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Hospitality Award (HIGA): A Pay Guide for Employers

If you run a pub, cafe, restaurant, hotel or catering business, the Hospitality Industry (General) Award is likely the document that sets the pay and conditions floor for your staff. Getting it right matters — misclassifying an employee or missing a penalty rate can lead to underpayments that add up quickly and are costly to put right.

Who the Hospitality Award covers

The Hospitality Industry (General) Award MA000009 covers employers and employees in the hospitality industry. That broadly includes businesses such as hotels, motels, pubs, taverns, restaurants, cafes and catering operations, along with the staff who work in them — from kitchen and food and beverage roles through to housekeeping, gaming, front desk and management positions.

Hospitality is varied, and not every business or role falls under this award. Some workplaces are covered by a different award, or an enterprise agreement may apply instead. If you're unsure which instrument covers your team, it's worth checking carefully, because the rest of your obligations flow from getting this first step right.

Classification levels: an overview

The Hospitality Award sets out classification levels that group roles by the skills, responsibilities and experience involved. Each level has a corresponding minimum pay rate. Broadly, lower levels cover entry-level and routine roles, while higher levels reflect greater skill, autonomy and supervisory responsibility — for example, a junior food and beverage attendant sits at a different level from an experienced cook or a supervisor.

The practical task for employers is matching each employee to the correct classification based on the duties they actually perform, not just their job title. The award describes the indicative duties for each level to help with this. We've kept this to an overview rather than a full rate table on purpose — the levels and their definitions are detailed, and the rates attached to them change (see the callout below).

Find current pay rates the reliable way. This page does not list dollar amounts. For current, accurate rates under the Hospitality Award, use the official Fair Work Ombudsman Pay and Conditions Tool (P.A.C.T.) or the HIGA pay guide at fairwork.gov.au. Minimum pay rates are reviewed each year and typically change from 1 July, so always check the latest figures rather than relying on a saved rate or a third-party summary.

Penalty rates, overtime and split shifts

The Hospitality Award provides for loadings on top of base rates in certain circumstances. Understanding the concepts helps you budget and roster correctly, even though the exact percentages and rates should be confirmed via the Fair Work tool.

Penalty rates apply to work performed at certain times — for example, evenings, weekends and public holidays — recognising the less sociable hours common in hospitality. Different times attract different penalty rates.

Overtime generally applies when an employee works beyond their ordinary hours, or outside the spread of hours set by the award. Overtime is paid at a higher rate than ordinary time.

Split shifts occur where an employee's work is broken into separate periods within a day, with an unpaid break in between. The award sets out how split shifts are to be handled, and an allowance may apply.

Because these arrangements interact — and because the figures change — the safest approach is to model your rosters against the current award rules and confirm the rates through the official Fair Work resources.

Common allowances

On top of base rates and penalties, the Hospitality Award provides for a range of allowances that may apply depending on the role and the work performed. Common examples include allowances for laundry or special clothing, meals (for instance, where overtime is worked), and certain higher-duties or cold-work situations. The specific allowances, eligibility and amounts are set out in the award and updated over time, so check the current pay guide for what applies to your team.

Why correct classification matters

Classification is where many hospitality payroll problems begin. If an employee is placed at too low a level, they're underpaid against the award — and underpayments can accumulate across every shift until the error is found. Putting it right can mean back-payments, time-consuming reconciliations and, in some cases, regulator attention. Beyond the financial cost, getting pay wrong erodes trust with your team.

The cost of getting it right is far smaller than the cost of getting it wrong. That means classifying each role accurately, applying the correct penalties, overtime and allowances, and keeping your rates current as the award changes each year.

How Employment Star helps

Employment Star helps Australian hospitality businesses interpret the award and run payroll with confidence. We can assist with classifying roles correctly under the Hospitality Award, setting up your payroll so penalty rates, overtime and allowances are applied properly, and keeping your system aligned when rates change. As a certified Employment Hero implementation partner, we can also help you put the right system in place — HR system implementation starts from $2,340, and award-interpretation and payroll support is available through our consulting at $195 per hour.

If award interpretation or payroll is taking up more time than it should — or you simply want to be sure you've got it right — get in touch to book a free discovery call.

General information, not legal advice. Award coverage, classifications and rates depend on your circumstances and change over time. Always confirm current rates via fairwork.gov.au.

Frequently asked questions

HIGA is shorthand for the Hospitality Industry (General) Award MA000009 — the modern award that sets minimum pay and conditions for many employers and employees in the hospitality industry, such as pubs, cafes, restaurants, hotels and catering businesses.

Use the Fair Work Ombudsman’s Pay and Conditions Tool (P.A.C.T.) or the HIGA pay guide at fairwork.gov.au. We don’t publish dollar figures here because rates are reviewed each year and typically change from 1 July.

Match the employee to the classification that fits the duties they actually perform, using the indicative duties described in the award — not just their job title. If a role spans levels or you’re unsure, it’s worth getting the classification reviewed.

Minimum pay rates under modern awards, including the Hospitality Award, are reviewed annually and generally change from 1 July each year. Always check the current rates rather than relying on last year’s figures.

If an employee is classified too low, they’re likely being underpaid against the award. This can lead to back-payments, reconciliations and possible regulator attention, as well as damaging staff trust. Correct classification from the outset is far cheaper than fixing underpayments later.

Talk to Employment Star

Spending too long on award interpretation or payroll? Employment Star’s HR specialists can help you classify roles and set up payroll correctly — book a free discovery call.