Payroll entitlements for full time & part time cafe / restaurant staff in Australia.

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Full time employees are employees who are hired on a permanent basis and usually work 38 hours a week. Part time employees are hired on a permanent basis but work less than 38 hours a week and are entitled to the same benefits as full time employees but on a pro rata basis.

Payroll entitlements summary below:

Annual Leave

Full time employees are entitled to 4 weeks of annual leave per year, this equates to 20 working days or 152 hours per year.

This annual leave is accrued at 2.92 hours per week.

Part time employees are entitled to the same annual leave but on a pro rata basis. Example if you work 3 days a week you will be entitled to 60% (3days/5days) of the annual leave entitlement which equates to 91.2hours per year.

Sick Leave

Full time employees are entitled to 10 days up front sick leave each year. Part time employees accrue sick leave each week at a rate of 1/26th of their ordinary earnings.

Example, if you worked 3 standard days a week (22.8hours) you would accrue 0.877 hours per week.

Working: 1/26 = 0.0385 x 22.8 = 0.877h

Minimum Pay Rates

Level 1 food and beverage = $20.06 hourly

Level 2 food and beverage = $20.82 hourly

Level 3 food and beverage = $21.54 hourly

Overtime rates

Fulltime employees are paid overtime on any hours worked in excess of 38 hours per week. This can be averaged out over a 4 week period. Overtime must also be paid if a fulltime employee works for over 11.5 hours in one day.

Part time employees are entitled to overtime rates for any hours worked outside their scheduled hours, any hours over 11.5 per day and any hours over 38h per week.

Overtime is paid at the following rates:

Mon-Fri first 2 hours = 1.5x

Mon-Fri after 2 hours = 2x

Saturday first 2 hours = 1.75x

Saturday after 2 hours = 2x

Sunday all overtime worked = 2x

Rostered day off, all overtime worked = 2x

Penalty Rates

Public Holiday = Normal rate x 2.25

Monday to Friday from 10pm-Midnight = Normal rate plus $2.31 per hour

Monday to Friday from Midnight - 6am = 100% plus $3.46 per hour

Saturday = Normal rate x 1.25

Sunday = Normal rate x 1.5

Note: If penalty / overtime rates collide with each other then the employer will pay the higher of the two, they will not pay both. Example If you were working hours between 10pm and midnight on a Tuesday but at this point you had already worked 11.5 hours then you would be paid at the overtime rate instead of the extra $2.31 per hour for the 'Late work rate' as the overtime rate is higher.

Breaks

Employees in the restaurant industry are entitled to the following breaks:

If working between 5 and 10 hours - You are entitled to an unpaid meal break of half an hour. This should be taken after the first hour of work and before the 7th hour of work. If your meal break is scheduled for after 5 hours from when your shift started you are entitled to an additional 20min paid break.

If you work more than 10 hours - You are entitled to an unpaid meal break of half an hour. This should be taken after the first hour of work and before the 7th hour of work. You are also entitled to 2 additional 20 minute paid rest breaks.

Need help with Payroll as an employee or employer?

Contact CTK Accounting to consult with a professional CPA and tax agent to review and implement payroll entitlements and rates.

CTK Accounting are Wollongong based accountants and professional bookkeeper.

Email: ctkaccounting.com.au

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