Each year, the Fair Work Commission reviews minimum wages, and hospitality operators need to ensure their payroll systems keep pace.
For businesses covered by the Hospitality Industry (General) Award (HIGA), wage increases involve more than simply updating hourly rates. Penalty rates, casual loadings, annualised salaries and payroll configurations all need to be reviewed.
With the 2026–27 rates now in effect, it's a good opportunity to check that your payroll is accurate and your wage budgets reflect the true cost of employing staff.
This article provides a look back at the previous HIGA rates and outlines five practical payroll checks every hospitality operator should make. For the latest 2026–27 rates, refer to our updated guide linked above.
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.
Previous 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 Hospitality Operators Need to Do Before 1 July
1. Confirm you're using the correct award rates
Check that your payroll system reflects the latest HIGA rates for every employee classification.
Don't assume your software has automatically applied the changes. Review your pay templates, employee classifications and any manually entered rates.
If you operate multiple departments or venues, make sure the correct rates are applied consistently.
2. Check penalty rates and allowances
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
An annual salary doesn't automatically mean an employee is receiving everything they're entitled to under the Award.
For employees covered by HIGA annualised wage arrangements, ensure salaries adequately cover the relevant award entitlements, including penalties and overtime.
Maintain accurate records of hours worked and complete the required reconciliations. Where an annualised wage arrangement applies, reconciliation is required at least every 12 months and when employment ends.
A salary that was sufficient under previous award rates may no longer cover the employee's entitlements.
4. Check casual rates and employee classifications
Casual employees generally receive a 25% loading, but the correct total rate depends on when they work and the applicable award provisions.
Review casual pay templates, weekend penalties and public holiday rates.
It's also worth checking employee classifications. As responsibilities change, employees may move into a higher classification without their payroll settings being updated.
5. Review your actual wage costs
Award increases don't just affect payroll compliance. They also affect profitability.
Review your wage costs against revenue, particularly across departments with different staffing requirements.
Consider how penalty rates, overtime, rostering patterns and staffing levels affect your overall wage percentage.
Regular wage reporting can help identify where costs are increasing and whether changes to rostering or operational practices are needed.
The takeaway: Payroll accuracy isn't something to check only when award rates change. Regular reviews help protect your business from underpayments, improve wage visibility and keep labour costs under control.
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.
How Confident Are You in Your Payroll?
Hospitality payroll can be complicated. Between award classifications, penalty rates, allowances and changing employee entitlements, there's plenty of room for small errors to go unnoticed.
At Admyn, we work with hospitality businesses to help keep payroll accurate, organised and running smoothly.
Whether you need a review of your existing setup or ongoing payroll support, we can help.
Explore Our Hospitality Payroll Services →
UPDATE | 2026–27 HIGA Pay Rates Confirmed
The Fair Work Commission has now released its 2026–27 wage decision, and the updated HIGA rates are available.
This article was published before the decision and contains historical rates and projections. For the confirmed rates, including important changes to lower-paid classifications, read our updated guide:
HIGA Pay Rates 2026–27: The Official Rates Are Now Available →