grade 1 employee works 13 hours on a Sunday.
- Hours 1 to 11.5: Sunday penalty rate of 150% = $36.08/hr
- Hours 11.5 to 13: Overtime rate would be 200% = $48.10/hr. Sunday penalty is 150%. The higher of the two is 200%, so $48.10/hr applies for the overtime hours.
Casual overtime under the Restaurant Award is calculated on the base rate, not the casual-loaded rate. A casual working overtime on a weekday earns $36.08/hr (150% of $24.05), not $45.09 (150% of $30.06).
Ordinary Hours: The Span That Matters
Under the Restaurant Award, ordinary hours can be worked between 7am and midnight on any day of the week (clause 27.1). The maximum daily hours are 11.5, and the maximum weekly hours are 38.
Hours can be averaged over a period of up to 4 weeks, so an employee might work 45 hours one week and 31 hours the next, as long as the average is 38 or less (clause 27.2).
This is one of the more generous spans among Modern Awards. By comparison, the General Retail Award limits ordinary hours to 7am-9pm on weekdays, the Clerks Award limits them to 7am-7pm, and retail Sunday hours can only start from 9am.
Minimum Engagement Rules
Casual employees: Must be engaged and paid for a minimum of 2 hours per shift (clause 12.3). This is one of the lowest minimum engagements across all Modern Awards.
Part-time employees: Must be engaged for a minimum of 3 hours per shift (clause 11.3).
These minimums matter. If you call a casual worker in and send them home after 45 minutes because the restaurant is quiet, you still owe them 2 hours of pay at the applicable rate.
If you call a casual worker in and send them home after 45 minutes, you still owe them 2 hours of pay at the applicable rate.
Break Entitlements
Meal Breaks
Employees who work more than 6 continuous hours are entitled to an unpaid meal break of at least 30 minutes but no more than 60 minutes (clause 29.1).
If a meal break is not provided, the employee must be paid at overtime rates from the time the break was due until the break is given or the shift ends.
Rest Breaks
- Shifts of 4 to 8 hours: One paid 10-minute rest break (clause 29.3)
- Shifts of 8 hours or more: Two paid 10-minute rest breaks
Between Shifts
A minimum break of 10 hours must be provided between the end of one shift and the start of the next (clause 32.4). If the break is less than 10 hours, the employee is entitled to be paid at overtime rates until they have had a 10-hour break.
If a meal break is not provided after 6 continuous hours, the employee must be paid at overtime rates until a break is given. A 10-hour minimum break between shifts is also required.
Allowances Under the Restaurant Award
Meal Allowance
Payable when an employee is required to work more than 1 hour of overtime and was not notified the day before (clause 32.5). The amount is updated annually by the FWC. This is more generous than the Hospitality Award's 2-hour threshold.
Split Shift Allowance
Where an employee works a split shift (a shift with an unpaid break of more than one hour between two periods of work), a split shift allowance may be payable. Check the current FWC pay guide for the applicable amount.
Uniform and Laundry Allowance
If the employer requires the employee to wear a uniform and does not provide laundering, a laundry allowance is payable per shift. This applies to both front-of-house and kitchen staff.
Restaurant Award vs Hospitality Award: Key Differences
Many business owners are unsure whether they fall under the Restaurant Award (MA000119) or the Hospitality Award (MA000009). Here are the main differences in pay and conditions:
| Feature | Restaurant Award (MA000119) | Hospitality Award (MA000009) |
|---|---|---|
| Coverage | Restaurants, cafes, catering | Hotels, motels, pubs, clubs |
| Sunday rate (permanent, lower levels) | 150% | 150% |
| Public holiday rate (permanent) | 225% | 225% |
| Casual public holiday rate | 250% | 250% |
| Minimum casual engagement | 2 hours | 2 hours |
| Daily maximum ordinary hours | 11.5 hours | 11.5 hours |
| Overtime meal allowance threshold | 1 hour | 2 hours |
| Level-specific Sunday rates | Yes (150% vs 175% by level) | No (flat 150% for all) |
The rates are similar, but the Restaurant Award's level-specific Sunday rates and lower overtime meal allowance threshold are important distinctions.
Set a calendar reminder for late June to download the updated pay guide for the Restaurant Award and update your payroll system before the first July pay run.
How to Stay Compliant
1. Classify every employee correctly
Review Schedule A of the award and match each employee's actual duties to the correct classification level. Review this whenever an employee's duties change.
2. Update rates after every Annual Wage Review
The FWC announces new rates each June, effective 1 July. Set a calendar reminder to update your payroll system.
3. Track hours and days accurately
Your rostering system needs to record not just total hours but when those hours were worked (what day, what time). Without this data, you cannot calculate penalty rates correctly.
4. Audit your payroll quarterly
Run a report comparing actual hourly rates paid against the rates required under the award, broken down by day and time. Look for patterns like flat rates being paid across weekdays and weekends.
5. Use a rate calculator
Manual rate lookups are slow and error-prone. Use a purpose-built tool that accounts for the full complexity of the award.
[Try the AirComply Award Calculator](https://aircomply.app/chat) to check Restaurant Industry Award rates for any classification level, any day, and any time. It covers all penalty rates, overtime calculations, and casual loading automatically.
Frequently Asked Questions
What is the minimum wage for a restaurant worker in Australia?
The minimum hourly rate for a Level 1 employee (Kitchen Attendant or Food and Beverage Attendant Grade 1) under the Restaurant Industry Award is $24.05 per hour for permanent employees and $30.06 per hour for casuals (including 25% loading), effective 1 July 2025.
Do restaurant workers get penalty rates on weekends?
Yes. Full-time and part-time employees earn 125% on Saturdays and 150% or 175% on Sundays (depending on classification level). Casual employees earn 150% on Saturdays and 175% on Sundays. These are multipliers of the base hourly rate and, for casuals, already include the 25% casual loading.
How much do casual restaurant workers get paid on public holidays?
Casual restaurant workers earn 250% of their base hourly rate on public holidays. For a Grade 1 casual, that is $24.05 x 2.50 = $60.13 per hour. For a Grade 2 casual, it is $24.69 x 2.50 = $61.73 per hour.
What is the difference between the Restaurant Award and the Fast Food Award?
The Restaurant Industry Award (MA000119) covers traditional restaurants, cafes, and catering. The Fast Food Industry Award (MA000003) covers fast food and quick service restaurant chains. The main pay differences are in Sunday rates (level-specific in the Restaurant Award) and overtime thresholds (11.5 hours daily for Restaurant, 11 hours for Fast Food).
Can a restaurant pay a flat hourly rate instead of penalty rates?
No, an employer cannot unilaterally decide to pay a flat rate that ignores penalty rate obligations. The award rates are minimum legal entitlements. Paying below these rates is an underpayment, and from 1 January 2025, intentional underpayment is a criminal offence.
What happens if a casual works more than 38 hours in a week?
If the casual works more than 38 hours in a week (or more than 11.5 hours in a day), overtime rates apply under clause 32.1. Casual overtime is calculated on the base rate (not the casual-loaded rate). First 2 hours at 150%, then 200% after that for weekday overtime.
Does the Restaurant Award apply to food trucks?
Generally yes, if the food truck operates as a restaurant or takeaway business. The award covers employers "in the restaurant industry," which the FWC has interpreted broadly to include mobile food service operations. Check clause 4.1 for the full coverage provisions.