Hospitality Award Rates 2019 Calculator
Calculate accurate hospitality award rates for 2019 based on employee classification, hours worked, and other factors. Updated with official Fair Work Australia data.
Comprehensive Guide to Hospitality Award Rates 2019
The Hospitality Industry (General) Award 2010 covers employees in the hospitality industry across Australia, including hotels, motels, restaurants, cafes, catering operations, and clubs. The 2019 award rates represent a critical reference point for both employers and employees to ensure fair compensation and compliance with Australian workplace laws.
Understanding the Hospitality Award Structure
The award system classifies employees into different levels based on skills, responsibilities, and experience. Here’s the basic structure:
- Level 1: Entry-level employees with minimal experience (e.g., kitchen hands, cleaners)
- Level 2: Employees with basic skills (e.g., waitstaff, bar attendants)
- Level 3: Skilled employees with some experience (e.g., cooks, senior waitstaff)
- Level 4: Supervisory roles (e.g., shift supervisors, duty managers)
- Level 5: Management positions (e.g., restaurant managers, head chefs)
| Classification Level | 2019 Minimum Hourly Rate | Typical Roles |
|---|---|---|
| Level 1 | $19.49 | Kitchen hand, cleaner, porter |
| Level 2 | $20.50 | Waiter, bar attendant, room attendant |
| Level 3 | $22.10 | Cook, senior waiter, gaming attendant |
| Level 4 | $23.83 | Supervisor, duty manager, chef de partie |
| Level 5 | $26.71 | Restaurant manager, head chef, food and beverage manager |
Key Components of Hospitality Award Rates
The total compensation under the hospitality award consists of several components:
- Base Rate: The minimum hourly wage for the classification level
- Shift Loadings: Additional pay for working outside standard hours (7am-7pm Monday to Friday)
- Weekend Penalties: Higher rates for Saturday and Sunday work
- Public Holiday Rates: Premium pay for working on public holidays
- Allowances: Additional payments for specific work conditions or requirements
Shift Loadings and Penalty Rates
One of the most important aspects of the hospitality award is the system of loadings and penalty rates for non-standard hours:
| Time Period | Loading/Penalty | 2019 Rate |
|---|---|---|
| Evening (after 7pm) | 10% loading | +10% of base rate |
| Night (after midnight) | 15% loading | +15% of base rate |
| Saturday | 25% penalty | +25% of base rate |
| Sunday | 50% penalty | +50% of base rate |
| Public Holidays | 150% penalty | 2.5× base rate |
For example, a Level 2 employee working a Sunday night shift would receive:
- Base rate: $20.50
- Sunday penalty (50%): +$10.25
- Night loading (15%): +$3.08
- Total: $33.83 per hour
Casual Employees and the 25% Loading
Casual employees in the hospitality industry receive a 25% loading in lieu of paid leave entitlements. This means:
- A Level 1 casual would earn $19.49 × 1.25 = $24.36/hour
- A Level 3 casual would earn $22.10 × 1.25 = $27.63/hour
This loading is calculated on the base rate before any penalty rates or allowances are applied.
Allowances in the Hospitality Award
The award provides for several allowances that may apply depending on the specific work conditions:
- Uniform Allowance: $15.50 per week for employees required to wear a uniform
- Meal Allowance: $22.30 per week for employees required to work through meal breaks
- First Aid Allowance: $18.70 per week for designated first aid officers
- Tool Allowance: $12.80 per week for employees required to provide their own tools
- Vehicle Allowance: $0.78 per km for employees required to use their own vehicle for work
Annual Leave and Other Entitlements
Full-time and part-time employees under the hospitality award are entitled to:
- 4 weeks paid annual leave (5 weeks for shift workers)
- 10 days paid personal/carer’s leave
- 2 days paid compassionate leave
- Up to 5 days unpaid carer’s leave
- Long service leave (varies by state)
For annual leave loading, employees receive an additional 17.5% of their base rate for the period of leave.
Superannuation Requirements
As of 2019, employers were required to contribute 9.5% of an employee’s ordinary time earnings to a complying superannuation fund. This was scheduled to gradually increase to 12% by 2025.
Ordinary time earnings include:
- Base wages
- Shift loadings
- Weekend penalties
- Allowances
- Commissions
- Bonuses (if part of ordinary hours)
Overtime payments and most penalty rates for public holidays are not considered ordinary time earnings for superannuation purposes.
Common Compliance Issues in 2019
The Fair Work Ombudsman identified several common compliance issues in the hospitality industry during 2019:
- Underpayment of penalty rates: Many employers failed to properly apply weekend and public holiday loadings
- Incorrect classification: Employees were often classified at lower levels than their actual duties warranted
- Unpaid trial shifts: Some employers required unpaid “trial shifts” that exceeded reasonable demonstration of skills
- Cash wage underpayments: “Cash in hand” payments that didn’t meet award rates
- Failure to pay allowances: Not providing required allowances for uniforms, meals, or tools
The Fair Work Ombudsman conducted numerous audits in 2019, particularly targeting cafes, restaurants, and fast food outlets in major cities. Significant back-pay orders were issued against several high-profile hospitality businesses.
How to Ensure Compliance with 2019 Award Rates
To ensure compliance with the 2019 hospitality award rates, employers should:
- Regularly review employee classifications to ensure they match actual duties
- Implement a robust time-and-attendance system that automatically applies correct penalty rates
- Conduct annual audits of payroll records
- Provide clear written information to employees about their classification and pay rates
- Keep detailed records of hours worked, including start and finish times
- Stay updated with Fair Work Commission announcements about award variations
Recent Changes and Updates
While this calculator focuses on 2019 rates, it’s important to note that the hospitality award has undergone several changes since then. Key developments include:
- 2020: The Fair Work Commission increased minimum wages by 1.75% from 1 July 2020
- 2021: A 2.5% increase to minimum wages from 1 July 2021
- 2022: The minimum wage increased by 5.2%, with a 4.6% increase for other award classifications
- 2023: A 5.75% increase to minimum wages from 1 July 2023
Employers should regularly check the Fair Work Commission website for the most current award rates and conditions.
Resources for Further Information
For authoritative information about hospitality award rates, consult these official resources:
- Fair Work Ombudsman – Hospitality Award Summary
- Full Hospitality Industry (General) Award 2010 Text
- ATO Guidelines on Ordinary Time Earnings
For historical rate information, the Australian Bureau of Statistics maintains archives of wage price indexes and award rate changes.
Frequently Asked Questions
Q: Can an employer pay above the award rate?
A: Yes, employers can pay above award rates, but they cannot pay below them. Any enterprise agreement must pass the “better off overall test” (BOOT) compared to the award.
Q: Do penalty rates apply to salaried employees?
A: For salaried employees, the salary must be sufficient to cover all award entitlements including penalty rates. The Fair Work Commission provides tools to calculate whether a salary meets this requirement.
Q: What happens if an employee works on a public holiday?
A: Employees who work on public holidays are entitled to be paid at 250% of their base rate (double time and a half) for all hours worked, plus they receive the day off with pay or an additional day’s pay.
Q: Are meal breaks mandatory?
A: Yes, the award specifies minimum break requirements. For example, employees working more than 5 hours are entitled to an unpaid 30-minute meal break.
Q: Can an employer average hours over a roster cycle?
A: Yes, some awards allow for averaging of hours over a roster cycle (usually 4 weeks) for full-time employees, but the average must not exceed 38 hours per week.