HIGA Award Rates 2026: What Hospitality Operators Need to Know Before 1 July
Every year the Fair Work Commission hands down its Annual Wage Review decision, and every year hospitality operators have a short window to update their payroll before new rates take effect.
For 2026-27, that window is tighter than usual. The decision is expected in the first or second week of June. New rates apply from the first full pay period on or after 1 July. And from that same date, Payday Super changes the way super is paid entirely.
That is a lot landing at once. This article covers the current HIGA rates, what the 2026 increase is likely to look like, and exactly what needs to happen in your payroll before July.
What is the HIGA and who does it cover?
The Hospitality Industry (General) Award 2020 (MA000009) sets the minimum pay rates and conditions for most workers in hotels, pubs, taverns, bars, clubs, accommodation venues, resorts and catering businesses where hospitality is the primary operation.
It is the award most pub and club operators in Australia are working under. If you are not sure whether HIGA applies to your venue, use the Fair Work Ombudsman's Pay and Conditions Tool (PACT) to confirm. Some restaurants and cafes are covered by the Restaurant Industry Award (MA000003) instead.
Current HIGA Rates: 2025-26
The rates below have been in effect since the first full pay period on or after 1 July 2025, following the Fair Work Commission's 3.5% increase in the 2024-25 Annual Wage Review.
Base hourly rates (full-time and part-time employees)
Classification Hourly rate
Introductory $24.28
Level 1 (Food & Beverage Attendant Grade 1, Kitchen Attendant Grade 1, Guest Service Grade 1) $24.95
Level 2 (Food & Beverage Attendant Grade 2, Cook Grade 1, Kitchen Attendant Grade 2, Storeperson Grade 1, Front Office Grade 1) $25.85
Level 3 (Food & Beverage Attendant Grade 3, Cook Grade 2, Clerical Grade 2, Front Office Grade 2, Kitchen Attendant Grade 3) $26.70
Level 4 (Cook Tradesperson Grade 3, Food & Beverage Tradesperson Grade 4, Front Office Grade 3) $28.12
Level 5 (Cook Tradesperson Grade 4, Food & Beverage Supervisor, Front Office Supervisor, Clerical Supervisor) $29.88
Casual employees receive the ordinary hourly rate plus a 25% casual loading on top.
Key penalty rates (full-time and part-time)
When Rate
Saturday 125% of ordinary hourly rate
Sunday 175% of ordinary hourly rate
Public holiday 225% of ordinary hourly rate
Evening work (7pm to midnight, Mon to Fri) Ordinary rate + $2.81 per hour
Early morning (midnight to 7am, Mon to Fri) Ordinary rate + $4.22 per hour
Casual penalty rates
When Rate
Saturday 150% of ordinary hourly rate (inclusive of casual loading)
Sunday 175% of ordinary hourly rate (inclusive of casual loading)
Public holiday 250% of ordinary hourly rate (inclusive of casual loading)
Always confirm current rates against the Fair Work Ombudsman's pay guide for MA000009.
These figures are indicative and based on rates effective 1 July 2025.
What to Expect From the 2026-27 Decision
The decision has not been handed down yet. It is expected in the first or second week of June 2026. This article will be updated with confirmed rates as soon as the Fair Work Commission publishes its determination.
Here is what the submissions tell us heading into the decision.
The ACTU has lodged a claim for a 5% increase, which would lift the National Minimum Wage from $24.95 to approximately $26.20 per hour. They argue that award-reliant workers have not fully recovered the real wage losses from the 2021-23 inflation period.
Employer groups including Ai Group and ACCI are pushing for a more modest increase in the 3 to 3.5% range, citing ongoing cost pressures on small businesses including the simultaneous introduction of Payday Super from 1 July.
The Australian Government has supported a real wage increase above inflation but has not nominated a specific figure.
Based on the Commission's recent decisions and the economic commentary, most forecasters are expecting an outcome somewhere between 3.5% and 4.5%. The Commission has been consistent in recent years about balancing cost-of-living pressures on workers against the capacity of small businesses to absorb increases.
What a 3.5% increase would mean at key HIGA levels:
Classification Current rate At 3.5% At 4.5%
Introductory (full-time) $24.28 $25.13 $25.37
Level 1 (full-time) $24.95 $25.82 $26.07
Level 2 (full-time) $25.85 $26.76 $27.01
Level 3 (full-time) $26.70 $27.63 $27.90
Level 4 (full-time) $28.12 $29.10 $29.39
Level 1 (casual incl. 25% loading) $31.19 $32.28 $32.59
These are projections only. Confirmed rates will be published here once the Fair Work Commission hands down its decision.
What Hospitality Operators Need to Do Before 1 July
1. Watch for the decision in early June
The Fair Work Commission will publish its decision on the Fair Work website at fwc.gov.au. Bookmark the Annual Wage Review 2026 page and check it in the first two weeks of June.
Once the decision is out, you typically have around three weeks before the new rates take effect. That is enough time to update your payroll system if you act quickly.
2. Update your payroll software immediately after the decision
Most payroll platforms including Xero update their award rate tables automatically or with a prompt. Do not assume the update happens without you checking it. Confirm the new rates are applied in your system before your first pay run in July.
If you run multiple classification levels across your venue, check each one. The percentage increase applies across all levels, but rounding can create small differences.
3. Review annualised salary arrangements
If you have non-managerial staff on annualised salary arrangements under the HIGA, you need to conduct your annual reconciliation by 12 months from the commencement of the arrangement or upon termination.
As part of that review, confirm the annualised salary still sits above what the employee would have earned at the new hourly rates, including all penalty rates and overtime based on actual hours worked. A salary that covered the old rates may not cover the new ones if hours or penalty patterns have changed.
4. Check your casual rates
Casual loading applies on top of the new base rates. If you calculate casual rates manually or have them set in a roster system, update them when the new base rates come through. Getting the base rate right but leaving the casual rate unchanged is a common error.
5. Factor the increase into your wage budgets now
The Annual Wage Review lands at the same time as Payday Super, new super rates, and the start of a new financial year. If you are building your FY2026-27 budget or forecasting wages, use a 3.5% to 4.5% increase on your current wage base as a planning range until the decision is confirmed.
For most hospitality venues, a 3.5% increase across a casual-heavy workforce adds up quickly. Model it against your current roster and trading position before July so the impact is not a surprise.
A Note on the Restaurant Industry Award
If your venue is primarily a restaurant or cafe, check whether you fall under the Restaurant Industry Award (MA000003) rather than HIGA. The two awards have different coverage rules and different rate structures.
Venues that are pubs, clubs, hotels, taverns or accommodation providers are almost always under HIGA. Mixed-format venues that operate both a restaurant and a bar or accommodation component should confirm coverage with the Fair Work Ombudsman or their payroll adviser.
We Will Update This Article When the Decision Drops
As soon as the Fair Work Commission hands down the 2026-27 Annual Wage Review decision, we will update this article with the confirmed rates across all HIGA classification levels, including penalty and casual rates, and the updated projections table above.
If you would like to be notified when we publish the update, or if you want help confirming your payroll is set up correctly before 1 July, reach out to us at info@admyn.com.au or book a free consultation.
Getting the rates wrong from the first July pay run is an underpayment. It is easier and cheaper to check in advance.