Running a fast-food business means juggling inventory, keeping customers happy, and trying to understand the Fast Food Industry Award 2020 [MA000003].
Minimum wages increased by 4.75% from the first full pay period starting on or after 1 July 2026. Employers must also use the current allowance amounts.
Below, we’ll help you understand who it applies to, how to classify employees, and how to stay compliant with Fair Work rules.
Key Takeaways
- The Fast Food Industry Award 2020 sets the minimum pay rates, penalty rates, and employment conditions for fast-food employees.
- Pay rates and allowances are reviewed each year and sometimes updated. From the first full pay period starting on or after 1 July 2026, the adult Level 1 minimum is $27.81/hour, with higher rates for casuals and higher classifications.
- Accurate employee classification, up-to-date pay rates, and reliable record-keeping are important for meeting Award and Fair Work compliance requirements.
Award Basics
The Fast Food Industry Award sets the minimum pay rates and working conditions for employees in Australia’s fast-food sector. It covers businesses that mainly prepare and sell food and drinks for quick service, whether at the counter, through drive-through, or by delivery.
The Award ensures your employees are paid fairly and receive the right entitlements, which include legal benefits (like leave) and minimum conditions (like breaks). It also lays out how pay increases with age, job level, and experience.
Employees are classified into 3 levels based on how complex their work is and how much supervision they need. These levels determine the minimum pay rate for each role.
The Award sits under the Fair Work Act 2009, which sets the national rules for pay and employment conditions in Australia. It’s reviewed and updated annually by the Fair Work Commission, the independent tribunal that sets and updates all modern awards. The Fair Work Ombudsman is the government agency that helps employers and employees understand and comply with it and other awards.
Who’s covered under the Fast Food Industry Award?
Businesses covered
If your business’s main activity is preparing and selling food or drinks for takeaway or quick service, the Award likely covers it. Covered businesses include:
- Burger chains and sandwich outlets.
- Pizza and fried-chicken shops.
- Quick-service cafés and takeaway venues.
- Drive-through or delivery-only outlets.
Both franchisees and independent businesses are covered if fast-food service is their main business activity.
Employees covered
The Award applies to most in-store and service roles, such as:
- Crew members and customer service assistants.
- Cooks, kitchen hands, baristas, and counter staff.
- Team leaders and shift supervisors without full managerial authority.
- Delivery drivers who are directly employed by the business.
Who isn’t covered under the Fast Food Industry Award?
The Award doesn’t apply to:
- Restaurant or café staff covered by the Restaurant Industry Award 2020.
- Workers in large retail outlets or supermarkets are covered by the General Retail Industry Award 2020.
- Managers or professionals who earn a high income and have their own employment contracts.
- Independent contractors and drivers who deliver through apps like Uber Eats, DoorDash, or Menulog.
Classifications and Levels
Under this modern award, what you pay an employee depends on their classification level and type of employment.
Classification levels
Each classification level sets out the type of work an employee performs and the level of supervision they need.
Higher levels come with higher pay because they involve more responsibility and skill. For example, the fast-food industry award rates for Level 2 employees are slightly higher than those of Level 1 employees since Level 2 employees have added skills and responsibility.
| Levels | Employees at this level are usually… | What they usually do |
| Level 1 | New workers | Take orders, handle payments, make simple food items, and keep the work area clean. Work under supervision. |
| Level 2 | More experienced workers | Can do most tasks confidently, use equipment, help open and close the store, and may help show new staff what to do. Need minimal supervision. |
| Level 3 | Senior staff/shift leaders | Help run the shift, give tasks to others, check safety and cleanliness, help with stock, and may help count money at the end of the day. |
Levels 1 to 3 cover most in-store fast-food roles. Some senior roles, like assistant managers or store managers, may not fall under the Award if they earn above the high income threshold (a yearly pay limit set by Fair Work for when someone is considered a higher-earning employee) and have their own employment contract.
Employment types
Full-time employees work an average of 38 ordinary hours per week on an ongoing basis. They receive all standard entitlements, including annual and personal leave. (More on these below.)
Part-time employees work regular hours that are fewer than 38 per week but have the same entitlements as full-time staff on a “pro-rata basis” (which means their pay and leave are calculated based on the hours they work, rather than on a full-time basis).
Casual employees work irregular hours without guaranteed shifts. Instead of paid leave, they receive a 25% casual loading: extra pay added to their hourly rate, which brings it to 125% of their base rate.
Note: Eligible casuals can use the NES employee choice pathway to notify their employer that they want to change to permanent employment. Do not rely on the former casual conversion rule.
Pay Rates and Entitlements
Minimum base rates
From the first full pay period starting on or after 1 July 2026, adult full-time and part-time employees must be paid at least the following rates:
| Levels | Minimum weekly rate for full-time employees | Minimum hourly rate for full-time and part-time employees |
| Level 1 | $1,056.80 | $27.81 |
| Level 2 | $1,119.10 | $29.45 |
| Level 3 | $1,136.40 – $1,150.40 | $29.91 – $30.27 |
| *These adult rates apply from the first full pay period starting on or after 1 July 2026 and match the current consolidated Award. | ||
You can pay above these minimum rates, but employers should never pay below them.
To learn about casual employee pay rates, refer to the Award, which outlines how casual rates are calculated.
Employees under 21 receive a percentage of the adult rate for their classification: 40% under 16, 50% at 16, 60% at 17, 70% at 18, 80% at 19, and 90% at 20. For example, a 17-year-old Level 1 employee receives $16.69/hour at the 2026 adult Level 1 rate.
Pro Tip
Check the latest pay rates using the Fair Work Ombudsman’s Pay and Conditions Tool (PACT) or the Fair Work Commission’s Modern Awards Pay Database. Enter the employee’s classification and employment type, and review updates each July after the Annual Wage Review.
Penalty rates
Penalty rates are higher pay rates that apply when work is done outside normal weekday hours, such as during late nights, weekends, or public holidays.
| Day + time worked | Rate for full-time and part-time employees (as a % of the minimum hourly rate) | Rate for casual employees (composite % of the minimum hourly rate, inclusive of casual loading) |
| Monday–Friday (10 pm–12 am) | 110% | 135% |
| Monday–Friday (12 am–6 am) | 115% | 140% |
| Saturday (any time) | 125% | 150% |
| Sunday (Level 1 employees) | 125% | 150% |
| Sunday (Level 2 & 3 employees) | 150% | 175% |
| Public holiday (any time) | 225% | 250% |
For example, a permanent adult Level 1 employee earns $34.76/hour for ordinary Sunday hours at 125%, or $62.57/hour on a public holiday at 225%.
Please note that these rates apply to ordinary hours worked. If an employee works extra hours beyond their usual or agreed hours, overtime rates apply.
Overtime rules and rates
When an employee works beyond their agreed or rostered ordinary hours, they’re working “overtime.” Overtime includes:
- More than 38 hours per week for all types of employees.
- Outside agreed hours for part-time staff.
- Over 11 hours in 1 day for part-time and full-time employees.
You’re required to pay employees working overtime higher pay. Overtime pay rates are as follows:
- First 2 hours of overtime: 150% of the base rate (time-and-a-half).
- Any hours after the first 2 hours of overtime: 200% of the base rate (double time).
- Sunday overtime: 200% of the ordinary hourly rate.
- Public holiday overtime: 250% of the ordinary hourly rate.
The above overtime rates apply to full-time and part-time employees. Casual overtime is 175% for the first 2 hours Monday to Saturday, 225% after 2 hours and on Sunday, and 275% on a public holiday.
Did You Know?
An employer and employee can agree in writing to time off instead of payment for particular overtime. The time off is equivalent to the overtime payment, so 2 hours at 150% produces 3 hours off. It must be taken within 6 months or paid as required.
Breaks and allowances
Employees covered under the Award receive specific rest breaks and allowances that reflect the fast-paced nature of the work and different shift conditions.
Meal and rest breaks
Under the Fast Food Industry Award, rest breaks are short pauses that count as paid work time, while meal breaks are longer, unpaid periods for eating or resting.
Break entitlements depend on the total hours worked in a shift:
| Hours worked | Required paid rest break(s) | Required unpaid meal break(s) |
| Less than 4 hours | None. | None. |
| 4 to less than 5 hours | One 10-minute paid rest break. | None. |
| 5 to less than 9 hours | One 10-minute paid rest break. | One 30–60-minute unpaid meal break. |
| 9+ hours | If 2 meal breaks are provided, one 10-minute paid rest break is required. If 1 meal break is provided, two 10-minute paid rest breaks are required (1 in each half of the shift). | One or two 30–60-minute unpaid meal breaks (depending on length of shift). |
Breaks should be scheduled so employees don’t work more than 5 continuous hours without a meal break.
For part-time employees, break times must be shown on the roster and can only be changed when the employer and the employee both agree to this.
If required breaks aren’t provided, you may be required to pay any affected employee extra to make up for the missed break(s), usually at their regular hourly rate for the length of the break they should’ve received. This is called back pay.
Common allowances
Employees may also receive extra payments, known as allowances, to cover work-related costs or conditions that are specific to fast-food work. They help cover work-related costs such as uniforms, travel, or meals during long shifts.
| Allowance type | When it applies | 2026 rates + description |
| Broken Hill allowance | When the workplace is within the County of Yancowinna in New South Wales (Broken Hill). | $47.90 per week, in addition to other payments. |
| Cold work allowance | When employees work in cold rooms or restock refrigerated areas, such as freezers or dairy cases. | Employees get $0.38/hour for general cold work. If the temperature is below 0 °C, an extra $0.59/hour applies (total $0.97/hour). |
| Meal allowance (overtime) | When an employee works more than 1 hour of overtime without 24 hours’ notice and can’t reasonably go home for a meal. | Employees get $17.33 for the first meal, then $15.66 for the second if overtime exceeds 4 hours. Employers may provide employees with a meal instead of payment. |
| Special clothing allowance | When employees are required to wear uniforms or protective clothing. | The employer must supply or pay for the clothing and replace it when worn out. If employees launder their own uniforms, they must be paid $6.42/week (for full-time employees) or $1.28/shift (for part-time or casual employees). |
| Motor vehicle allowance | When employees use their own vehicle for work purposes. | Employees receive $0.53/km of travel if they’re mainly delivering food or products, or they get $1.00/km for other business purposes. |
| Transport cost support | When employees finish after 10 pm or start before 7 am and regular transport isn’t available. | The employer must cover the cost of a safe trip home, such as taxi or rideshare fares. |
| Travelling time payment | When employees work temporarily at another location that takes longer to reach than usual. | Employees receive pay for extra travel time at their minimum hourly rate (Monday–Saturday), or at their minimum rate + 50% on Sundays or public holidays. They’re also reimbursed for any extra fares. |
Leave entitlements
You’re required to give employees covered by the Fast Food Industry Award paid or unpaid time off depending on their employment type and how long they’ve worked for you.
These entitlements come from both the Award and the National Employment Standards (NES). The NES sets the basic workplace rights that apply to most employees across Australia.
| Type of leave | Who it applies to | Entitlement | Definition + key points |
| Annual leave | Full-time and part-time employees (casual employees don’t get annual leave). | 4 weeks of paid leave for each year of service. | Used for rest, holidays, or time away from work. When annual leave is taken, employees get extra pay called leave loading (usually 17.5% extra, or the weekend rate if that’s higher). Each annual leave cash-out requires a separate written agreement. The employee must retain at least 4 weeks of accrued leave, and no more than 2 weeks can be cashed out in any 12-month period. |
| Personal and carer’s leave | Full-time and part-time employees. | 10 days of paid leave per year (pro-rata for part-time). | Covers illness, injury, or caring for close family. When paid leave runs out, employees can take 2 days of unpaid carer’s leave per occasion. Casual employees can take 2 days of unpaid carer’s leave per instance. |
| Parental leave | All employees who’ve worked with the same employer for at least 12 months in a row. | Up to 12 months of unpaid parental leave. | Covers birth, adoption, or placement of a child. Employees can request an extra 12 months. The NES also includes partner leave (for the other parent) and flexible parental leave (leave taken in smaller blocks). |
| Community service leave | All employees. | Unpaid leave for community service duties. | Includes time off for jury duty (with up to 10 days’ pay for full-time/part-time staff) and voluntary emergency management activities such as firefighting or flood response. |
If you need to check other leave options, just look at the leave section of the Fast Food Award and the National Employment Standards (NES).
The Fair Work Ombudsman’s leave calculator can help show how much paid or unpaid leave an employee has built up based on their role and work history.
How To Determine Fast Food Industry Award Coverage
Before applying pay rates or entitlements, it’s important to confirm that your business and its employees actually fall under the Fast Food Industry Award.
Coverage depends on your main business activity and the type of work your employees perform.
Identify your business type
This Award applies to organisations (both franchised and independent) whose main activity is running a fast-food outlet, where food or drink is:
- Prepared, sold, and served quickly to customers for takeaway or immediate consumption, or…
- Sold through a drive-through or counter service that focuses on speed and standardised preparation.
Check which employees are covered
The Award generally applies to employees working directly in fast-food service roles—for example, customer-facing staff, food preparation workers, or shift supervisors without full managerial responsibility.
It doesn’t apply to employees who fall under other modern awards or to senior managers and workers hired on a contract basis.
Pro Tip
If your business offers both dine-in and takeaway options, find out which activity is the main part of your operation. The Award covering that activity usually applies to most in-store employees.
Verify with fair work tools
If it’s unclear which Award applies, you can use the Fair Work Award Finder to check coverage based on job duties and business activity.
Fast Food Industry Award: A practical example
Sarah works at a local pizza shop that runs solely as a takeaway and delivery outlet with set menus and quick service.
Because the shop’s main business activity is preparing and selling food for immediate consumption, it’s covered by the Fast Food Industry Award 2020, not the General Retail Industry Award 2020, which applies to supermarkets and retail stores.
Here’s Sarah’s classification and pay breakdown under the Award:
- Classification and employment type: Level 1 casual fast-food employee.
- Ordinary casual rate: $34.76/hour, which is 125% of the adult Level 1 minimum.
- Sunday ordinary rate: $41.72/hour, which is the Level 1 casual composite rate of 150%.
- Public holiday ordinary rate: $69.53/hour, which is the casual composite rate of 250%.
Employer Obligations, Common Mistakes, and Record-Keeping Tips
Employer obligations
Employers must:
- Pay at least the minimum base rate, including applicable penalty and overtime rates.
- Classify employees correctly based on their duties, and update classifications when roles change.
- Provide breaks and leave entitlements in line with the Fast Food Industry Award and the National Employment Standards (NES).
- Ensure staff have access to the current Award, including pay and classification details.
- Give new employees the Fair Work Information Statement, and give casuals the Casual Employment Information Statement at the times required by law.
- Respect the right to disconnect.
- From 1 July 2026, payday super generally requires super contributions at the same time as wages.
- Recognise workplace delegates’ rights under the Award, including reasonable communication with eligible employees and reasonable access to workplace facilities and training where the clause applies.
Common mistakes
Even well-intentioned businesses can make errors. The most frequent include:
- Misclassifying employees, such as by paying Level 2 or 3 workers at Level 1 rates.
- Not updating pay rates every year after Fair Work’s 1 July wage review.
- Using the former casual conversion rule instead of the current NES employee choice pathway.
- Incorrect penalty or overtime calculations, especially for Sundays or public holidays.
- Failing to provide meal breaks during long shifts (5+ hours) breaches the Award and may require payment of the amount owed (back pay) to employees.
Record-keeping and compliance
Accurate and up-to-date records protect both you and your employees.
They also make it easier to resolve disputes or show compliance during a Fair Work audit.
Here are some best practices to follow:
- Issue detailed pay slips within 1 working day of payment.
- Keep records for at least 7 years, including wage rates and hours.
- Regularly check payroll data and compare rates to the current Fast Food Industry Award pay guide.
The Fair Work Ombudsman provides free record-keeping templates to help employers meet their obligations easily.
Resources and Links
For further reading and official resources, visit:
Fast Food Industry Award 2020 (MA000003) – The official Fair Work Commission award outlining pay rates, classifications, and conditions.
Fair Work Information Statement – Summary of employee rights and employer obligations under the National Employment Standards.
Fair Work Ombudsman: Pay and Conditions Tool (PACT) – Tool for calculating base pay, overtime, penalty rates, and allowances under the Award.
FAQs
The Fast Food Industry Award sets the minimum pay rates, allowances, and working conditions for employees in Australia’s fast-food sector, including takeaway and delivery outlets.
From the first full pay period starting on or after 1 July 2026, the adult Level 1 minimum is $27.81/hour or $1,056.80/week for full-time work, with higher rates for senior levels and casuals.
Employees working 5–9 hours must receive one 10-minute paid rest break and one 30–60-minute unpaid meal break per shift.
Disclaimer
The information provided here is a summary only and does not constitute legal advice. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Laws change frequently, and outcomes may vary depending on your business circumstances. We recommend consulting a qualified employment lawyer before making decisions related to workforce management. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.
