Restaurant Industry Award: Pay Rates, Classifications and Obligations

Because minimum pay rates and allowances for the Award increased from 1 July 2025, employers need to update their pay practices to ensure they’re meeting the new requirements.

This guide walks you through who the Award covers, how to classify your team correctly, and the key entitlements you’re required to provide, so you can stay compliant and avoid payroll mistakes.

Award Basics

The Restaurant Industry Award sets the minimum pay rates and working conditions for employees who work in restaurants, cafés, bistros, and similar dining venues across Australia. It covers businesses that mainly prepare and serve food or drinks for customers to eat on the premises or to take away.

The Award ensures your staff are paid fairly and receive the right entitlements, including things like breaks, allowances, overtime rates, penalty rates, and leave. It also explains how pay increases based on an employee’s age, job level, experience, employment type, and classification.

Employees are classified based on the type of work they do. Job duties are grouped into several streams, which are broad work categories (such as service, kitchen, admin, or security). Each stream contains several grades, which describe the specific tasks and skill levels required for different roles.

These grades help determine which classification level an employee falls under for pay purposes. The Award includes an Introductory Level for new employees, followed by Levels 1 through 6, which set the minimum weekly and hourly pay rates.

The Award sits under the Fair Work Act 2009, which sets the national rules for pay, leave, and employment conditions in Australia. It’s reviewed and updated every year by the Fair Work Commission, the independent tribunal responsible for creating and maintaining modern awards. The Fair Work Ombudsman is the government agency that provides guidance, tools, and resources to help businesses understand the Award and comply with it.

Who’s covered under the Restaurant Industry Award?

Covered businesses include:

• Restaurants, bistros, and casual dining venues.
• Cafés and coffee shops that mainly offer dine-in service or table service.
• Tea rooms, coffee lounges, and reception centres.
• Nightclubs that serve meals.
• Roadhouses and diners (operating separately from a petrol station).
• Franchise-style restaurant or café chains.
• Independently owned cafés, restaurants, or small dining venues.

The Award applies to most front-of-house, kitchen, and support roles, such as:

• Waitstaff, food and beverage attendants, hosts, and baristas.
• Bar staff, cashiers, and counter service employees.
• Kitchen hands, dishwashers, food prep assistants, cooks, and chefs.
• Delivery drivers who the restaurant directly employs.
• Supervisors who don’t have full managerial authority.
• Clerical staff, storepersons, security staff, and handypersons working within the restaurant business.

Who isn’t covered under the Restaurant Industry Award?

The Award doesn’t apply to:

• Fast-food outlets covered by the Fast Food Industry Award.
• Hotels, motels, and accommodation businesses (Hospitality Industry (General) Award 2020).
• Registered or licensed clubs (Registered & Licensed Clubs Award).
• Contract catering, in-flight catering, or canteens for schools and hospitals.
• Retail food businesses or supermarket cafés.

Classifications and Streams

Classifications are based on what type of duties someone performs and how they’re employed.

Key streams

Employees under the Restaurant Industry Award fall into 1 of the following streams:

Some streams contain several grades (for example, Food and Beverage Attendant Grades 1–4, Cook Grades 1–5, Clerical Grades 1–3). These grades describe the duties and competency requirements.

For example, consider a Food and Beverage Attendant Grade 1. Their grade outlines the basic duties they’re allowed to perform, like clearing tables, picking up glasses, or helping more experienced staff. That grade then links to the correct classification level under the Award.

Some employees start at an Introductory Level if they’re new to the restaurant industry and don’t yet meet the skill requirements of Level 1.

They can remain at this level for up to 3 months while receiving training and being assessed. After this period, they move to Level 1, unless the employer and employee mutually agree to extend the training period for up to another 3 months.

Employees can move to higher grades only when they regularly perform the duties of those higher grades.

For full details on Restaurant Industry Award classifications, including streams, grades, and the specific duties attached to each role, refer to the Award.

Employment types

Under the Restaurant Industry Award, every employee must be hired as either full-time, part-time, or casual. Each type has different rules for hours, rostering, leave, and minimum shift lengths (explained in the sections below).

Full-time

Full-time employees work 38 ordinary hours per week. They’re ongoing staff and get all standard entitlements, like paid annual leave.

Part-time

Part-time employees work fewer hours than full-time staff, with regular and predictable hours (discussed below). Their agreed hours and availability must be confirmed in writing.

Part-time staff get the same benefits as full-timers, but on a pro-rata basis. This means their leave and other entitlements are adjusted based on the hours they work.

Casual

Casual employees have no guaranteed hours and work as needed, but there are still limits on their ordinary hours (covered later in this guide). They’re paid a 25% casual loading: extra pay that compensates them for not getting entitlements that full-time and part-time employees get (like paid leave). This is calculated as their base rate + 25% of their base rate (or as 125% of their base rate). 

Casual employees can request to convert to permanent (part-time or full-time) employment under the National Employment Standards (NES) if they have a regular work pattern for 12 months with the same employer.

Ordinary Hours 

Under the Restaurant Industry Award, ordinary hours are the usual, agreed working hours before overtime applies.

The Award sets out clear rules on what counts as ordinary hours for different types of employees in restaurants. 

The Award also adds some important conditions about how you must arrange ordinary hours for permanent employees (full-time and part-time).

Daily limits

• Full-time employees can be rostered for no less than 6 and no more than 11.5 ordinary hours in a single day (not counting meal breaks).
• Part-time employees can be rostered for up to 11.5 ordinary hours in a day (not counting meal breaks).
• Casual employees can be rostered for a maximum of 12 hours per day or per shift.

Split shifts

A split shift is when an employee works 2 or more separate blocks of time in the same day, with a long break in between that isn’t a normal meal break (for example, lunch service 10 am–2 pm and dinner service 5:30 pm–9:30 pm, giving a total spread of 11.5 hours).

For split shifts, the “spread of hours” is the total time from the start of the first part of the shift to the end of the last part, including the long break in between. 

This spread can’t be more than 12 hours in total.

Long shifts

An employee can work more than 10 ordinary hours on no more than 8 days in any 4-week cycle, and no more than 3 of those long days can be in a row.

Pay Rates and Entitlements

Under this Modern Award, pay rates and entitlements set the minimum standards for how employees must be paid and what conditions they’re entitled to. 

Minimum base rates

Below are examples of the Restaurant Industry Award pay rates for full-time and part-time employees:

For example, you’d pay a full-time Food and Beverage Attendant Grade 2 (level 2) at least the current minimum rate of $25.85/hour or $982.40/week. 

As another example, a casual employee classified as Level 2 earns the same base rate of $25.85/hour, plus a 25% casual loading of $6.46/hour. This brings their casual rate to $32.31/hour. Across a 20-hour week, this adds up to about $646.

The Award also sets different pay rates for employees under 21 (junior rates). For example, an 18-year-old Level 2 junior gets 70% of the adult Level 2 rate. Once they turn 21, they’re paid the full adult rate for their classification.

For more information, including rates for apprentices and juniors, refer to the official Restaurant Industry Award Pay Guide.

Penalty rates

Penalty rates are higher pay rates that you give employees who work at less convenient times, such as late nights, weekends, or public holidays. These rates apply only to ordinary hours. 

Only 1 penalty applies at a time. If 2 penalties overlap, the employee gets the higher one, not both.

Below is a breakdown of the penalty rates under the Award:

For example, if a Level 2 Food and Beverage Attendant normally earns $25.85/hour, their Sunday rate is 150% of this rate, which equals $38.78/hour.

For a casual Level 2 employee, the Sunday rate is also 150% of the minimum hourly rate (which should include the 25% casual loading). Since the casual rate is $32.31/hour, they’ll earn $48.46/hour. 

Additional rules that apply to public holidays

Full-time & part-time employees working on public holidays are paid for at least 4 hours, even if they work less than those 4 hours.

Casuals are paid for at least 2 hours, even if they work less than those 2 hours.

Instead of being paid 225%, a full-time or part-time employee can agree to:

• Be paid 125%, and
• Take time off equal to the hours worked (either added to annual leave or taken within 28 days).

Overtime rules and rates

Under the Fair Work Restaurant Industry Award, overtime applies when an employee works more than their ordinary hours or outside their agreed roster. These higher rates recognise the extra time, effort, and inconvenience of working beyond normal shifts.

Here are the overtime pay rates:

Let’s say a Level 2 Food and Beverage Attendant normally earns $25.85/hour.

• If they work 2 hours of overtime on a weekday, you’re required to pay them 150% of their minimum hourly rate, which is $38.78/hour.
• If they work additional overtime on top of that on the same day, they get 200%, which is $51.70/hour.

Casual employees get overtime, too. It’s calculated on the minimum hourly rate, not the loaded rate that includes the 25% casual loading.

Refer to the Award for more overtime rules, including breaks after working overtime.

Breaks 

Restaurant Industry Award breaks include unpaid meal breaks (longer breaks for eating) and paid rest breaks (shorter pauses during work). 

Meal and rest breaks

The type of break you’re required to give an employee depends on how long they work in a shift:

Here are some key rules you need to know:

• Breaks should be spaced as evenly as possible across the shift.
• If the employee and employer agree in writing, the unpaid meal break can be taken later within the first 6.5 hours, as long as they make this agreement in the first 5 hours of the shift.
• Employees can’t work more than 5 continuous hours without a meal break unless there’s a valid agreement to delay it.

If an employee isn’t allowed to take their unpaid meal break at the rostered (or agreed) time, the employer must pay an extra 50% of the employee’s ordinary hourly rate for the period from when the break should’ve been taken until they get the break or the shift ends.

If no meal break is provided at all, the 50% extra applies:

• From 6 hours after the shift starts, or
• From 6.5 hours if there was an agreement to take the break later.

Employees also get:

• A 20-minute paid rest break if they work more than 5 continuous hours after their unpaid meal break.
• A 20-minute paid rest break if they work more than 2 hours of overtime after their rostered shift.

For example, if an employee works a 7-hour shift, they must get an extra 30-minute unpaid meal break. If they then work 3 extra hours of overtime, they’re also entitled to a 20-minute paid rest break for the overtime period.

Allowances

Employees may also receive extra payments, known as allowances, to cover work-related costs or special conditions that come up in restaurant work.

Leave entitlements

You’re required to give employees covered by the Restaurant 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 NES and the Award.

For a full breakdown, including excessive leave rules, shutdown periods, leave in advance, and detailed public holiday arrangements, refer to the Award and the NES.

💡 Pro Tip:

You can use the Fair Work Ombudsman Leave Calculator to check how much leave applies to your role.

How To Determine Restaurant Industry Award Classification Level

Once you’ve confirmed that the Restaurant Industry Award applies to your business and employees (as outlined above), you’ll need to place each employee in the right level, which determines their minimum pay.

If you’re unsure whether the Award applies, you can use the Fair Work Award Finder to confirm.

Then, to find the correct level:

• Identify the stream the employee works in (e.g., food and beverage, kitchen/cook, clerical, stores, security, handyperson).
• Match their duties to the grade in that stream (for example, Grade 1 = basic tasks, Grade 2 = more responsibility, cash handling, or experience). You can see each grade definition in Schedule A.
• The grade links to a Level in the Award (Introductory to Level 6), which sets their pay rate. Check Table 3 to map grades to their correct levels.

If an employee regularly performs higher-level duties, they must be paid at the higher level.

Restaurant Industry Award: A practical, real-world example

Raj works full-time at a busy inner-city restaurant that offers full dine-in service, table ordering, plated meals, and a licensed bar. His day-to-day duties include:

• Taking customer orders at the table.
• Serving food and carrying multiple plates.
• Preparing simple drinks and assisting at the bar.
• Using the POS system and handling payments.
• Helping newer staff during peak service.
• Working with minimal supervision during quieter periods.

Because the restaurant’s main activity is dine-in table service rather than quick-service counter or takeaway operations, it falls under the Restaurant Industry Award 2020 (not the Fast Food Award).

Raj is a Grade 2 employee because:

• These tasks match the Award’s Food and Beverage Attendant Grade 2 definition.
• Grade 2 roles require more responsibility, skill, or service duties than Grade 1 employees.
• Grade 2 sits within Restaurant Industry Award Level 2 in the Award’s pay structure.

How Raj is paid under the Award:

• Base rate: $25.85/hour.
• Sunday rate (150%): $38.78/hour.
• Public holiday rate (225%): $58.16/hour.

Employer Obligations and Compliance Tips

Employers covered by the Restaurant Industry Award must make sure every staff member is properly classified, paid correctly, and given all required entitlements. 

To stay compliant:

• Classify employees based on their actual duties, using the correct stream and grade to determine their classification level.
• Update an employee’s classification if their responsibilities grow, for example, moving from Food & Beverage Attendant Grade 1 (Level 1) to Grade 2 (Level 2).
• Pay the correct minimum base rate linked to their level, plus penalty and overtime rates.
• Provide meal and rest breaks on time, and avoid rostering anyone for more than 5 hours without a meal break.
• Pay all relevant allowances separately (split-shift allowance, tool allowance for cooks, meal allowance for overtime, etc.).
• Issue pay slips within 1 working day of payment.
• Keep accurate classification, time, pay, and leave records for 7 years.
• Update rates after Fair Work’s 1 July wage increase each year.

Common mistakes to avoid:

• Misclassifying staff, for example, paying a Food & Beverage Attendant Grade 2 as Grade 1, or paying a cook Grade 3 at Level 2 rates.
• Applying the wrong penalty rules for casual workers, especially Levels 3–6.
• Forgetting to apply the 25% casual loading.
• Missing late-night, weekend, or public holiday penalty rates.
• Not paying overtime when staff work beyond their rostered finish time.
• Ignoring casual conversion rights after 12 months of regular work.

Correct classification and good record-keeping protect both employers and employees. For tools and templates, you can use the Fair Work Ombudsman’s free record-keeping and payroll guides.

Resources and Links

For further reading and official resources, visit:

• Restaurant Industry Award [MA000119]: The official Fair Work Commission Award.
• Fair Work Information Statement (FWIS): A summary of employee rights and employer responsibilities under the NES.
• Annual Leave Cash-Out Agreement (Fair Work Commission): A template employers can use when arranging a lawful leave cash-out agreement with an employee.
• Connecteam: Australia Labor Laws Guide: Practical resource to help you understand key workplace laws and compliance requirements.

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.