Payroll

Restaurant Payroll Australia: Award Rates, Super & Compliance Guide 2026

15 June 2026 · 9 min read

Quick Answer

Restaurant employees in Australia are covered by the Restaurant Industry Award 2020 (MA000119). Minimum rates, penalty rates and allowances are set by Fair Work and updated every 1 July. From 1 July 2026, super must be paid every payday — not quarterly — so get your payroll system ready now.

Running a restaurant in Australia means navigating one of the most demanding payroll environments in the country. You have casual staff, part-timers, juniors, kitchen hands and floor managers — each on different rates, each triggering different obligations. Get it wrong and Fair Work can back-pay claims going back six years.

Two compliance deadlines are hitting Australian employers right now. The superannuation guarantee rate moved to 12% on 1 July 2025 — that is already live and applies to every eligible employee you paid after that date. Then on 1 July 2026 — 16 days away as this is published — Payday Super becomes law, meaning you can no longer batch super quarterly. Every single pay run must include a super contribution paid on the same day.

This guide covers the Restaurant Industry Award 2020 rates, penalty rates, allowances, junior rates, and exactly what you need to change in your payroll process before 1 July 2026. All figures reference Fair Work Australia, the ATO and the current award as at June 2026.

Which Award Covers Restaurant Employees?

The Restaurant Industry Award 2020 (MA000119) covers most employees working in restaurants, cafes, catering operations and similar food and drink businesses in Australia. This includes full-time, part-time and casual employees in roles such as waitstaff, kitchen hands, cooks, chefs and bar staff. It does not cover fast food workers — they fall under the Fast Food Industry Award 2020 (MA000003).

The award is a minimum standard set by the Fair Work Commission. You can pay above the award, but never below it. If you have an enterprise agreement in place, that agreement must still leave employees better off overall compared to the award — this is called the Better Off Overall Test (BOOT).

If you are unsure which award applies, Fair Work Australia's Award Finder tool at fairwork.gov.au lets you search by industry and job role. For most sit-down restaurants and cafes, MA000119 is your starting point.

Not sure which award applies? Use Fair Work's Award Finder at fairwork.gov.au/awards-and-agreements/awards/find-my-award before you process your next pay run.

Key hospitality awards in Australia:

Restaurant Industry Award 2020 (MA000119) — restaurants, cafes, catering
Fast Food Industry Award 2020 (MA000003) — fast food chains and takeaway
Hospitality Industry (General) Award 2020 (MA000009) — hotels, clubs, bars

Restaurant Award Pay Rates 2025–2026

The Fair Work Commission reviews minimum wages every year and changes take effect on 1 July. For the 2025–2026 financial year, the national minimum wage is $24.10 per hour. Under the Restaurant Industry Award, adult classifications start at Level 1 and increase through to Level 6 based on skills and responsibilities.

As a guide — and you should always verify current rates at fairwork.gov.au — a Level 1 food and beverage attendant earns approximately $24.10 per hour base rate for ordinary hours. A Level 3 experienced cook or supervisor earns a higher base. These rates are for full-time and part-time employees. Casual employees receive a 25% loading on top of the base rate under the Restaurant Award, in lieu of annual leave and sick leave entitlements.

New rates for the 2026–2027 year are expected to be announced by the Fair Work Commission in June 2026 and will take effect 1 July 2026. If you are reading this in mid-June, check fairwork.gov.au right now so your first pay run of the new financial year uses the correct rates.

Always pull your rates directly from the Fair Work Pay Calculator at calculate.fairwork.gov.au — do not rely on a spreadsheet last updated two years ago.

Restaurant Award classification levels (MA000119):

Level 1 — Food and Beverage Attendant Grade 1 (entry level, no prior experience)
Level 2 — Food and Beverage Attendant Grade 2 (some skills, eg. taking orders)
Level 3 — Food and Beverage Attendant Grade 3 (experienced, responsible for sections)
Level 4 — Supervisor or experienced cook
Level 5 — Cook with trade certificate or 3+ years experience
Level 6 — Chef de partie or equivalent senior kitchen role

Penalty Rates: Weekends, Public Holidays and Late Nights

Penalty rates are where restaurant payroll gets expensive and complicated. The Restaurant Industry Award requires you to pay higher rates for work outside ordinary Monday-to-Friday hours. These are not optional — they are a legal minimum.

For full-time and part-time employees under MA000119, Saturday work is paid at 125% of the ordinary rate (time and a quarter). Sunday work is paid at 150% (time and a half). Public holiday work is paid at 225% (double time and a quarter). Casual employees receive their base casual rate including the 25% loading before penalty rates are applied — so a casual working Sunday earns 175% of the ordinary hourly rate (150% penalty plus 25% casual loading).

Split shift allowances also apply under the award. If an employee works a split shift — say, a lunch service and a dinner service with more than one hour unpaid break between them — they are entitled to an additional allowance. Check the current award document for the exact dollar amount as it is updated annually. Late night work (after midnight) also attracts a penalty. If your restaurant trades late, factor this into your labour cost modelling.

Public holidays in your state matter. NSW, VIC, QLD and other states have different gazetted public holidays. A Melbourne Cup public holiday in Victoria is not a public holiday in NSW. Check your state government website each year.

Penalty rate summary — Restaurant Industry Award 2020:

Monday to Friday ordinary hours — 100% (base rate)
Saturday — 125% for full-time/part-time; casual rate + loading
Sunday — 150% for full-time/part-time; casual rate + loading
Public holidays — 225% for full-time/part-time
Overtime (after 11.5 hours in a day) — 150% first 2 hours, 200% after
Midnight penalty — additional allowance for work past midnight

Junior Rates and Apprentice Pay Under the Restaurant Award

If you employ workers under 21 as food and beverage attendants or kitchen hands, junior rates apply under the Restaurant Industry Award. Junior rates are calculated as a percentage of the adult Level 1 rate. Under 16 years old: 40% of adult rate. At 16: 50%. At 17: 60%. At 18: 70%. At 19: 80%. At 20: 90%. From 21 onward the full adult rate applies.

Junior rates do not apply to apprentices — apprentices have their own rate schedule. If you employ an apprentice cook or chef, their pay is set by the apprentice rate under the award, which increases each year of the apprenticeship. A first-year apprentice earns approximately 55% of the adult trade rate. Check the ATO's tax witholding tables for apprentices as a lower PAYG withholding rate may also apply depending on income.

One common mistake: paying a 20-year-old the full adult rate when you believe you are being generous, but then forgetting that from their 21st birthday the full rate is mandatory, not discretionary. Track your employees' birthdays in your payroll system so the rate change happens automatically.

Junior rates do not override the superannuation guarantee. If a junior employee earns $300 or more per month, SG applies at 12% — regardless of their age.

Junior pay rates under Restaurant Industry Award 2020:

Under 16 — 40% of adult Level 1 rate
Age 16 — 50%
Age 17 — 60%
Age 18 — 70%
Age 19 — 80%
Age 20 — 90%
Age 21+ — 100% adult rate applies

Superannuation for Restaurant Staff: 12% Now, Payday Super on 1 July 2026

Every eligible employee in your restaurant — full-time, part-time or casual — is entitled to super if they earn $300 or more in a calendar month. The super guarantee rate has been 12% since 1 July 2025. If you are still using 11.5% in your payroll system, correct it immediately. The ATO can charge the Super Guarantee Charge on underpaid super, which is not tax-deductible and includes a flat penalty component.

The bigger change is Payday Super, which takes effect on 1 July 2026 — that is 16 days from the date this post was published. From that date, super contributions must be paid to your employees' nominated funds on or before the same day as their salary or wages. The current quarterly cycle — where you have until 28 October, 28 January, 28 April and 28 July to pay — will no longer be valid. Every single pay run triggers a super payment obligation due that same day.

For restaurant operators, this is a significant cash flow shift. If you run weekly pays for 10 staff, you will be making 52 super contributions per employee per year instead of four. You need a compliant payroll system that can generate and transmit super payments in real time, or a super clearing house that can handle same-day processing. The ATO's Small Business Superannuation Clearing House (SBSCH) is free for businesses with fewer than 19 employees. Review whether it can handle daily or weekly frequency before 1 July 2026.

Payday Super is live in 16 days. If your current payroll process batches super quarterly, that process is illegal from 1 July 2026. Review your system this week — not next month.

Single Touch Payroll, Payslips and Record-Keeping for Restaurants

Single Touch Payroll (STP) Phase 2 is mandatory for all employers in Australia, including restaurants with even one employee. Every time you run a pay cycle, your payroll software must report salary, tax withheld and super information directly to the ATO. If you are still manually exporting and uploading a file each quarter, you are not STP-compliant and you are exposed to ATO scrutiny.

Payslips must be issued within one working day of each pay period under the Fair Work Act 2009. For restaurant staff, a compliant payslip must show: employer name and ABN, employee name, pay period dates, gross pay, tax withheld, net pay, hourly rate (or the basis of payment), super contribution amount and fund name. If you pay penalty rates, those should be itemised so the employee can verify they were paid correctly. A payslip that just shows a total dollar figure is not sufficient under Fair Work requirements.

Record-keeping obligations require you to keep employee pay records for seven years. This includes time and wages records, leave records and super records. Fair Work inspectors can audit you without advance notice. If you cannot produce records going back seven years, the default assumption under Fair Work Act s.557C is that an underpayment occurred. The burden of proof sits with the employer, not the employee.

Underpayment of wages is the most common Fair Work complaint in hospitality. Back-pay exposure goes back 6 years. If you have not audited your rates since 2020, do it now.

Compliance checklist for restaurant employers:

STP Phase 2 — mandatory for all employers, every pay event reported to ATO
Payslips — must be issued within 1 business day of pay day
Records — retain all pay records for 7 years minimum
Underpayments — employer bears the burden of proof if records are missing
Fair Work audits — can occur without notice; inspectors have broad powers

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Frequently asked questions

What award covers restaurant workers in Australia?

Most restaurant and cafe employees are covered by the Restaurant Industry Award 2020 (MA000119). Fast food workers fall under the Fast Food Industry Award 2020 (MA000003). Check fairwork.gov.au/awards-and-agreements/awards/find-my-award to confirm which award applies to each role.

What is the Sunday penalty rate for restaurant staff in Australia?

Under the Restaurant Industry Award 2020, full-time and part-time employees earn 150% of their ordinary rate on Sundays. Casual employees earn their base casual rate (which already includes the 25% casual loading) multiplied by the 150% penalty, resulting in an effective rate of 175% of the ordinary hourly rate.

Do I have to pay super to casual restaurant employees?

Yes. The $450 per month threshold was abolished in November 2022. From that date, any employee who earns $300 or more in a calendar month is entitled to super at 12% — regardless of whether they are casual, part-time or under 18. Age and employment type do not exempt you from the super guarantee.

What changes to super do restaurant owners need to make before 1 July 2026?

Payday Super becomes law on 1 July 2026, meaning super must be paid on or before the same day as wages — not quarterly. You need a payroll system or clearing house capable of processing same-day super contributions. The ATO's free Small Business Superannuation Clearing House (SBSCH) is an option for businesses with under 19 employees.

How do junior rates work for young restaurant workers in Australia?

Under the Restaurant Industry Award 2020, employees under 21 can be paid a percentage of the adult Level 1 rate — ranging from 40% at under 16 years old to 90% at age 20. From age 21, the full adult rate is mandatory. Junior rates do not exempt employers from paying super on earnings above the $300 monthly threshold.