As the hospitality industry continues to evolve, understanding the latest regulations, awards, and pay rates is crucial for business owners and employees alike. The Hospitality Industry Award 2025 sets fundamental standards for wages, penalty rates, and working conditions in the hotel, café, and restaurant sectors across Australia. In this comprehensive guide, we will explore key aspects of the award, including minimum wages, penalty rates, and casual loading, to ensure you are well-informed and compliant.
What is the Hospitality Industry Award 2025?
The Hospitality Industry Award 2025 governs a wide range of workplaces, including hotels, cafés, and restaurants. This award is designed to ensure fair pay and conditions for employees while providing a clear framework for employers. The award details various classifications of employment and the corresponding pay rates, including minimum wages, casual loading (25%), and penalty rates for overtime and weekend work.
Minimum Wages Under the Hospitality Award 2025
Minimum wage rates are pivotal in maintaining the integrity of the hospitality industry. As of 2025, the following are the key minimum wage rates classified under the Hospitality Industry Award:
- Full-time Employees: The base rate for full-time employees varies depending on their classification within the award, ranging from entry-level positions to managerial roles.
- Part-time Employees: Similar to full-time employees, part-timers are entitled to minimum wage rates proportional to their hours worked, often benefiting from prorated entitlements.
- Casual Employees: Casual staff receive a casual loading of 25% on top of the base hourly rate to compensate for their lack of job security and benefits.
It’s crucial for both employers and employees to stay updated on these rates, as they can change with annual reviews by the Fair Work Commission.
Penalty Rates (2025 Updates)
| Shift Type | Weekday Rate | Saturday | Sunday | Public Holiday |
| Day Shift | 100% | 125% | 150% | 250% |
| Evening Shift (After 7 PM) | 115% | 140% | 165% | 265% |
Note: Rates vary for part-time vs. casual employees.
Casual Loading & Overtime Rules
Casual loading remains at 25% (no changes in 2025).
Overtime thresholds:
- 38 hours/week (full-time)
- 10 hours/day (for shifts exceeding ordinary hours).
How Workstem Helps Hospitality Industry Businesses
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 Hospitality Industry Award 2025, and keeps you up-to-date with changes in wage rates, penalty rates, and overtime rules.
Managing payroll under the Hospitality Industry Award 2025 can be complex. Workstem’s workforce management software ensures:
- Accurate award interpretation
- Automated penalty rates & overtime calculations
- Compliant payslips & record-keeping
- 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 Hospitality Industry Award 2025
Q1: What is the Hospitality Industry Award 2025?
A1: The Hospitality Industry (General) Award 2025 (MA000009) sets minimum pay rates, penalty rates, and employment conditions for workers in hotels, restaurants, cafés, pubs, and clubs across Australia. It’s updated annually by the Fair Work Commission.
Q2: What are the key changes in the 2025 Award?
A2: Minimum wage increase: ~3.5% (projected) for full-time, part-time, and casual employees;penalty rates: Unchanged for weekends/public holidays, but base rates rise;casual loading: Remains at 25%.
Q3: Does the Award apply to casual workers?
A3: Yes. Casual employees receive: base rate + 25% loading (e.g., $24.05 + $6.01 = $30.06/hour); additional penalty rates for weekends/nights.
Q4: Are breaks and overtime included?
A4: Breaks: 10-minute paid rest breaks per 4-hour shift; overtime: Paid after 38 hours/week (full-time) or 10 hours/day.
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：
Hospitality Industry (General) Award Guide [MA000009]
Updated Hospitality Award Rates: What You Need to Know
Restaurant Award vs Hospitality Award: What’s the Difference?
