As an employer considering casual staff for your hospitality or retail business, understanding award wage differences is crucial for budgeting and compliance. The key factors impacting your labor costs include:
- Base pay rates – Hospitality awards typically cost more
- Weekend and public holiday penalties – Significant variations exist
- Break entitlements and overtime rules – Compliance risks to manage
- Payroll automation – How HR system can streamline operations
This guide compares costs and helps you make informed staffing decisions while maintaining full award compliance.
Understanding the Hospitality and Retail Awards
What is the Hospitality Industry (General) Award 2025?
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.
What is the General Retail Industry Award 2025?
The General Retail Industry Award 2020 (MA000004) sets the employment conditions for casual workers in retail settings, covering shops and businesses that sell goods and services to the public.
Casual Base Pay Rates (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:
| Employee Type | Hospitality Award (MA000009) | Retail Award (MA000004) |
| Minimum Casual Rate | $29.04/hr | $28.26/hr |
| Casual Loading | +25% | +25% |
*Hospitality pays $0.78/hr more for casuals at the base level.
Weekend & Public Holiday Penalties (2025)
| Day | Hospitality Award | Retail Award |
| Saturday | 125% ($36.30/hr) | 125% ($35.33/hr) |
| Sunday | 150% ($43.56/hr) | 150% ($42.39/hr) |
| Public Holiday | 250% ($72.60/hr) | 250% ($70.65/hr) |
*Hospitality pays slightly more due to higher base rates.
Break Entitlements & Overtime
|
Rule |
Hospitality Award (MA000009) |
Retail Award (MA000004) |
|
Rest Breaks |
10 mins paid per 4-hour shift | 15 mins unpaid for 5+ hour shifts |
| Overtime | After 38 hrs/week or 10 hrs/day |
After 38 hrs/week or 10 hrs/day |
| Night Penalties | +15% after 10 PM |
+15% after 10 PM |
Which Industry is Better for Employers?
Choose Hospitality If:
- You need flexible short shifts (e.g., bars, events).
- Your business thrives on weekend/holiday trade (offset penalty costs).
Choose Retail If:
- You want lower wage costs (base + penalties).
- Your staff work standard daytime hours (no night premiums).
Cost Example:
A casual working 10 hours on Sunday costs
- Hospitality: $435.60
- Retail: $423.90
- Savings in retail: $11.70 per shift
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: Do casuals get annual leave under these awards?
A1: No—casuals receive a 25% loading instead of paid leave.
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?
