Saturday and Sunday Penalty Rates by Award: 2025-2026 Guide
Weekend penalty rates are the single biggest source of underpayment claims in Australia. The Fair Work Ombudsman has repeatedly found that employers — particularly in hospitality, retail, and fast food — either do not apply penalty rates on weekends or apply the wrong multiplier.
The problem is that every Modern Award has its own penalty rate structure. A Saturday shift under the Hospitality Award attracts a different multiplier than a Saturday shift under the Retail Award. Casual rates include the 25% loading, which means the multipliers are different again. And some awards distinguish between "ordinary hours on Saturday" and "overtime on Saturday," adding another layer of complexity.
This guide provides the weekend penalty rates for the most commonly used Modern Awards in Australia, with actual dollar amounts based on the rates effective from 1 July 2025.
How Weekend Penalty Rates Work
Penalty rates are multipliers applied to the base hourly rate. The base hourly rate is the minimum rate for the relevant classification level under the award, calculated by dividing the weekly rate by 38.
There are three key principles:
- Permanent employees (full-time and part-time) receive penalty rates as a multiplier of their base rate
- Casual employees receive a different multiplier that already includes the 25% casual loading — you do not add casual loading on top
- Overtime on weekends may attract a higher rate than ordinary weekend work — check the overtime clause of your award
The rates listed below are for ordinary hours worked on Saturday and Sunday unless otherwise noted.
Hospitality Industry (General) Award (MA000009)
The Hospitality Award covers employees in hotels, motels, restaurants, cafes, catering, accommodation, and licensed clubs.
Base hourly rate (Level 1): $23.23
| Day | Permanent Multiplier | Permanent Rate | Casual Multiplier | Casual Rate |
|---|---|---|---|---|
| Monday-Friday | 100% | $23.23 | 125% | $29.04 |
| Saturday | 125% | $29.04 | 150% | $34.85 |
| Sunday | 150% | $34.85 | 175% | $40.65 |
| Public Holiday | 225% | $52.27 | 250% | $58.08 |
Key clauses: Clause 15 (ordinary hours), clause 26 (penalty rates), clause 28 (overtime).
Note that the Hospitality Award differentiates penalty rates based on the employer type. The rates above apply to restaurants, cafes, and catering. Hotels, motels, and clubs have slightly different arrangements — check the specific clauses.
Level 2 base rate: $23.67
| Day | Permanent Rate | Casual Rate |
|---|---|---|
| Saturday | $29.59 | $35.51 |
| Sunday | $35.51 | $41.42 |
Level 3 base rate: $24.16
| Day | Permanent Rate | Casual Rate |
|---|---|---|
| Saturday | $30.20 | $36.24 |
| Sunday | $36.24 | $42.28 |
General Retail Industry Award (MA000004)
The Retail Award covers employees in retail businesses including shops, online retailers, and retail warehouses.
Base hourly rate (Level 1): $23.23
| Day | Permanent Multiplier | Permanent Rate | Casual Multiplier | Casual Rate |
|---|---|---|---|---|
| Monday-Friday | 100% | $23.23 | 125% | $29.04 |
| Saturday | 125% | $29.04 | 150% | $34.85 |
| Sunday | 150% | $34.85 | 175% | $40.65 |
| Public Holiday | 225% | $52.27 | 250% | $58.08 |
Key clauses: Clause 15 (ordinary hours), clause 26 (penalty rates), clause 28 (overtime).
Note the Retail Award underwent significant penalty rate changes during 2017-2020 following the FWC's Penalty Rates Decision. Sunday rates for permanent employees were phased down from 200% to the current 150%. This does not affect the current obligations — employers must apply the rates as they stand now.
Level 2 base rate: $23.67
| Day | Permanent Rate | Casual Rate |
|---|---|---|
| Saturday | $29.59 | $35.51 |
| Sunday | $35.51 | $41.42 |
Level 3 base rate: $24.68
| Day | Permanent Rate | Casual Rate |
|---|---|---|
| Saturday | $30.85 | $37.02 |
| Sunday | $37.02 | $43.19 |
Restaurant Industry Award (MA000119)
The Restaurant Award covers employees in restaurants that are not part of a hotel or club.
Base hourly rate (Level 1): $23.23
| Day | Permanent Multiplier | Permanent Rate | Casual Multiplier | Casual Rate |
|---|---|---|---|---|
| Monday-Friday | 100% | $23.23 | 125% | $29.04 |
| Saturday | 125% | $29.04 | 150% | $34.85 |
| Sunday | 150% | $34.85 | 175% | $40.65 |
| Public Holiday | 225% | $52.27 | 250% | $58.08 |
Key clauses: Clause 29 (penalty rates), clause 31 (overtime).
Fast Food Industry Award (MA000003)
The Fast Food Award covers employees in fast food and takeaway businesses.
Base hourly rate (Level 1): $23.23
| Day | Permanent Multiplier | Permanent Rate | Casual Multiplier | Casual Rate |
|---|---|---|---|---|
| Monday-Friday | 100% | $23.23 | 125% | $29.04 |
| Saturday | 125% | $29.04 | 150% | $34.85 |
| Sunday | 150% | $34.85 | 175% | $40.65 |
| Public Holiday | 225% | $52.27 | 250% | $58.08 |
Key clauses: Clause 24 (penalty rates), clause 26 (overtime).
Clerks — Private Sector Award (MA000002)
The Clerks Award covers clerical and administrative employees across all private sector industries.
Base hourly rate (Level 1): $23.23
| Day | Permanent Multiplier | Permanent Rate | Casual Multiplier | Casual Rate |
|---|---|---|---|---|
| Monday-Friday | 100% | $23.23 | 125% | $29.04 |
| Saturday (first 2 hrs) | 150% | $34.85 | 175% | $40.65 |
| Saturday (after 2 hrs) | 200% | $46.46 | 225% | $52.27 |
| Sunday | 200% | $46.46 | 225% | $52.27 |
| Public Holiday | 250% | $58.08 | 275% | $63.88 |
Key clauses: Clause 21 (overtime), clause 26 (penalty rates).
Note that the Clerks Award has higher weekend rates than hospitality and retail awards because Saturday and Sunday are generally outside the ordinary hours span for clerical workers. Weekend work under the Clerks Award is treated as overtime.
Level 2 base rate: $24.16
| Day | Permanent Rate | Casual Rate |
|---|---|---|
| Saturday (first 2 hrs) | $36.24 | $42.28 |
| Saturday (after 2 hrs) | $48.32 | $54.36 |
| Sunday | $48.32 | $54.36 |
Level 3 base rate: $24.68
| Day | Permanent Rate | Casual Rate |
|---|---|---|
| Saturday (first 2 hrs) | $37.02 | $43.19 |
| Saturday (after 2 hrs) | $49.36 | $55.53 |
| Sunday | $49.36 | $55.53 |
Hair and Beauty Industry Award (MA000005)
Base hourly rate (Level 1): $23.23
| Day | Permanent Multiplier | Permanent Rate | Casual Multiplier | Casual Rate |
|---|---|---|---|---|
| Monday-Friday | 100% | $23.23 | 125% | $29.04 |
| Saturday (before 12pm) | 133% | $30.90 | 158% | $36.70 |
| Saturday (after 12pm) | 150% | $34.85 | 175% | $40.65 |
| Sunday | 200% | $46.46 | 225% | $52.27 |
| Public Holiday | 250% | $58.08 | 275% | $63.88 |
Key clauses: Clause 20 (penalty rates), clause 22 (overtime).
The Hair and Beauty Award has a split Saturday rate — the first half of the day attracts a lower penalty than the afternoon. This is unique among the major awards and frequently causes calculation errors.
Cleaning Services Award (MA000022)
Base hourly rate (Level 1): $23.23
| Day | Permanent Multiplier | Permanent Rate | Casual Multiplier | Casual Rate |
|---|---|---|---|---|
| Monday-Friday | 100% | $23.23 | 125% | $29.04 |
| Saturday | 150% | $34.85 | 175% | $40.65 |
| Sunday | 200% | $46.46 | 225% | $52.27 |
| Public Holiday | 250% | $58.08 | 275% | $63.88 |
Key clauses: Clause 24 (penalty rates), clause 26 (overtime).
Building and Construction General On-site Award (MA000020)
Base hourly rate (Level 1 / CW1): $23.23
| Day | Permanent Multiplier | Permanent Rate | Casual Multiplier | Casual Rate |
|---|---|---|---|---|
| Monday-Friday | 100% | $23.23 | 125% | $29.04 |
| Saturday (first 2 hrs) | 150% | $34.85 | 175% | $40.65 |
| Saturday (after 2 hrs) | 200% | $46.46 | 225% | $52.27 |
| Sunday | 200% | $46.46 | 225% | $52.27 |
| Public Holiday | 250% | $58.08 | 275% | $63.88 |
Key clauses: Clause 36 (overtime), clause 37 (penalty rates).
Social, Community, Home Care and Disability Services Award (MA000100)
Base hourly rate (Level 1): $23.23
| Day | Permanent Multiplier | Permanent Rate | Casual Multiplier | Casual Rate |
|---|---|---|---|---|
| Monday-Friday | 100% | $23.23 | 125% | $29.04 |
| Saturday | 150% | $34.85 | 175% | $40.65 |
| Sunday | 200% | $46.46 | 225% | $52.27 |
| Public Holiday | 250% | $58.08 | 275% | $63.88 |
Key clauses: Clause 25 (penalty rates), clause 28 (overtime).
Common Mistakes with Weekend Penalty Rates
Mistake 1: Paying a Flat Casual Rate on Weekends
The 25% casual loading does not replace weekend penalty rates. Casual employees are entitled to specific weekend penalty rates that are higher than their ordinary casual rate. Paying $29.04/hr (the ordinary casual rate) on a Sunday when the correct rate is $40.65/hr is a $11.61/hr underpayment.
Mistake 2: Adding Casual Loading on Top of Casual Penalty Rates
The opposite error. The casual penalty rates published by the FWC already include the 25% loading. If the casual Sunday rate is shown as 175%, that is the total — do not multiply by 1.25 again.
Mistake 3: Applying the Wrong Award's Penalty Rates
A business that operates a cafe inside a retail precinct might assume the Retail Award applies when the Restaurant Industry Award is the correct one. While the weekend multipliers happen to be similar for these awards, this error can cascade into other calculations like overtime and allowances.
Mistake 4: Not Distinguishing Between Ordinary and Overtime Weekend Work
Some awards apply different rates for ordinary weekend hours versus overtime on weekends. For example, if an employee has already worked 38 hours during the week and then works on Saturday, those Saturday hours may be overtime rather than ordinary hours, attracting a higher rate.
How AirComply Eliminates Weekend Pay Errors
Instead of looking up tables and calculating multipliers manually, use AirComply's calculator. Select the award, classification level, employment type, and day — the correct rate appears instantly.
Check weekend rates now — free for all 155 Modern Awards.
Frequently Asked Questions
Are Saturday penalty rates mandatory?
Yes. Penalty rates specified in a Modern Award are legally binding minimum entitlements. An employer cannot contract out of penalty rates unless there is an enterprise agreement in place that has been approved by the Fair Work Commission and passes the Better Off Overall Test.
Can I offer a higher base rate instead of paying penalty rates?
Only if there is a valid set-off arrangement in the employment contract that clearly identifies which award entitlements are being absorbed, and the total remuneration is sufficient to cover all award entitlements including penalty rates across all hours worked. This must be tested each pay period. Get legal advice before relying on a set-off clause.
Do penalty rates apply to salaried employees?
Yes. If a salaried employee is covered by a Modern Award, you must ensure their annual salary is sufficient to cover all award entitlements for the hours they actually work, including weekend penalty rates. This requires a reconciliation at least annually.
When did Sunday penalty rates change for retail and hospitality?
The FWC's Penalty Rates Decision in 2017 reduced Sunday rates for permanent employees in the retail, hospitality, fast food, and pharmacy awards. The reductions were phased in over several years and are now fully implemented. Current rates are as shown in the tables above.
Do junior employees get lower penalty rates?
Junior employees (under 21) receive a percentage of the adult rate based on their age, and penalty rate multipliers apply to that lower base rate. For example, a 17-year-old casual retail employee earns 70% of the adult base rate, and the weekend penalty multiplier is applied to that lower amount.
What about shift workers — do they get different weekend rates?
Some awards have specific shift worker provisions that may vary the penalty rate structure for employees working in continuous shift operations. Check the shift work clause of your specific award if you operate 24/7 or have rotating shift patterns.