As the hospitality sector continues to evolve, understanding the latest wage rates and entitlements under the Restaurant Industry Award is more important than ever. Whether you’re a restaurant owner, HR manager, or frontline hospitality staff, this guide provides a clear, up-to-date overview of your obligations and rights under the latest modern award changes in Australia.
What Is the Restaurant Industry Award [MA000119]?
The Restaurant Industry Award (MA000119) sets the minimum pay rates, penalty rates, overtime rules, and working conditions for employees working in restaurants, cafés, and similar hospitality venues across Australia.
It applies to:
- Full-time, part-time, and casual restaurant employees
- Front-of-house staff, cooks, kitchen hands, baristas, and delivery drivers
- Employers running dine-in restaurants, hotel dining rooms, catering outlets, and more
Note: This Award does not apply to fast food outlets (covered under the Fast Food Industry Award) or pubs and clubs (covered under the Hospitality Industry General Award).
Who Needs to Understand This Award?
- Business owners looking to stay compliant and avoid underpayment risks
- Payroll teams managing complex rosters and casual loading
- HR departments ensuring correct onboarding and classification
- Employees who want to confirm they’re paid fairly
Key Updates to Restaurant Wage Rates in 2025
Here are the base wage rates as of 1 July 2025 (following the Fair Work Commission’s annual wage review):
|
Classification Level |
Full-Time/Part-Time (Hourly) | Casual (Hourly incl. 25% Loading) |
|
Introductory Level |
$24.87 | $31.09 |
|
Level 1 |
$25.67 | $32.09 |
| Level 2 | $27.03 |
$33.79 |
| Level 3 | $28.74 |
$35.93 |
| Level 4 | $30.48 |
$38.10 |
*Check Fair Work Pay Guides for the most recent updates.
Penalty Rates, Overtime, and Breaks
- Weekends: 25% penalty on Saturdays, 50% on Sundays for part-time/full-time workers.
- Public Holidays: 150% penalty for permanent staff.
- Overtime: Paid after 38 hours/week or outside agreed shift span.
- Meal Breaks: 30-minute unpaid meal break after 5 hours. Penalty applies if not given.
Compliance Challenges for Employers
Managing compliance under the Restaurant Industry Award can be tricky due to:
- Complex rostering for casuals and split shifts
- Tracking penalty rates during weekends or late nights
- Handling staff classification correctly
- Ensuring timely and accurate award interpretation
How Workstem Simplifies Restaurant Award Compliance
Simplify award interpretation and payroll processing with Workstem, the all-in-one workforce management & payroll software designed for every industry. Our system supports 122+ modern awards & 34 EAs, including the Restaurant Industry Award 2025, and keeps you up-to-date with changes in wage rates, penalty rates, and overtime rules.
Whether you’re running a small café or managing a multi-site restaurant group, Workstem offers:
- Automated award interpretation
- Real-time wage calculations and timesheet syncing
- Employee self-service app for rosters and payslips
- Seamless integrations with Xero, NetSuite, and more
Choose from our Standard or Advanced plan to suit your business needs, and stay Fair Work compliant with confidence.
Book a free demo with our payroll experts and experience how Workstem can streamline your payroll and workforce operations.
FAQs About the Restaurant Industry Award
Q1: What is the Restaurant Industry Award?
A1: It is a modern award under Fair Work that outlines the minimum wages, entitlements, and conditions for employees working in restaurants, cafés, and similar venues in Australia.
Q2: Who does this award apply to?
A2: It applies to full-time, part-time, and casual employees working in restaurants, hotel dining areas, catering outlets, and some cafés. It excludes fast food and pubs/clubs.
Q3: Has the minimum wage increased in 2025?
A3: Yes. Following the Fair Work Commission’s decision, the base rates under the Restaurant Industry Award have increased from 1 July 2025. Employers must update their payroll accordingly.
Q4: How do I know if I’m paying the correct penalty rates?
A4: Penalty rates depend on the day, time, and classification level. Workstem automatically calculates penalty rates based on the latest award conditions to ensure compliance.
Q5: Can Workstem help with casual employee management?
A5: Absolutely. Workstem supports casual loading, dynamic rosters, and real-time tracking to ensure casual workers are paid correctly and fairly under the award.
Q6: Is Workstem compliant with Fair Work and STP2?
A6: Yes, Workstem is fully compliant with Fair Work obligations and Single Touch Payroll Phase 2 (STP2), ensuring seamless reporting to the ATO.
Read More:
Updated Restaurant Industry Award Pay Rates: What You Need to Know
