Hospitality Wage & Tip Guide

Hospitality salary guide: pay rates & awards

Hospitality pay in Australia can look confusing at first glance. Between award rates, and penalty loading, two people working in similar venues can earn very different amounts. This guide breaks down how hospitality wages actually work, what influences pay and what hospitality workers can realistically expect at different stages of their career.

Across Australia, hospitality wages are shaped by a mix of award conditions, experience, location and shift patterns. Entry-level roles are often paid hourly under the Hospitality Award, formally known as the Hospitality Industry (General) Award 2020, while senior chefs, managers and specialists may move onto salaried packages. Weekend work, late nights and public holidays can also significantly increase take-home pay.

Understanding how hospitality pay is structured makes it easier to compare roles, spot fair pay and assess job offers. When you know how awards, penalties and salary packages work, you’re better placed to choose roles that match your experience, availability and earning goals.

Hospitality salary table (Australia)

Hospitality wages vary depending on venue type, responsibilities and experience. The table below shows typical Hospitality Award rates and pay ranges across common hospitality roles in Australia.

These figures are indicative only. Actual pay depends on award classification, penalties, hours worked and whether a role is paid hourly or salaried.

Understanding the Hospitality Industry (General) Award 2020

Most hospitality roles in Australia are covered by the Hospitality Industry (General) Award 2020, often shortened to the Hospitality Award. This award sets the legal minimum pay rates and conditions for many workers in cafés, restaurants, pubs, bars, hotels and similar venues. It applies to full-time, part-time and casual employees who fall within the classifications defined by the award.

The award acts as a safety net, meaning employers must pay at least the rates and entitlements set out in the award. While some workplaces offer higher pay through enterprise agreements or individual contracts, those arrangements must still meet or exceed the minimum standards outlined in the Hospitality Award.

Beyond base pay, the award also governs how and when hospitality workers are paid for less-standard hours, such as nights, weekends and public holidays. This is particularly important in an industry where shift patterns vary week to week and penalty rates can make up a significant portion of overall earnings.

The Hospitality Award covers:

• Minimum hourly rates based on role and classification level
• Penalty rates and loadings for weekends, late nights and public holidays
• Overtime rules for additional hours worked
• Allowances for specific duties or conditions
• Breaks, rostering requirements and minimum shift lengths

Understanding how the award works helps hospitality workers check that their pay is correct, recognise when penalty rates should apply and compare job offers more confidently across different venues.

Hospitality Award rates explained

Hospitality Award rates vary depending on:

• Employment type (full-time, part-time or casual)
• Classification level
• Time and day worked

Casual employees usually receive a casual loading, which is added to the base hourly rate to compensate for the lack of paid leave, sick leave and other entitlements. This higher hourly rate is designed to balance the flexibility of casual work.

Full-time and part-time employees receive paid leave and more predictable hours, but their base hourly rates are generally lower than casual rates. Their overall earnings often increase through penalty rates for weekends, public holidays or overtime.

Award rates are reviewed periodically and can change following Fair Work decisions. For this reason, current figures should always be checked against the latest Fair Work information before accepting a role or reviewing a payslip.

Classifications: Level 1 vs Level 5

Under the Hospitality Award, workers are classified into levels based on their skills, responsibilities and experience.

• Level 1 roles are entry-level positions. These typically involve basic tasks under supervision, such as junior waitstaff or kitchen hands with limited experience.
• Level 3–4 roles involve greater skill and responsibility, such as experienced waitstaff, bartenders or cooks who can work independently.
• Level 5 roles include supervisory or specialised positions, such as senior cooks, team leaders or supervisors with staff responsibilities.

Two people with the same job title may sit at different classification levels depending on what they actually do in the role. This is why pay can vary even within the same venue.

Penalty rates, weekend and public holiday pay

Penalty rates are one of the biggest factors influencing hospitality earnings.

Under the Hospitality Award, higher rates usually apply for:

• Weekend shifts
• Public holidays
• Late-night or early-morning work
• Overtime hours

For example, working weekends or public holidays can significantly boost weekly income compared to weekday shifts. Overtime rates apply when employees work beyond their ordinary hours, particularly for full-time staff.

Penalty rates are designed to compensate workers for unsociable hours and are a key reason hospitality roles can pay more than expected during peak periods.

Tipping and pooling systems explained

Tipping in Australia

The culture of tipping in Australia is optional and not built into the wage system. Customers are not expected to tip, and hospitality workers must be paid correctly under the award regardless of whether tips are received.

Tips are considered separate from wages and do not form part of Hospitality Award rates or penalty payments. Employers are still required to pay the correct base rate, loadings and entitlements even if a venue receives regular tips.

Because tipping is discretionary, income from tips can vary significantly depending on venue type, location and customer behaviour. Some workers may receive tips regularly, while others may not receive them at all.

What is a tip pooling system?

Tip pooling is a method some hospitality venues use to collect and distribute tips among staff. Rather than tips going directly to the person who received them, tips are pooled and shared according to an agreed system.

Tip distributions may be based on:

• Hours worked during a shift
• Role or seniority
• Type of shift worked

Tip pooling is legal in Australia, but they should be transparent and clearly communicated. Workers should understand:

• How tips are collected and recorded
• How and when tips are distributed
• Who is included in the distribution
• Whether management or supervisors receive a share

Tips distributed through pooling are not guaranteed income and should always be viewed as a bonus rather than a replacement for proper wages.

Chef and kitchen salary packages explained

Pay structures in hospitality aren’t the same across all roles. Kitchen roles, particularly chef positions, are more likely to move away from standard Hospitality Award rates and into salaried packages as responsibility increases. That’s why chef pay often works differently to front-of-house roles and needs a closer look.

Hourly vs salaried roles

Junior cooks and early-career chefs are often paid hourly under the Hospitality Award, including penalties for weekends, public holidays and overtime. As chefs progress into senior roles, they may be offered a salary that covers a set number of hours per week rather than being paid per shift.

What’s included in a chef’s salary?

A chef’s salary package may include:

• Base salary
• Reasonable overtime expectations
• Allowances
• Performance bonuses (in some venues)

It’s important for chefs to understand how many hours a salary is intended to cover. A higher salary may not always mean better pay if excessive unpaid overtime is expected.

Senior chef roles often pay more because they involve menu planning, staff management, cost control and operational responsibility, not just cooking.

Hospitality and Restaurant Award pay guide: what to check

When reviewing hospitality pay, it helps to check a few key details:

• Correct classification level
• Base hourly rate or salary
• Penalty rates for weekends and public holidays
• Overtime conditions
• How tips are handled
• Whether allowances apply

Payslips should clearly show hours worked and applicable loadings. If something doesn’t look right, checking against the Award your role falls under can clarify whether pay aligns with minimum standards.

How to increase your earning potential

Hospitality pay isn’t fixed, and progression doesn’t always require changing industries. Many workers increase their earnings by building experience, expanding their skill set and stepping into roles with greater responsibility or less common availability.

Common ways to boost pay include:

• Gaining experience across different venues
• Moving into supervisory or management roles
• Specialising in high-demand areas (such as senior kitchen roles or venue management)
• Working peak shifts with penalty rates
• Expanding skills into leadership, training or operations

In hospitality, consistency matters. Workers who are reliable, adaptable and willing to take on responsibility are often recognised quickly, particularly in fast-paced or high-volume venues where experience directly impacts service quality and operations.

Find hospitality roles that match your pay expectations with CareerOne

Understanding hospitality wages makes it easier to spot roles that align with your skills, availability and income goals. At CareerOne, you can explore hospitality jobs across cafés, restaurants, bars, hotels and venues nationwide, with roles ranging from casual shifts to senior management positions.

When you’re ready, explore hospitality opportunities on CareerOne and find roles that make sense for where you are right now. Clarify your expectations around pay, conditions and progression alongside guides on career pathways and the skills needed to move forward in hospitality.