Hospitality Annualised Salaries 2026: What Employers Need to Review

You increased your salaried employees’ pay after the 1 July 2026 wage increase.

We covered the key changes and payroll actions hospitality operators should consider in our guide to the 2026 HIGA Award rates.

Job done?

Not necessarily.

One of the biggest misconceptions in hospitality payroll is that paying someone a salary automatically means you are covered. While salary arrangements can provide a practical way to pay certain employees, they still need to ensure the employee receives at least their minimum entitlements under the Hospitality Industry (General) Award.

The problem is that hospitality businesses change constantly. Rosters move, trading hours increase, managers cover staff shortages and busy periods create additional hours.

A salary that was compliant when it was first set up may not remain compliant forever.

For hospitality operators, the key question is simple:

If Fair Work reviewed your payroll tomorrow, could you demonstrate that your salaried employees have received at least what they were entitled to under the Award?

Salaried employees need a different compliance review

If an employee is paid an annual salary instead of receiving separate hourly rates, penalties, overtime or allowances, the salary needs to continue covering the employee’s minimum entitlements under the Award.

A salary increase does not automatically guarantee compliance.

The calculation that mattered last year may no longer be accurate after award rates increase.

“They’re on salary” is not the same as “they’re covered”

This is one of the most common payroll assumptions in hospitality.

A venue may have managers, supervisors or senior employees who are paid a fixed annual salary and believe this removes the need to consider Award requirements.

It does not.

An annual salary is simply another method of paying an employee. The business still needs to ensure the employee receives at least what they would have received under the Hospitality Industry (General) Award.

This becomes particularly important where employees regularly work:

• Late nights

• Weekends

• Public holidays

• Additional shifts

• Extended trading periods

• Busy seasonal periods

A salary arrangement that works for a standard roster may not work if the employee’s actual hours or work patterns change.

Why hospitality salaries can fall out of compliance

Hospitality is different from many other industries because workloads change quickly.

A duty manager might regularly work additional hours during events.

A venue manager or head chef may cover unexpected staff shortages.

A gaming manager might work different patterns during busy trading periods.

A salaried employee may have originally been paid based on one expected roster, but over time their responsibilities increase.

The risk appears when the actual hours worked no longer match the assumptions used when the salary was established.

For example:

A venue sets an employee’s salary based on their normal roster, including expected weekend and evening work.

Over time, the venue expands trading hours. The manager begins working additional nights, more public holidays and longer shifts.

The salary stays the same.

The employee may still appear to be well paid, but the business should review whether the salary continues to cover all Award entitlements.

What hospitality employers should review after a wage increase

A payroll review does not need to be complicated, but it does need to be practical.

Start with these questions.

1. Has the employee’s salary been reviewed?

Every time Award rates increase, salaried employees should be reviewed.

The question is not simply:

“Did we increase their salary?”

The question is:

“Does their current salary still cover their Award entitlements?”

2. Has their roster changed?

A salary calculation is only useful if it reflects the employee’s actual work pattern.

Review whether employees are now:

• Working more hours

• Taking on additional responsibilities

• Working different shifts

• Covering more weekends or public holidays

Changes in operations can create payroll risks even where salaries have not changed.

3. Are actual hours beingtracked?

Many businesses assume salaried employees do not need their hours monitored.

However, accurate records are essential when testing whether salary arrangements remain appropriate.

Without visibility over actual hours worked, it becomes difficult to demonstrate compliance.

4. Are payroll systems keeping accurate records?

Your payroll system should reflect how employees are actually paid.

This includes ensuring:

• Correct employee classifications

• Correct salary amounts

• Accurate records

• Updated award rates where relevant

Payroll is not just an administrative process. It is part of your compliance system.

5. Could you explain the calculation?

A strong payroll process should allow you to answer:

“Why is this employee’s salary enough to cover their Award entitlements?”

If the answer relies on assumptions, outdated calculations or “that is what we have always paid”, it may be time for a review.

Salary reviews are easier than fixing underpayments

Hospitality businesses are busy. Payroll decisions are often made years ago and then carried forward.

The risk is that a salary arrangement continues even though the business, roster or Award rates have changed.

A regular review process helps identify issues before they become larger problems.

A good review looks at:

• Current salary arrangements

• Employee classifications

• Actual working patterns

• Award requirements

• Payroll records

The goal is not to complicate payroll.

The goal is to make sure the way employees are paid still matches how your business operates.

How Admyn helps hospitality businesses stay payroll compliant

Hospitality payroll is more than processing timesheets and paying employees.

It requires understanding how venues actually operate.

Admyn works with pubs, clubs, restaurants and accommodation businesses to review payroll systems, reporting and processes to help identify risks before they become expensive problems.

Whether you are reviewing salaried employees, preparing for growth or wanting confidence that your payroll processes are working correctly, a proactive review can save significant time and disruption later.

Need help reviewing your hospitality payroll?

Contact Admynfor practical, hospitality-focused payroll and compliance support.