If your business sells goods directly to consumers, the General Retail Industry Award 2020 [MA000004] likely applies to you. Understanding its pay rates, classifications, and entitlements is essential for staying compliant.
The Fair Work Commission last updated retail award wages for 2025, which means every employer covered under MA000004 needs to check new pay rates, penalties, and allowances to stay aligned with the rules.
Even small mistakes can lead to back pay issues or compliance action, so getting the details right matters.
This guide walks through the latest entitlements under the Retail Award, including pay rates, overtime, breaks, and leave, along with the key obligations you’re expected to meet as an employer.
Key Takeaways
- The General Retail Industry Award 2020 sets minimum pay rates, working hours, and conditions for Australia’s retail sector, including supermarkets, fashion, pharmacies, and online stores.
- Employers must correctly classify staff, apply the appropriate weekend and public-holiday penalties, and include all allowances, such as meals, uniforms, and travel.
- Employers should regularly review pay rates each July after Fair Work’s wage update, verify employee classifications, and keep accurate payroll records.
Award Basics
The General Retail Industry Award sets minimum pay rates, hours, and working conditions for most businesses that sell goods or services directly to the public, including supermarkets, fashion and specialty outlets, and online retailers.
This Award was originally set out under the Fair Work Act 2009, a key employment law, and is regularly updated by the Fair Work Commission, Australia’s national workplace tribunal. It ensures every retail employee receives fair pay and consistent entitlements (the benefits and conditions they’re legally entitled to).
Whether you apply the Award to specific employees will depend on those employees’ actual duties, not just their job titles.
Employees under the Retail Award are classified across 8 levels based on their skills and duties, with adult rates for workers aged 21+ and junior rates for those under 21.
The Award is broken up into parts (with clauses) and schedules (which contain extra details). We sometimes reference these to help you navigate the Award and direct you to more specific information.
Who’s covered under the Retail Award?
Businesses or jobs involved in selling goods directly to consumers are likely covered. These include:
- Supermarkets, department stores, and variety stores.
- Clothing, footwear, cosmetics, or homeware shops.
- Pharmacies, newsagents, and convenience stores.
- Specialty or online retail stores.
- Store managers, cashiers, visual merchandisers, and sales assistants.
Who isn’t covered under the Retail Award?
The Retail Award doesn’t apply to every role within a retail business, as some roles are covered by other awards. Excluded employees include:
- Café, restaurant, or bar staff (covered by the Hospitality Industry Award 2020).
- Fast food workers (covered by the Fast Food Industry Award 2020).
- Hairdressers, beauty therapists, and pharmacy professionals (covered by their own awards).
- Office and admin staff such as payroll, HR, or accounts (covered by the Clerks—Private Sector Award 2020).
If a role overlaps multiple duties, the award that best reflects the employee’s main or primary duties applies.
Classifications and Levels
Under the General Retail Industry Award Australia, you have to classify employees correctly to determine the minimum pay rate, penalties, and entitlements that apply to their role.
Types of employment
The Retail Award recognises 3 main employment types:
- Full-time employees work an average of 38 ordinary hours per week.
- Part-time employees work regular, agreed-upon hours each week, with the same entitlements as full-timers on a pro-rata basis (this means the benefits they receive are based on how many hours they work).
- Casual employees have no guaranteed hours and can request to be converted to part-time employees after 12 months of regular service.
Retail employee levels
The Retail Award groups employees into 8 classification levels based on their experience, their supervision level, and the complexity of their work. You can find classification definitions in Schedule A of the Award.
These levels directly determine the minimum hourly pay rate.
| Levels | Typical role | Description of skills and responsibilities |
| Level 1 | Sales assistant, cashier, trainee | Performs basic duties such as customer service, operating a register, or restocking shelves under direct supervision. |
| Level 2 | Experienced retail assistant | Works with limited supervision, handles routine customer issues, and may assist in opening or closing procedures. |
| Level 3 | Senior sales assistant or department support | Supervises junior staff, manages basic reports or merchandising tasks, and independently handles store operations during shifts. |
| Level 4 | Department supervisor, visual merchandiser | Oversees a small team or department, coordinates stock, and reports directly to the store manager. |
| Level 5 | Assistant store manager | Manages daily store operations, prepares rosters, handles cash control, and supports the store manager. |
| Level 6 | Store manager (single location) | Responsible for store targets, budgets, staff performance, and compliance with workplace policies. |
| Level 7 | Multi-site or area manager | Oversees multiple stores or departments, implements company strategies, and supervises managers. |
| Level 8 | Senior operations or regional manager | Directs large teams or business units, sets budgets, and ensures performance outcomes across multiple locations. |
Junior employees and apprentices
You’ll classify junior employees (those under 21 years of age) into Levels 1–3, lining up their level with the equivalent adult classification based on the duties they perform.
Apprentices are employees who combine paid work with formal training to build their skills. They aren’t classified into levels. Instead, their pay and progression depend on which year of their apprenticeship they’re in and whether they’ve completed secondary school.
Maintaining accurate classifications
If you’re reviewing or updating classifications:
- Refer to Schedule A for definitions of levels.
- Update records in writing whenever an employee’s responsibilities change, for example, when they take on supervisory tasks or start managing store operations.
- Review all classifications annually in line with Fair Work’s July wage updates to ensure you’re staying compliant.
Pay Rates and Entitlements
The minimum pay rates and conditions set out by the Retail Award apply to all retail employees, including full-time, part-time, casual, junior, and apprentice employees.
These pay and conditions rules work alongside the National Employment Standards (NES), which guarantee minimum rights such as annual leave, public holidays, and notice periods.
Let’s dive into these.
Minimum base rates
Base rates under the Retail Award are the minimum hourly and weekly pay that you must provide for each classification level.
The latest rates took effect from 1 July 2025, and current rates can be found with the Fair Work Pay and Conditions Tool (PACT). Pay guides are updated annually.
| Level | Weekly rate for full-time employees | Hourly rate for full and part-time employees | Hourly rate for casual employees (includes 25% casual loading) |
| Level 1 – Retail Assistant / Cashier | $1,008.90 | $26.55 | $33.19 |
| Level 2 – Experienced Assistant | $1,032.00 | $27.16 | $33.95 |
| Level 3 – Senior Sales Assistant | $1,048.00 | $27.58 | $34.48 |
| Level 4 – Department Supervisor | $1,068.40 | $28.12 | $35.15 |
| Level 5 – Assistant Store Manager | $1,112.30 | $29.27 | $36.59 |
| Level 6 – Store Manager | $1,128.50 | $29.70 | $37.13 |
For the full list of rates and classifications, refer to the General Retail Industry Award pay guide.
Note that casual employees receive a 25% casual loading: an extra payment added to their base rate to compensate them for not receiving paid leave entitlements such as annual leave. This means they get 125% of their regular rate. So a Level 1 employee who’d normally earn $26.55/hour instead earns $33.19. The minimum rates above include that loading.
Junior employees and apprentices
Junior employees
Junior employees earn a percentage of the adult rate based on their age and classification level:
| Age | % of adult rate they earn | Example: Level 1 hourly rate (2025) |
| Under 16 years | 45%–50% | $11.95–$13.28/hour |
| 16 years | 55%–60% | $13.28–$15.93/hour |
| 17 years | 65%–70% | $15.93–$18.59/hour |
| 18 years | 75%–80% | $18.59–$21.24/hour |
| 19 years | 90%–95% | $21.24–$23.90/hour |
| 20 years (employed less than 6 months) | 95% | $23.90/hour |
| 20 years (employed more than 6 months) | 100% (adult rate) | $26.55/hour |
| *Junior rates apply only to employees classified at Levels 1, 2, or 3. | ||
These percentages increase with age until the employee reaches full adult pay when they turn 21.
However, once a 20-year-old has worked more than 6 months with the same employer, they must be paid the full adult rate for their level, even if they aren’t yet 21.
Apprentices
The table below shows the minimum hourly rates for apprentices, which vary depending on whether they’ve completed Year 12 of secondary school and which stage of training they’re in:
| Apprenticeship Year | % of adult rate they earn if they’ve completed year 12 | % of adult rate they earn if they haven’t completed year 12 | Example: Hourly rate (2025) |
| 1st year | 55% | 50% | $14.06–$15.46/hour |
| 2nd year | 65% | 60% | $16.87–$18.28/hour |
| 3rd year | 85% | 75% | $22.49/hour |
| 4th year (if applicable) | 90% | 85% | $25.30/hour |
| *Pay is based on a percentage of the Level 4 Retail Employee rate. | |||
Note: The rates above apply to standard apprentices. Adult apprentices (aged 21+) have different minimum rates. If you employ these workers, check the adult apprentice rates.
In addition to receiving minimum pay, apprentices also:
- Are entitled to paid annual, personal, and public holiday leave.
- Receive the same penalty and overtime rates as adult employees.
- Must be paid for all training hours, even when training takes place off-site.
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Pay rates for trainees (employees completing approved training toward a recognised qualification) are covered under the National Training Wage Schedule.
Penalty rates
Retail often operates beyond standard weekday hours, so penalty rates compensate employees for working weekends, evenings, or public holidays. Employees working during these times receive higher pay, which is calculated as a percentage of their base rate.
| Day/Time worked | % of base rate full-time & part-time employees earn | % of base rate casual employees earn (including 25% loading) |
| Monday–Friday (after 6:00 p.m) | 125% | 150% |
| Saturday | 125% | 150% |
| Sunday | 150% | 175% |
| Public holiday | 225% | 250% |
For example, A Level 1 casual working on Christmas Day earns $66.38/hour on that day if their regular weekday rate is $33.19/hour.
Shift workers (which the Award defines as those working shifts that start at or after 6 p.m. and end before 5 a.m.) and baking production staff also receive penalty rates. However, rates vary depending on the span of hours worked. See Clause 25 to learn more about these rates.
Overtime rules and rates
You’re also required to pay employees extra for working overtime. Overtime applies when employees work:
- More than 38 hours per week,
- Outside their rostered hours (for part-timers), or
- Over 9 hours in 1 day, unless otherwise agreed.
This extra pay is calculated as a percentage of their base pay:
| Day they’re working overtime | First 3 hours of overtime | All hours beyond the first 3 hours of overtime |
| Monday–Saturday | 150% | 200% |
| Sunday | 200% | 200% |
| Public Holiday | 250% | 250% |
| *For casual employees, these overtime rates should include the 25% casual loading. | ||
For example, a Level 3 retail employee earning $27.58/hour who works 2 extra hours on a weekday should be paid $41.37/hour for those 2 hours.
Did You Know?
Employees can choose to take time off (called “time off in lieu”) instead of overtime pay, but it must be agreed to in writing, recorded correctly, and taken within 6 months.
Breaks and allowances
Meal and rest breaks
Every retail employee must receive rest and meal breaks during their shifts. These rules apply to both permanent and casual staff.
Here are the breaks employees must receive according to how long they work:
| Hours worked | Break entitlement |
| More than 4 hours but less than 5 | 1 paid rest break (10 minutes). |
| More than 5 but less than 7 | 1 paid rest break (10 minutes) and 1 unpaid meal break (30–60 minutes). |
| More than 7 hours but less than 10 | 2 paid rest breaks (each 10 minutes: 1 before and 1 after meal break) and 1 unpaid meal break (30–60 mins). |
| 10+ hours | 2 paid rest breaks (10 minutes each) and 2 unpaid meal breaks (30-60 mins each). |
Common allowances
Allowances provide additional payments for specific situations, responsibilities, or expenses. These rates are reviewed each year with the annual wage increase.
| Allowance type | When it applies | Allowance + description |
| Meal allowance | After working over 1 hour of overtime without 24 hours’ notice. | $23.59/occasion. If overtime exceeds 4 hours, an additional $21.39 applies. |
| Special clothing/uniform | When required to wear a uniform not supplied by the employer. | $6.25/week for full-time employees or $1.25/shift for part-time or casual employees. |
| Excess travelling costs | When starting/finishing at a different location, it incurs extra travel. | Reimbursed for actual additional fares. |
| Travelling time reimbursement | When travel adds time to the usual commute. | Paid at ordinary hourly rate up to 38 hours/week. |
| Motor vehicle allowance | When using one’s own car for work duties (not commuting). | $0.95/km. |
| Transport reimbursement (late work) | For non-shift workers starting before 7 a.m. or finishing after 10 p.m., with no public transport available. | The employer covers the full cost of transportation home. |
| First aid allowance | For employees who are appointed first aid officers with current qualifications. | $13.89/week (pro-rata). |
| Liquor licence / RSA allowance | For employees who must hold an RSA or liquor licence for the role. | Reimbursed for licence or renewal fee. |
| Recall allowance | When employees are called back to work after leaving for the day. | Minimum 3 hours at overtime rates, including travel time. |
All allowances must appear separately on payslips and not in hourly rates.
Leave entitlements
Under the Retail Award and the NES, you must give employees leave for various reasons.
Here are some of the types of leave your employees may be entitled to.
Annual leave
Retail employees may be entitled to time off each year to use as they please.
- Full-time employees get 4 weeks of paid leave per year.
- Shift workers get 5 weeks.
- Leave includes 17.5% leave loading. Leave loading is extra pay employees get while on annual leave, which makes up for lost penalty or overtime rates they might have received had they not taken the time off. However, if an employee would’ve earned more from weekend penalties during that period, they would receive the higher amount instead.
- Employees may cash out part of their annual leave by written agreement, provided that at least 1 week of annual leave remains accrued.
Personal / carer’s leave
Employees can take personal or carer’s leave when they’re unwell or need to care for an immediate family or household member who’s sick or injured.
- Full-time employees receive 10 days of paid leave per year (pro-rata for part-time staff), and unused leave carries forward each year.
- Casuals are entitled to 2 days of unpaid carer’s leave per occasion.
Compassionate leave
Employees can take compassionate leave in the event of a close family member’s death or serious illness.
- Full-time or part-time employees receive 2 days of paid leave per occasion.
- Casuals receive 2 days’ unpaid leave.
Family and domestic violence leave
Family and domestic violence leave allows an employee to take time off to deal with the impact of family or domestic violence, such as attending court hearings, making safety arrangements, or accessing support services.
All employees, including casuals, are entitled to 10 days of paid family and domestic violence leave per year. This must be available in full from the start of their employment. This is part of the NES and applies nationwide.
Public holidays
You have to allow employees to take public holidays off without losing pay if they’d normally work that day.
How To Determine Retail Award Coverage
The Retail Award applies to businesses that sell goods directly to the public, both in-store or online. Whether individual employees are covered depends on what they actually do.
Here’s how to determine whether your business and employees are covered.
Identify your business type
If your business primarily sells products to consumers, such as supermarkets, department stores, clothing and footwear retailers, homeware shops, pharmacies, or e-commerce stores, it likely falls under the Retail Award. Service-based operations like cafés, salons, or offices are usually covered by different awards.
Match roles to the right award
Consider your employees’ primary duties. Roles like sales assistants, cashiers, supervisors, and store managers are covered by the Retail Award, while administrative or accounting staff fall under the Clerks—Private Sector Award 2020. Staff running in-store cafés or food counters are covered by the Hospitality Industry Award 2020.
Verify with Fair Work tools
To confirm coverage, use Fair Work’s Award Finder. Enter specific employee duties and business type details into the tool to get an accurate classification. Regularly check classifications to ensure each employee is correctly classified and paid under the right award.
Retail Award: A practical example
Ella is a Level 2 part-time retail assistant at a homeware store in Brisbane, so she earns $27.16/hour.
One weekend, she works 8 hours on Saturday and 5 hours on Sunday. She earns 125% on Saturday ($33.95/hour) and 150% on Sunday ($40.74/hour), totalling $475.30 for the weekend.
That Sunday, Ella stays an extra hour without 24 hours’ notice. She receives a $21.48 meal allowance, bringing her total pay to $496.78.
Employer Obligations, Common Mistakes, and Record-Keeping Tips
Under the modern award for the retail industry, employers must ensure every employee is correctly classified, accurately paid, and provided with all lawful entitlements set out in the Award and the NES.
To do this:
- Apply penalty rates, casual loadings, overtime, and allowances correctly.
- Provide the required breaks and leave.
- Supply itemised payslips and keep accurate records for every pay period.
Common mistakes include:
- Misclassification: Paying all staff the same rate regardless of duties or level.
- Incorrect casual loading: Failing to include the 25% loading for casual employees.
- Missing penalty rates: Overlooking weekend or public holiday loadings.
- Skipping allowances: Forgetting entitlements such as the meal allowance.
- Unrecorded TOIL: Time off in lieu of overtime must be agreed to in writing and used within 6 months.
You’re required to keep clear, legible time and wage records for at least 7 years, including hours worked, breaks, pay rates, and leave balances.
Resources and Links
For accurate and up-to-date information on pay, conditions, and compliance, refer to these official resources:
- General Retail Industry Award 2020: Access the full Fair Work document outlining pay rates, classifications, and employment conditions.
- Fair Work Information Statement: Provide this to all new employees.
- Modern Awards Pay Database: Check detailed classification and wage information.
- Fair Work Award Finder: Confirm which modern award applies to each employee.
- Connecteam’s Guide to Labour Laws in Australia: Learn more about key employment laws.
As of 1 July 2025, the base rate for a Level 1 retail employee is $26.55/hour or $1,008.90/week for full-time staff. Always check Fair Work’s Pay Guides for updates.
Employees who work 4–5 hours receive one 10-minute paid rest break. Those working more than 5 hours must receive at least a 30–60-minute unpaid meal break, plus an extra paid rest break on longer shifts. No employee can work more than 5 consecutive hours without a meal break.
A Level 1 retail employee is an entry-level worker who performs basic duties, such as customer service, cash handling, and shelf stocking, under supervision.
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.