How Pay Works In Hospitality Roles

The industry of hospo is as diverse as they come. Some may be cooking up food on film sets, others could be leading tour groups around famous cities. But whether you're a bartender, receptionist, chef, housekeeper, waiter, concierge... (this list goes on and on), what unites all these roles is the way pay is structured.

If you're scratching your head wondering how pay works in hospo, here's your ultimate guide. 

Minimum Wage

Minimum wage? You might have heard of her but what does she even mean? 

Essentially, in Aus, the Fair Work Commission sets minimum wage rates for all employees, including those in the hospitality industry. These rates are reviewed annually and typically increase in July each year (hallelujah).

The minimum wage can also vary depending on the employee's age and experience.

Casual vs Full-Time vs Part Time Employment

Hospo roles offer different employment arrangements. Casual, full-time, and part-time. Each of these has its own pay structure:

Casual Employees: Casual employees receive a higher hourly rate compared to full-time or part-time employees. They have no guaranteed hours of work and usually work irregular hours instead of a fixed roster. Casual employees are paid on an hourly basis and receive a 25% loading on the equivalent full-time/part-time hourly rate to make up for them for having less job security and paid leave entitlements.

Full-Time Employees: Full-time employees work a set number of hours each week but it has to be over 38 hours. They're also entitled to paid leave like annual leave and sick leave. They receive a fixed salary, which is often negotiated as an annual package. Full-time employees earn a consistent wage based on their ordinary hours of work. 

Part-Time Employees: Part-time employees work regular hours but fewer than full-time employees ie. fewer than 38 hours per week. Once the hours per week have been agreed upon, the employee’s hours can't really be arbitrarily reduced or changed.

Overtime

Hospitality roles can involve irregular hours, including evenings, weekends, and holidays. Part-time and full-time employees are eligible for overtime pay when they work above their normal work hours.

Penalty Rates

Penalty rates are applied when employees work during less desirable hours, like on weekends, late nights and public holidays like Boxing Day, Anzac Day... etc. The exact penalty rates vary depending on the specific award or enterprise agreement that applies to the workplace. 

Tips

I mean, we're not in America so tipping isn't obligatory. But in some fancier restaurants or bars, tipping may be more common. Tips will never replace an employee's wages here though, it's just a fun reward! 

So lads 'n lords, there you have it. Now that you know a little bit more about the pay structure in hospitality roles, you can make sure you're being compensated fairly as well as figure out what position suits you! Go forth and conquer.