As we approach the significant updates laid out in the Fast Food Award 2025, it’s essential for employees and employers in the fast food industry to understand the implications of these changes. This essential guide will break down what you need to know about the new wage rates, penalty rates, and working conditions coming into effect on July 1, 2025.
What is Australia’s Fair Work Fast Food Award(MA000003)?
The Fast Food Award 2025 governs the employment terms and conditions for workers in the fast food industry across Australia. It outlines wage rates, work hours, overtime pay, rosters, and other important aspects to ensure fair treatment of employees. The Fair Work Commission regularly reviews and updates these regulations to reflect current industry standards and cost of living adjustments.
What Changes Can You Expect?
Minimum Wages and Wage Rates
The most anticipated change is the increase in minimum wage rates set to take effect on July 1, 2025. The Fair Work Commission has announced a 3.5% wage increase for employees covered under the Fast Food Award. This adjustment is crucial for maintaining fair compensation within the industry, particularly after a noted 22% rise in underpayment cases in 2024.
Penalty Rates
In addition to wage increases, employees should familiarize themselves with the updated penalty rates. These rates apply to work conducted during evenings, weekends, and public holidays, ensuring that workers are fairly compensated for unsociable hours. Staying informed on these rates can lead to better financial planning for employees.
Working Conditions
The updated Fast Food Award will also introduce changes to working conditions, including break times, overtime rules, and leave entitlements. Familiarizing yourself with these amendments can enhance your workplace experience and ensure compliance with the new regulations.
*For detailed wage rates, you can refer to resources like Fast Food Industry Award
Who Do These Changes Apply To?
These changes predominantly affect employees working at major fast food chains like McDonald’s and KFC, as well as independent fast food outlets. Approximately 85% of employees in the industry will be covered by the updated Fast Food Award, making it crucial for both staff and management to stay informed.As the fast food industry prepares for these crucial changes in 2025, it’s vital for McDonald’s and KFC workers, as well as others in the sector, to remain informed. Not only will this knowledge empower you in your workplace, but it will also ensure that you receive fair compensation and work conditions moving forward.
How Workstem Helps Fast Food 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 Fast Food Award 2025, and keeps you up-to-date with changes in wage rates, penalty rates, and overtime rules.
Managing payroll under the Fast Food 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 Fast Food Industry Award 2025
Q1: What is the Fast Food Industry Award 2025?
A1: The Fast Food Industry Award 2025 (MA000003) is the legal framework set by Australia’s Fair Work Commission that outlines minimum pay rates, working conditions, and employee entitlements for workers in the fast food sector.
Q2: What are the penalty rates for weekends and public holidays?
A2:
- Saturday: 125% of base rate;
- Sunday: 150% of base rate ;
- Public Holidays: 250% of base rate
Q3: How does casual employment work under this award?
A3: Casual loading: 25% extra pay (no paid leave); Minimum shift length: 3 hours;Flexibility: No guaranteed hours, but employers must follow fair rostering rules.
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 Fast Food Industry Award Pay Rates 2024: What You Need to Know
McDonald’s Case Study: Unlocking Fast Food Award Pay Rates
