Isabelle TorresThe Hospitality Industry (General) Award 2020 [MA000009], commonly known as the HIGA, is Australia's primary modern award for the hospitality sector. It sets legally enforceable minimum pay rates, penalty rates, and workplace entitlements for a large number of workers employed in hotels, restaurants, cafes, catering companies, clubs, gaming venues, and related businesses across Australia. Whether you work as a food and beverage attendant, a hotel receptionist, a kitchen hand or a chef, the HIGA most likely governs your minimum pay conditions under the Fair Work Act 2009. Updated pay rates took effect from the first full pay period on or after 1 July 2025, following the Fair Work Commission's Annual Wage Review decision.
Pay Structure and Classification Levels
The HIGA organises workers into classification levels ranging from an introductory tier through to Level 6, reflecting skill, experience, and responsibility. Each level carries a minimum base hourly rate for full-time and part-time employees, with casual employees receiving these rates plus a 25% casual loading (as required by National Employment Standards s.67B, effective 26 August 2022).
Current minimum hourly rates (effective 1 July 2025):
| Classification | Role examples | Full-time / Part-time | Casual (incl. 25%) |
|---|---|---|---|
| Introductory | Trainee attendants, entry-level cleaners | AUD $24.28/hr | AUD $30.35/hr |
| Level 1 | Food & Beverage Attendant Gr 1, Kitchen Attendant Gr 1, Guest Service Gr 1 | AUD $24.95/hr | AUD $31.19/hr |
| Level 2 | Cook Grade 1, Front Office Clerk, F&B Attendant Gr 2, Clerical worker | AUD $25.85/hr | AUD $32.31/hr |
| Level 3 | Cook Grade 2, Skilled F&B Attendant Gr 3, Senior Kitchen Hand | AUD $26.70/hr | AUD $33.38/hr |
| Level 4 | Tradesperson Cook Gr 3, F&B Tradesperson Gr 4, Leading Hand | AUD $28.12/hr | AUD $35.15/hr |
| Level 5 | Supervisor, Tradesperson Cook Gr 4 | AUD $29.88/hr | AUD $37.35/hr |
| Level 6 | Tradesperson Cook Gr 5, Senior Supervisor | AUD $30.68/hr | AUD $38.35/hr |
Weekly minimum rates for full-time employees (38 ordinary hours) range from AUD $922.70 at the Introductory level to AUD $1,165.70 at Level 6. These rates sit above the National Minimum Wage of AUD $24.10/hour (as of 1 July 2025), reflecting the specific skills and conditions of the hospitality industry.
Managerial staff in hotels are covered under a separate classification with a minimum annualised salary of AUD $60,732 per year (2025-26).
Working Hours, Overtime, and Penalty Rates
Ordinary hours under the HIGA are a maximum of 38 per week for full-time employees, spread across five days. The award permits flexible rostering arrangements common in the hospitality industry, including split shifts and irregular patterns.
Penalty Rates
Penalty rates apply when work is performed outside ordinary hours or on weekends and public holidays:
| Period | Full-time / Part-time | Casual |
|---|---|---|
| Monday to Friday (ordinary hours) | 100% | 125% (casual loading) |
| Saturday | 125% | 150% |
| Sunday | 150% | 175% |
| Public holidays | 225% | 250% |
| Evening work (7 pm – midnight, Mon–Fri) | Base + AUD $2.81/hr | Base + AUD $2.81/hr |
| Overnight (midnight – 7 am) | Base + AUD $4.22/hr | Base + AUD $4.22/hr |
Overtime
Overtime is payable when a full-time or part-time employee works beyond their ordinary hours in a day or week:
- First 2 hours of overtime: 150% of the ordinary hourly rate
- Each additional hour: 200% of the ordinary hourly rate
Casual employees do not receive overtime rates; their casual loading compensates for the lack of leave entitlements, not for overtime.
Minimum Shift Engagement
Casual employees are entitled to a minimum of 3 hours' pay per shift, regardless of how short the shift turns out to be. Part-time employees must have their guaranteed hours, days, and roster pattern documented in writing before commencing work.
Annual Leave
Permanent (full-time and part-time) employees accrue 4 weeks (20 working days) of paid annual leave per year under the National Employment Standards (Fair Work Act 2009 s.87). Part-time employees accrue on a pro-rata basis proportional to their contracted hours.
The HIGA confirms an annual leave loading of 17.5%, applied on top of the base rate of pay during annual leave periods. This loading compensates employees for the loss of penalty rates and shift allowances they would otherwise earn during the leave period.
Annual leave accrual rate:
- Full-time (38 hrs/week): approximately 2.923 hours per week, or 1.346 hours per fortnight
- Part-time: pro-rata based on ordinary hours contracted
Employees may take annual leave when mutually agreed with their employer. Unused leave accrues indefinitely and must be paid out on termination of employment (Fair Work Act 2009 s.90).
Casual employees are not entitled to paid annual leave; their 25% casual loading serves as compensation for this.
Notice Period
The minimum notice periods under the Hospitality Award are governed by the National Employment Standards, Fair Work Act 2009 s.117, as the award does not provide any enhanced contractual notice above the statutory minimum.
Employer dismissal (s.117 FWA)
| Continuous service | Minimum notice |
|---|---|
| Less than 1 year | 1 week |
| 1 year to less than 3 years | 2 weeks |
| 3 years to less than 5 years | 3 weeks |
| 5 years or more | 4 weeks |
| Over 45 with 2+ years of service | +1 week supplement |
Employers may choose to pay out the notice period in lieu rather than requiring the employee to work the notice (payment in lieu of notice). The payment must equal the ordinary time earnings the employee would have received during the notice period.
Employee resignation
The same NES notice scale applies to employee resignation. If an employee fails to provide the required notice, an employer may withhold wages up to the equivalent amount from any final payment, but only to the extent permitted by Fair Work Act s.324.
Redundancy Pay
When a position is made genuinely redundant — meaning the employer no longer requires the work to be performed by anyone and has complied with consultation obligations under the HIGA — the National Employment Standards genuine redundancy scale (Fair Work Act 2009 s.119 and Schedule 4) applies:
| Years of continuous service | Weeks of redundancy pay |
|---|---|
| 1 | 4 weeks |
| 2 | 6 weeks |
| 3 | 7 weeks |
| 4 | 8 weeks |
| 5 | 10 weeks |
| 6 | 11 weeks |
| 7 | 13 weeks |
| 8 | 14 weeks |
| 9 | 16 weeks |
| 10 or more | 12 weeks (capped) |
Redundancy pay is calculated at the employee's base rate of pay for ordinary hours, excluding allowances, bonuses, and overtime. The HIGA does not provide any confirmed enhanced redundancy entitlement above the NES minimum; check your specific enterprise agreement or employment contract for any improvement.
Small business exemption: Employers with fewer than 15 employees at the time of dismissal are exempt from paying NES redundancy pay under Fair Work Act 2009 s.121(1)(b). Employees of small businesses in this situation should contact the Fair Work Ombudsman for guidance.
Tax treatment: Genuine redundancy payments receive concessional tax treatment under the Income Tax Assessment Act 1997. The tax-free component is AUD $12,524 plus AUD $6,264 for each completed year of service (2025-26 indexed amounts). Amounts above this threshold are taxed as Eligible Termination Payments (ETPs).
Superannuation
Employers covered by the HIGA must make superannuation contributions under the Superannuation Guarantee (Administration) Act 1992. The current Superannuation Guarantee (SG) rate is:
- 12.0% of ordinary time earnings from 1 July 2025
The employer SG contribution is in addition to the employee's gross wage — it is not deducted from take-home pay. For a Level 1 full-time employee earning AUD $948.00/week (38 hrs at $24.95/hr), the employer super contribution is approximately AUD $5,915/year.
Choice of fund: Under Fair Work Act 2009 s.149A, most employees are entitled to choose which complying superannuation fund their employer pays into. The employer must pay into the employee's chosen fund if it meets the requirements of a complying fund. Hospitality workers who have not made a choice will have contributions paid into the employer's default fund.
Concessional contributions cap (2025-26): Total concessional contributions (employer SG + employee salary sacrifice) are capped at AUD $30,000 per year for tax purposes.
Key Allowances
The HIGA provides a range of allowances that supplement base pay in specific situations:
| Allowance | Amount (2025-26) |
|---|---|
| Meal allowance (overtime or missed break) | AUD $16.73 per occasion |
| Motor vehicle (when using own car for work) | AUD $0.99 per km |
| Tools and equipment (trades staff providing own tools) | AUD $2.03/day (max AUD $9.94/week) |
| Overnight stay (away from home) | AUD $64.10 per night + 150% if required to work |
| Split shift allowance | Flat dollar amount per shift (check current pay guide) |
| Uniform / laundry allowance | Flat rate where uniforms required but not supplied |
Allowances are indexed annually following the Fair Work Commission Annual Wage Review. Always verify current amounts in the FWO Pay Guide effective from 1 July of the applicable year.
Your Rights at Work
Unfair Dismissal
Employees covered by the HIGA are eligible to apply for unfair dismissal under Fair Work Act 2009 s.382 after:
- 6 months of employment (for employers with 15 or more employees)
- 12 months of employment (for small businesses with fewer than 15 employees)
Applications must be lodged with the Fair Work Commission within 21 days of the dismissal taking effect.
General Protections
The Fair Work Act 2009 Part 3-1 protects employees from adverse action taken because they exercise a workplace right (such as making a complaint, taking leave, or joining a union). These protections apply from Day 1 of employment — there is no minimum service requirement.
Right of Entry
Unions with enterprise coverage rights may enter hospitality workplaces to hold discussions with members or investigate suspected contraventions of the award, subject to Fair Work Act 2009 Part 3-4 right of entry requirements.
Workplace Health and Safety
Employers in the hospitality industry must comply with the Work Health and Safety Act 2011 (or state equivalents), which places a primary duty on employers to ensure the health, safety, and welfare of all workers so far as is reasonably practicable. This includes managing risks associated with manual handling, wet floors, heat in kitchen environments, late-night work, and exposure to alcohol-related incidents.
Casual Conversion
Under the Fair Work Act 2009 (as amended), casual employees who have been employed regularly and systematically for at least 12 months are entitled to receive a written offer of conversion to permanent employment, or written reasons why conversion is not offered. If an employee is not offered conversion, they may make their own written request to convert.
This article is for general information purposes only and does not constitute legal advice. For questions about your specific employment situation, contact your union, the Fair Work Ombudsman (1300 724 690) or a qualified employment lawyer. Pay rates are as of the first full pay period on or after 1 July 2025.
