Restaurant Industry Award pay rates, allowances, and overtime
The Restaurant Industry Award 2020 regulates the employment terms for those working in the restaurant sector, ensuring they’re paid fairly and work under appropriate conditions. This award covers a wide range of positions within the restaurant industry, setting essential standards for these workers.
This article examines the principal features of the Restaurant Industry Award, such as minimum base pay rates, payment procedures, various allowances, superannuation, overtime, penalty rates, leave entitlements, and public holidays. Being knowledgeable about these components is key to maintaining compliance and promoting fairness in the workplace.
Note: The information provided in this article is accurate as of 04/07/2024. As award conditions and rates are subject to change, please refer to the latest version of the Restaurant Industry Award 2020 for the most current information.
Restaurant Industry Award minimum pay rates
Understanding the minimum pay rates is a good first step to ensuring fair compensation. The table below provides a comprehensive summary of the minimum rates applicable under the Restaurant Industry Award, covering various categories of restaurant employees.
For full-time employees, the minimum weekly rate applies, while for part-time employees, the minimum hourly rate applies. For each hour worked, employers must pay casual employees a loading of 25% on top of the minimum hourly rate displayed in the table below.
Category
Description
Rates/details
Example
Adult employees
Employees aged 21
and over
Introductory Level: $891.50/week ($23.46/hour)
Level 1: $915.90/week ($24.10/hour)
Level 2: $949.20/week ($24.98/hour)
Level 3: $980.40/week ($25.80/hour)
Level 4: $1032.30/week ($27.17/hour)
Level 5:
$1097.10/week ($28.87/hour)
Level 6: $1126.30/week ($29.64/hour)
A 27-year-old handyperson will be paid $980.40 per week or $25.80 per hour.
Junior employees
Employees aged under 21
Under 17: 50% of adult employee rate
17 years: 60% of adult employee rate
18 years: 70% of adult employee rate
19 years: 85% of adult employee rate
20 years: 100% of adult employee rate
An 18-year-old grade 1 kitchen attendant will be paid $641.10/week ($16.87/hour).
Note, junior rates must be rounded to the nearest $0.10: if the amount of cents is $0.05 or more, it is rounded up to the next $0.10; if the amount of cents is $0.04 or less, it is rounded down to the previous $0.10.
Junior apprentices (cooking trade)
Apprentices in the cooking trade under 21
1st year: 55% of Level 4 rate
2nd year: 65% of Level 4 rate
3rd year: 80% of Level 4 rate
4th year: 95% of Level 4 rate
A first-year junior cooking apprentice earns 55% of the Level 4 rate, which is $547.25 per week or $14.94 per hour.
Apprentices in the cooking trade who achieve proficiency in their schooling will receive proficiency pay, meaning they’re paid the standard rate for the latter part of their fourth year: if proficiency is attained once, they get the standard rate for the last three months; if attained twice, they get it for the last six months; and if attained three times, they receive the standard rate for the entire fourth year.
Adult apprentices (cooking trade)
Apprentices in the cooking trade aged 21 and over
1st year: 80% of Level 4 or relevant apprentice year rate
2nd year onwards: lowest adult classification rate or relevant junior apprentice rate, whichever is higher
A 1st year adult apprentice will be paid 80% of the Level 4 rate, which is $825.84 per week or $21.74 per hour.
Higher duties
For employees who perform duties of a classification higher than their ordinary classification
For less than two hours: An employer must pay an employee the minimum hourly rate for that higher classification for the time during which those duties were performed.
For more than two hours: An employer must pay an employee the minimum hourly rate for that higher classification for the whole shift.
A grade 1 food and beverage attendant performing Level 3 duties for two hours will be paid the Level 3 rate of $25.80 for those two hours.
Supported wage system
Employees with a disability eligible for a supported wage
Minimum amount payable is determined by assessed capacity and relevant award pay rates
An employee with a disability assessed at 60% capacity will be paid 60% of the relevant minimum rate for their classification.
National training wage
Employees undertaking a traineeship
Rates depend on training package, qualification level, and year of training
A grade 1 food and beverage attendant performing Level 3 duties for two hours will be paid the Level 3 rate of $25.80 for those two hours.
Restaurant Award payment of wages
The Restaurant Industry Award outlines specific guidelines for how wages should be paid to employees, including the determination of pay periods, acceptable payment methods, and protocols for handling payments on termination. Understanding these provisions helps both employers and employees manage their financial expectations and obligations effectively.
- Pay period: Employers can choose weekly or fortnightly pay periods, with the option to agree on monthly payments.
- Pay day: Wages can be paid on any day except Friday, Saturday, or Sunday, unless agreed otherwise due to public holidays.
- Method of payment: Wages can be paid by cash, cheque, or electronic funds transfer.
- Day off on payday: Employees paid by cash or cheque can opt to receive their payment on their last working day before a rostered day off.
- Termination payments: Employers must pay employees within seven days of termination, covering all wages and entitlements due. Casual employees are paid at the end of their last engagement.
- Annualised wage agreements: Employers and full-time employees can agree on an annualised wage that’s at least 25% higher than the minimum rate. The agreement must detail the wage amount, covered award provisions, and limits on hours worked.
- Review of annualised wage: Employers must review the annualised wage every 12 months to ensure the employee isn’t disadvantaged compared to the award entitlements.
Restaurant Industry Award allowances
The Restaurant Industry Award specifies various allowances to ensure employees are adequately reimbursed for additional expenses they may incur while performing their job duties. The following are the primary allowances available under this award:
Allowance type
Description
Amount/details
Meal allowance
For employees required to work overtime without prior notice
$16.31 for a meal if working overtime for more than two hours without being notified the previous day.
Split shift allowance
For employees working a broken shift
$5.16 for each separate work period of two hours or more.
Tool and equipment allowance
For cooks or apprentice cooks using their own tools
$2.03 per day, up to $9.94 per week, if not receiving a tool allowance.
Reimbursement for purchasing required tools not provided by the employer.
Special clothing allowance
For employees required to wear special clothing (excluding shoes, socks, hosiery, black and white attire)
Reimbursement for the cost of purchasing required special clothing not provided by the employer.
Laundry allowance for special clothing if not laundered by the employer.
Allowance for distance work
For employees working away from their employer’s workplace
Payment at the minimum hourly rate for travel time.
Reimbursement for transport costs if working 80 km or more away from their usual place of work.
Restaurant Award superannuation
Below is a summary of the key points related to superannuation under the Restaurant Industry Award:
- Employee eligibility: Under the NES, employees are eligible for superannuation contributions if they earn $450 or more (before tax) in a calendar month and are over 18 years old. Employees under 18 are eligible if they work more than 30 hours per week.
- Employer contributions: Employers must contribute to a superannuation fund to avoid the superannuation guarantee charge. The current superannuation guarantee rate is 11.5% of an employee's ordinary time earnings (OTE).
- Fund selection: Employees can choose their superannuation fund. If no choice is made:
- Employers must check with the ATO for a stapled fund and contribute to it.
- If there is no chosen or stapled fund, contributions should be made to a nominated default fund in the award, provided it can accept contributions.
- Voluntary contributions: Employees can make additional voluntary contributions to their superannuation fund from their after-tax income. These contributions are separate from the compulsory employer contributions and can help increase retirement savings. Employees should inform their employer if they wish to make voluntary contributions through salary sacrifice arrangements.
For accurate information, always check the Award for updates along with the Fair Work Commission’s super guarantee guidelines.
Restaurant Industry Award overtime and penalty rates
Overtime and penalty rates ensure fair compensation for employees working beyond their regular hours. The Restaurant Industry Award outlines specific conditions and rates for overtime. Note, overtime worked on a given day is calculated separately from overtime worked on other days.
Conditions for overtime
- Full-time employees: Overtime rates apply for any work done outside the standard hours of 6 AM to midnight, Monday to Sunday.
- Part-time employees: Overtime rates apply when they work more than their agreed-upon hours or outside their usual roster.
- Casual employees: Overtime rates apply when they work more than 38 hours per week or 12 hours per day.
- Rostered days off: Overtime rates apply for work done on a rostered day off, with a minimum payment for four hours of work, unless it’s part of a normal roster starting the day before.
It’s also important to recognise that employees who finish overtime and are scheduled to start their next shift in less than eight hours can delay their start time until they’ve had an eight-hour break without losing pay for missed ordinary hours. If an eight-hour break isn’t provided, the employer must continue to pay the overtime rate until the employee gets a break of at least eight hours.
Overtime rates
Hours of overtime worked per day
Overtime rate
Monday to Friday—first two hours
150% of minimum hourly rate
Monday to Friday—after two hours
200% of minimum hourly rate
Saturday—first two hours
175% of minimum hourly rate
Saturday—after two hours
200% of minimum hourly rate
Sunday—all time worked
200% of minimum hourly rate
Rostered day off – all time worked
200% of minimum hourly rate
Public holiday—all day
250% of minimum hourly rate
Example
Jackie is a full-time cook classified as Level 3 with a regular hourly rate of $25.80 who works a standard 38-hour week. One week, she works an additional eight hours beyond her regular hours, with three hours of overtime on Wednesday, two hours on Saturday, and three hours on Sunday.
- First three hours of overtime on Wednesday: 3 hours x $25.80 x 1.5 = $116.10
- First two hours of overtime on Saturday: 2 hours x $25.80 x 1.75 = $90.30
- Three hours of overtime on Sunday: 3 hours x $25.80 x 2 = $154.80
Total overtime pay: $116.10 + $90.30 + $154.80 = $361.20
Time off instead of payment for overtime
Under the Restaurant Award, employees can take time off instead of receiving overtime pay if both parties agree in writing. Here’s a simplified overview:
- Agreement: Employee and employer must agree in writing.
- Equivalent time: Time off matches the overtime pay (e.g., two hours at time-and-a-half equals three hours off).
- Timing: Time off must be taken within six months.
- Request for pay: Employee can request pay for overtime anytime, which must be paid in the next pay period.
- Unused time: If not taken within six months, overtime pay must be provided.
- No pressure: Employer cannot pressure the employee to choose time off.
- Termination: Unused time off must be paid out if employment ends.
Penalty rates
Penalty rates are additional pay rates applied for work done at specific times or on particular days, outside of regular working hours that don’t qualify for overtime pay. The Restaurant Industry Award specifies these rates to ensure employees are compensated fairly for working during less desirable hours.
Conditions for penalty rates
- Full-time and part-time employees: Penalty rates apply as a percentage of the minimum hourly rate, with an extra amount for work between 10.00 PM and 6.00 AM from Monday to Friday.
- Casual employees (levels 1 and 2): Penalty rates apply as a percentage of the minimum hourly rate, with an additional amount for work between 10.00 PM and 6.00 AM from Monday to Friday.
- Casual employees (levels 3 to 6): Higher penalty rates apply as a percentage of the minimum hourly rate, plus an extra amount for work between 10.00 PM and 6.00 AM from Monday to Friday.
Time of ordinary hours worked
Full-time and part-time employees (% of minimum hourly rate)
Casual employees – introductory to level 2 (% of minimum hourly rate)
Casual employees – Level 3 to Level 6 (% of minimum hourly rate)
Monday to Friday – 6.00 AM to 10.00 PM
100% of minimum hourly rate
125% of minimum hourly rate
125% of minimum hourly rate
Monday to Friday – 10.00 PM to midnight
100% of minimum hourly rate plus $2.72 per hour or part of an hour
125% of minimum hourly rate plus $2.72 per hour or part of an hour
125% of minimum hourly rate plus $2.72 per hour or part of an hour
Monday to Friday – midnight to 6.00 AM
100% of minimum hourly rate plus $4.08 per hour or part of an hour
125% of minimum hourly rate plus $4.08 per hour or part of an hour
125% of minimum hourly rate plus $4.08 per hour or part of an hour
Saturday
125% of minimum hourly rate
150% of minimum hourly rate
150% of minimum hourly rate
Sunday
150% of minimum hourly rate
150% of minimum hourly rate
175% of minimum hourly rate
Public holiday
225% of minimum hourly rate
250% of minimum hourly rate
Does not bear an economic risk
Restaurant Award leave and public holidays
Leave entitlements are a fundamental part of employee benefits under the Restaurant Industry Award. This section explains the various leave options available to employees, such as annual leave, personal/carer’s leave, compassionate leave, parental leave, community service leave, and leave for family and domestic violence.
Annual leave
Clause
Details
Example
Annual leave entitlement
Full-time employees are entitled to four weeks of annual leave per year of service. Part-time employees accrue annual leave on a pro-rata basis.
A full-time employee working 38 hours a week is entitled to four weeks of annual leave per year.
A part-time worker with a 19 hour week earns four weeks of leave paid at 19 hours per week.
Payment for period of annual leave
Employees must be paid an amount equal to their regular wages for the period of leave, including a 17.5% loading.
If an employee's weekly wage is $1,500, they will receive $1,500 for each week of annual leave taken.
Annual leave loading
Employees receive a 17.5% loading on their wages during annual leave.
Alex takes two weeks of annual leave. His regular weekly wage is $1,500. He receives an additional 17.5% loading: $1,500 x 2 weeks x 17.5% = $525.
Shutdown period
Employers may temporarily shut down operations, requiring employees to take paid annual leave.
Employees must be given 28 days' written notice.
A company plans a shutdown for the first week of March. They notify employees on 1st February. Employees must take paid annual leave during this period or, if they don’t have enough leave, can agree to take leave without pay.
Leave in advance
Employers and employees can agree in writing for the employee to take annual leave before it’s accrued. The agreement must specify the amount of leave and the start date, and be signed by both parties.
Jaqueline and her employer agree that she’ll take one week of annual leave in advance. They sign an agreement stating the leave will begin on 1st August.
Cashing out annual leave
Employees can cash out annual leave if there is a written agreement with the employer.
They must retain at least four weeks of accrued leave.
A maximum of two weeks can be cashed out in a 12-month period.
The agreement must state the amount cashed out and payment details.
Does not bear an economic risk
Excessive leave accruals
More than eight weeks of accrued leave is considered excessive.
Employers and employees should discuss and agree on reducing excessive leave.
Employers can direct employees to take leave if no agreement is reached.
Employees can request to take leave if they have excessive accruals and the employer hasn't provided a direction.
Generally works for their employer exclusively
Other types of leave
The following leave entitlements are aligned with the NES, providing employees with necessary support in various situations:
- Personal/carer’s leave: Full-time employees are entitled to 10 days of paid personal/carer's leave per year. This can be used for personal illness or to care for a sick family member. Part-time employees earn this leave on a proportional basis.
- Compassionate leave: Employees are entitled to two days of compassionate leave for each occasion when a member of their immediate family or household dies or suffers a life-threatening illness or injury.
- Parental leave: Eligible employees can take up to 12 months of unpaid parental leave for the birth or adoption of a child. They can also request an additional 12 months, which may be refused only on reasonable business grounds.
- Community service leave: Employees can take leave for eligible community service activities, such as voluntary emergency management activities or jury duty. This leave is unpaid, except for jury duty, where make-up pay may be provided.
- Family and domestic violence leave: Employees are entitled to 10 days of paid family and domestic violence leave each year. This leave can be used for activities such as seeking medical attention, obtaining services from a support organisation, or attending court hearings.
Public holidays
Public holidays give employees a valuable break from their usual work duties and are a vital component of employee benefits under the Restaurant Industry Award. Here's an overview of how public holidays are handled according to the award and the NES:
Clause
Details
General entitlement
According to the NES, employees (excluding casuals) are entitled to a paid day off on a public holiday.
Reasonable refusal
Employers can request an employee to work on a public holiday if the request is reasonable. Employees have the right to refuse if the request is unreasonable or if their refusal is reasonable.
Substituting a public holiday
Employers and employees can mutually agree to substitute another day for a public holiday.
Substituting a part-day public holiday
Employers and employees can mutually agree to substitute another part-day for a part-day that would otherwise be a public holiday.
Penalty rates for work on public holidays
Any work performed on a public holiday must be compensated at the penalty rates specified in the award.
Recognised public holidays
Public holidays recognised under the NES include New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Queen’s Birthday, Christmas Day, and Boxing Day, among others.
Additional public holidays
States and territories can declare additional public holidays, which must be observed by employers.
Substitute holidays
If a public holiday falls on a weekend, a substitute public holiday is typically declared, often the following Monday.
Additional public holiday arrangements for full-time employees
If a full-time employee's rostered day off falls on a public holiday, the employer must pay an extra day's pay, give an alternative day off within 28 days, or grant an additional day's annual leave.
Restaurant Industry Award payment management tips
Navigating payments and entitlements under the Restaurant Industry Award can be intricate. Here are some practical strategies to ensure adherence to minimum wage, wage payments, overtime, penalty rates, leave, superannuation, and other entitlements:
- Stay current with award rates: Regularly review updates on minimum wages, overtime, and penalty rates as specified in the award, as these can be revised annually.
- Implement reliable payroll software: Use robust payroll software to automate calculations for wages, overtime, penalty rates, and superannuation, minimising errors and ensuring timely payments.
- Maintain comprehensive records: Keep detailed records of all employee payments, including wages, overtime, penalty rates, and leave entitlements to ensure compliance and address any disputes.
- Conduct regular payroll audits: Periodically audit your payroll system to ensure it complies with the latest award requirements.
- Document all employee agreements: Ensure all agreements related to annual leave (including leave in advance and cashing out leave) and overtime (including time off in lieu) are documented and signed by both employer and employee.
- Provide thorough training and support: Educate your HR and payroll staff on the specifics of the Restaurant Industry Award to manage payments and entitlements accurately.
- Consult with experts: Regularly seek advice from industrial relations experts or legal advisors to stay updated on changes in the award or employment laws.
- Efficiently manage leave: Track employee leave balances accurately, including annual leave, personal/carer's leave, compassionate leave, and other entitlements. Ensure employees are informed about their leave balances and entitlements.
- Ensure superannuation compliance: Make sure superannuation contributions are accurately calculated based on ordinary time earnings (OTE) and paid on time. Utilise payroll software to automate these calculations and payments.
- Communicate transparently with employees: Maintain open communication with employees about their pay, entitlements, and any changes to award conditions to build trust and prevent misunderstandings.
- Stay informed on NES guidelines: Keep updated with the NES, which provide foundational guidelines that interact with the provisions of the Restaurant Industry Award.
Restaurant Award nuances
Understanding the intricacies of the Restaurant Industry Award 2020 is essential for employers to ensure compliance and avoid potential pitfalls. Here are some key nuances that might catch employers out:
- Rounding of junior rates: Junior rates must be rounded to the nearest $0.10. If the amount of cents is $0.05 or more, it is rounded up to the next $0.10. If the amount of cents is $0.04 or less, it is rounded down to the previous $0.10.
Impact: This rounding rule can easily be overlooked, leading to potential underpayments or overpayments. Ensuring accurate calculations helps maintain compliance and prevent disputes.
- Overtime for part-time and casual employees: For part-time employees, overtime applies when they work more than their agreed-upon hours or outside their usual roster. For casual employees, overtime rates kick in when they work more than 38 hours per week or 12 hours per day.
Impact: Accurately tracking hours and ensuring correct overtime rates are applied is critical. Mismanagement can result in significant underpayments or overpayments, leading to compliance issues and financial losses.
- Late night penalty rates: Employees working between 10 PM and 6 AM receive a penalty rate in addition to their base pay. This applies to both full-time and casual employees but varies slightly depending on their classification.
Impact: Employers often overlook or miscalculate these penalty rates, leading to payroll inaccuracies and potential disputes with employees.
Simplifying Restaurant Industry Award pay, overtime and superannuation compliance with Rippling
Handling payroll, overtime, superannuation, and annual leave in accordance with modern awards can be challenging. Rippling's comprehensive platform simplifies these tasks, ensuring precision, compliance, and ease. Key features include:
- Accurate payroll calculations: Automatically calculate award pay rates, including penalty rates, allowances and overtime.
- Overtime management: Track and manage overtime hours according to award requirements.
- Superannuation compliance: Ensure correct calculation, reporting and payment of superannuation contributions.
- Integrated payroll systems: Seamlessly integrate with existing payroll systems.
- Real-time updates: Receive updates on changes to pay rates and superannuation rules for various awards.
With Rippling, you can do more than just meet award compliance requirements; you can exceed them. Take the tour or contact us today!
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
