The Hair and Beauty Industry Award 2020 establishes minimum wages, penalty rates, and work conditions for employees. It outlines classification levels, base and casual rates, overtime, and public holiday pay, fair remuneration and consistent standards. It supports fair pay and protects workers Together
Annual Wage Review and Rate Adjustments (2024-2025)
The Fair Work Commission’s 2024‑25 Annual Wage Review, announced on 3 June 2025, introduced a 3.5 % increase in the Hair and Beauty Industry Award 2020. The adjustment was formalised on 1 July 2025, replacing the previous clause 17.1 table with a new classification schedule. The revised table lists each employee level, the minimum weekly rate for full‑time staff, and the corresponding minimum hourly rate. This change aligns the award with the broader industry wage trend and ensures that base pay reflects current economic conditions. The updated rates are published in the Fair Work Commission Pay Guide (MA000005) and are enforceable from the first pay period following the effective date. Employers must update payroll systems and contracts to reflect the new figures immediately upon commencement of the new pay cycle.
The review process involved consultations with industry bodies, unions and employers, ensuring the award remains competitive while protecting workers’ rights. The 3.5 % uplift translates to an additional $12.45 per week for a full‑time employee at Level 1, and $15.50 for a Level 3 worker, based on the updated weekly rates. Employers must adjust payroll systems by 1 July 2025, and any failure to comply may result in penalties under the Fair Work Act. The Commission clarified that penalty rates for overtime and public holidays remain unchanged for this cycle. These adjustments aim to balance fair wages with industry sustainability. These adjustments will be reflected in the next payroll cycle.
Classification Levels and Pay Scales Overview
The Hair and Beauty Industry Award 2020 defines a structured hierarchy of classification levels to ensure transparent remuneration across the sector. Each level corresponds to a specific set of duties, experience, and responsibility, ranging from Level 1 (entry‑level technicians) to Level 5 (senior specialists and managers). The award specifies minimum weekly and hourly rates for full‑time employees, as well as base and casual rates for part‑time and casual staff. In addition, it outlines penalty rates for overtime, Sunday, and public holiday work, ensuring that workers receive appropriate premium pay for non‑standard hours. The classification table is updated annually during the Fair Work Commission’s wage review, reflecting economic changes and industry standards. Employers must reference the latest table in MA000005 to calculate wages accurately and maintain compliance with statutory obligations. The table also includes provisions for apprentices, who progress from Year 1 to Year 2 classifications, and for part‑time employees, who must have an agreed regular pattern of work at the time of engagement. By adhering to these structured pay scales, businesses can provide fair compensation, attract and retain talent, and uphold the integrity of the industry’s wage framework. The award also delineates the progression path for employees, allowing them to advance through levels as they acquire additional skills and responsibilities. Each level has defined competencies and training requirements, ensuring that remuneration aligns with expertise. The classification structure supports consistent wage determination across all employers, reducing wage disparities and promoting fairness. The award’s pay scales are designed to be flexible, allowing employers to offer additional allowances or bonuses on top of the minimum rates, provided they do not undermine the statutory minimums. Compliance with the classification system is mandatory, and failure to correctly classify employees can result in penalties and back payment liabilities. Employers are required to review employee classifications annually, especially when roles change or when employees complete training milestones. The Fair Work Commission provides guidance on how to assess whether an employee meets the criteria for a higher level, including documentation of duties, skill assessments, and performance reviews. Proper classification ensures that employees receive the correct base pay, overtime rates, and penalty rates, and it also influences eligibility for certain benefits such as leave entitlements and training allowances; By maintaining accurate classification records, employers can demonstrate compliance during audits and avoid disputes over wage determinations. In summary, the classification levels and pay scales form the backbone of the Hair and Beauty Industry Award, ensuring that every employee is remunerated fairly based on their role, experience, and contribution to the industry.
Base Hourly Rates by Level (2026)
The 2026 base hourly rates for the Hair and Beauty Industry Award are set to reflect the latest wage review and cost‑of‑living adjustments. The rates are tiered by classification level, ensuring that each role receives a fair minimum. The table below lists the current base rates for full‑time employees, excluding any penalty or overtime premiums. Employers must use these figures as the foundation for all pay calculations and must update payroll systems accordingly; The rates are effective from 1 July 2026 and will be reviewed annually by the Fair Work Commission. The table is as follows:
Level 1: $27.81 per hour
Level 2: $30.12 per hour
Level 3: $32.43 per hour
Level 4: $34.74 per hour
Level 5: $37.05 per hour
These figures represent the minimum base pay and do not include casual loading or penalty rates for Sunday and public holiday work. They are designed to provide a stable wage floor for all employees, regardless of part‑time status, and form the basis for calculating overtime and penalty premiums. Employers should consult the full award text for additional clauses on leave entitlements, training allowances, and other employment conditions. The base rates are indexed to the national wage index and are intended to keep pace with inflation, ensuring that workers in the hair and beauty sector receive a living wage that reflects the economic climate of 2026; Compliance with these rates is mandatory, and failure to pay the correct base rate may result in penalties under the Fair Work Act. Employers are encouraged to review their payroll systems and employee classifications to ensure full alignment with the 2026 award rates. Refer to MA000005 for calculations.! See text!!!
Casual Hourly Rates by Level (2026)
The 2026 casual hourly rates for the Hair and Beauty Industry Award are set by applying the standard casual loading to the base rates. The loading reflects the lack of benefits such as paid leave and job security. The minimum casual rates that employers must pay, effective from 1 July 2026, are as follows: Level 1: $34.76 per hour; Level 2: $37.65 per hour; Level 3: $40.54 per hour; Level 4: $43.43 per hour; Level 5: $46;31 per hour. These rates form the base for calculating any penalty or overtime premiums. Employers must use these figures for all casual employees and adjust payroll accordingly. Failure to pay the correct casual rate may result in penalties under the Fair Work Act. For full award details, refer to MA000005 and the Fair Work Commission pay guide. The rates are indexed to the national wage index and are intended to keep pace with inflation, ensuring that casual workers receive a living wage that reflects the economic climate of 2026. Employers are encouraged to review their employee classifications and confirm that all casual staff are paid at the correct level. Compliance with these rates is mandatory, and employers must update payroll systems to reflect the 2026 award rates. The casual loading is designed to compensate for the lack of benefits and provide a fair remuneration for casual workers in the hair and beauty sector. Employers should consult the award text for additional clauses on leave entitlements, training allowances, and other employment conditions. The rates below are the minimum casual rates that employers must pay, effective from 1 July 2026, and they must be applied consistently across all casual positions. Employers should also maintain accurate records of hours worked, shift patterns, and any applicable penalty rates to ensure audit readiness. The award requires that casual employees receive the correct loading for all hours worked, including public holidays and Sundays, which are paid at 2.5× and 2× respectively. Employers must also ensure that casual employees are not misclassified as full‑time or part‑time, as this would affect their entitlement to benefits and loading. The award provides for a maximum of 38 hours per week for full‑time employees, but casuals may work more hours without penalty, provided the loading is applied. Employers should review the award annually to stay compliant with any changes to the loading or base rates. The 2026 rates are effective from 1 July 2026 and will remain in force until the next annual review. Employers are advised to consult the Fair Work Commission pay guide (MA000005) for detailed calculations and examples. All employers must ensure that their payroll systems are updated to reflect these rates and that any discrepancies are corrected promptly to avoid potential penalties or legal action.
Overtime Pay Rates and Conditions
The Hair and Beauty Industry Award specifies that overtime is payable for hours worked beyond the standard 38‑hour week. The calculation is based on the award’s minimum weekly rate of $918.60. To determine the overtime rate, divide $918.60 by 38 to obtain the ordinary hourly rate, then multiply that figure by the number of ordinary hours prescribed for a full‑time employee under the award. Overtime is paid at a premium rate, typically 1.5 times the ordinary hourly rate, unless a higher penalty rate applies for Sunday or public holiday work. Employers must record all overtime hours and apply the correct premium. Failure to pay the appropriate overtime premium can result in penalties under the Fair Work Act. The award also requires that overtime be paid within the same pay period as the hours worked, unless otherwise agreed in writing. Overtime should be clearly itemised on employee pay slips, showing the base rate, the overtime premium, and the total amount earned. Employers are encouraged to review their payroll systems to ensure compliance with the award’s overtime provisions and to avoid disputes. The award’s overtime provisions are reviewed annually, and any changes are published by the Fair Work Commission. Employers should consult the latest award text and the Fair Work Commission pay guide (MA000005) for detailed calculations and examples. All overtime must be authorised by a manager or senior staff member, and employees should be notified of any overtime arrangements in advance. The award also protects employees from excessive overtime, requiring that no employee work more than 10 hours of overtime in a single week without written consent. Employers must maintain accurate records of overtime hours and ensure that all overtime is paid in accordance with the award’s rates and conditions. Employers should also keep a log of all overtime hours worked, including the date, time, and reason for overtime, and provide this log to the Fair Work Commission upon request. This documentation helps verify compliance and protects both employer and employee rights under the award. In addition, employers must ensure that overtime does not exceed 10 hours per week without written consent, and that all overtime is recorded in the employee’s timesheet. This requirement aligns with the award’s commitment to fair work practices and protects employees from excessive workloads. Employers should review their overtime policies annually to ensure ongoing compliance and to address any changes in the award.
Penalty Rates for Sunday and Public Holiday Work
The Hair and Beauty Industry Award 2020 sets penalty rates for work performed on Sundays and public holidays. For Sunday work, employees receive a premium of 2 times their ordinary hourly rate. For public holiday work, the premium is 2.5 times the ordinary hourly rate. These rates apply to all employees, regardless of classification level, unless a specific agreement states otherwise. The penalty rates are calculated by multiplying the employee’s base rate by the applicable multiplier. For example, a Level 1 employee with a base rate of $27.81 per hour would earn $55.62 per hour on a Sunday and $69.53 per hour on a public holiday. Employers must record the date and hours worked on these days and pay the correct premium within the same pay period. Failure to comply can result in penalties under the Fair Work Act. The award also requires that penalty rates be applied to all hours worked, including overtime, on Sundays and public holidays. Employees must be notified of the penalty rate in writing at the time of engagement. The award’s penalty rates are reviewed annually, and any changes are published by the Fair Work Commission. Employers should consult the latest award text and the Fair Work Commission pay guide (MA000005) for detailed calculations and examples. All penalty rate payments must be itemised on the employee’s pay slip, showing the base rate, the penalty multiplier, and the total amount earned. Employers should keep accurate records of all Sunday and public holiday hours worked and the corresponding payments to ensure compliance and avoid disputes. The award’s penalty rates protect employees from working on rest days and holidays without fair compensation, supporting a healthy work‑life balance and fair remuneration practices. Employers should also ensure that any shift changes that result in Sunday or public holiday work are communicated at least 48 hours in advance, allowing employees to plan accordingly. If an employee works a public holiday that falls on a day they normally would not work, the penalty rate still applies, ensuring consistent pay for all holiday work.
Sunday Pay Rates (2x)
Under the Hair and Beauty Industry Award 2020, Sunday work is compensated at a penalty rate of twice the ordinary hourly rate. The calculation is straightforward: multiply the employee’s base hourly rate by 2. This applies to all hours worked on a Sunday, including overtime and any shift that extends into Sunday. For instance, a Level 1 employee earning $27.81 per hour would receive $55.62 per hour on a Sunday. Employers must record the exact date and number of hours worked on Sunday and ensure the correct premium is applied in the same pay period. The award requires that the premium be itemised on the employee’s payslip, showing the base rate, the multiplier and the total Sunday pay. Failure to provide the 2× rate can result in penalties under the Fair Work Act. Employers should also provide written notice of any Sunday work at the time of engagement and keep accurate logs to support compliance. The 2× rate is reviewed annually by the Fair Work Commission; any changes are published in the award text and the Fair Work Commission pay guide (MA000005). All Sunday hours must be paid at the 2× rate, regardless of whether the employee is full‑time, part‑time, or casual. The award also stipulates that the 2× rate applies to any overtime hours worked on Sunday, ensuring that employees receive fair compensation for extended work on rest days. Employers should consult the latest award text for any updates and ensure payroll systems are configured to calculate the 2× Sunday premium automatically!!! and more
Public Holiday Pay Rates (2.5x)
Under the Hair and Beauty Industry Award 2020, any hour worked on a public holiday is compensated at a penalty rate of 2.5 times the employee’s ordinary hourly rate. The award applies to all employees regardless of classification, employment status or shift length. The calculation is simple: multiply the base hourly rate by 2.5. For example, a Level 1 employee earning $27.81 per hour would receive $69.53 per hour on a public holiday. The award requires that the premium be itemised on the payslip and that employers maintain accurate records of the date, time and number of hours worked on the holiday. Employers must provide written notice of any public holiday work at the time of engagement and ensure that the 2.5× rate is applied in the same pay period. The rate is reviewed annually by the Fair Work Commission; any changes are published in the award text and the Fair Work Commission pay guide (MA000005). Failure to pay the 2.5× rate can result in penalties under the Fair Work Act. The award also clarifies that the 2.5× rate applies to overtime hours worked on a public holiday, ensuring employees receive fair remuneration for extended work on a rest day. Employers should consult the latest award text for any updates and configure payroll systems to calculate the 2.5× premium automatically. Compliance with the award protects both employers and employees and promotes a fair and transparent workplace culture. All figures are rounded to two decimal places audit.!!
Part‑Time Employee Work Pattern Requirements
Part‑time employees under the Hair and Beauty Industry Award 2020 must agree upon a regular pattern of work at the time of engagement; The award requires that the pattern be consistent, predictable and not change more than once a month unless a genuine operational reason exists. Employers are obliged to provide a written statement of the agreed hours, specifying the days of the week, the start and finish times, and any rotation or shift changes. The pattern must be reflected in the employee’s contract and in the payroll system to ensure accurate calculation of base, casual and penalty rates. If a part‑time employee works more than the agreed hours, the excess must be treated as overtime and paid at the appropriate overtime rate. Conversely, if the employee works fewer hours than agreed, the employer must not reduce the employee’s base pay unless a written agreement is signed. The award also stipulates that part‑time employees are entitled to the same minimum wage, penalty rates and public holiday entitlements as full‑time employees, pro‑rated to the hours worked. Employers should review the pattern annually and update the employee’s contract if the pattern changes. Failure to comply can result in penalties under the Fair Work Act. All records must be retained for at least five years and be available for audit by the Fair Work Commission. All hours must be recorded accurately. This ensures transparency, protects both parties and promotes a fair and consistent workplace culture.
The Hair and Beauty Industry Award 2020 sets a clear progression for apprentices in the adult beauty therapy stream. Apprentices begin in the 1st‑year classification, earning the base hourly rate for Level 1. Upon completion of the first year, the employee’s classification automatically shifts to the 2nd‑year Apprentice level, which carries a higher hourly rate. This transition occurs on the anniversary of the apprenticeship start date, or on the first day of the new calendar year if the start date falls before 1 January 2014, as specified in the award. The award mandates that the new rate be applied from the first pay period after the change. Employers must update the payroll system and provide written confirmation to the apprentice. The progression is not optional; it is a statutory requirement to reflect the apprentice’s increased skill and experience. Failure to adjust the rate can result in underpayment claims. Apprentices are also entitled to the same penalty rates for overtime, Sunday and public holiday work as full‑time employees, pro‑rated to the hours they work. The award’s pay guide includes the exact figures for each level and the dates of effective change, ensuring compliance and transparency for both parties. Throughout the apprenticeship, the employee receives training and assessments that align with industry standards. The award ensures that the progression from Year 1 to Year 2 is not only a wage increase but also a recognition of the apprentice’s growing expertise and development. and growth now! OK!!!! Thanks!
Calculating Overtime for Non‑38 Hour Weeks
When a full‑time employee works a week that does not total the standard 38 hours, the Hair and Beauty Industry Award 2020 specifies a unique method for calculating overtime. The award provides a fixed “ordinary hours” figure of 38 for a full‑time employee. To determine the overtime rate for a non‑38 hour week, you first divide the annual minimum wage by 38, which yields the hourly base rate for a full‑time employee. Next, multiply that hourly rate by the actual number of ordinary hours worked in the week. The result is the overtime amount that must be paid for the hours beyond the 38‑hour benchmark. This calculation ensures that employees who work fewer than 38 hours are still compensated fairly for the extra hours they provide. Employers must record the exact hours worked and apply the correct multiplier to avoid underpayment. The calculation is straightforward but must be applied consistently across all non‑38 hour weeks to remain compliant with the award’s provisions.
Example calculation for a 40‑hour week (using a placeholder for the annual minimum wage):
- Annual minimum wage: $X
- Hourly base rate: $X ÷ 38 = $Y
- Ordinary hours worked: 38
- Overtime hours: 40 – 38 = 2
- Overtime pay: 2 × $Y × 1.5 = $Z
Employers should round the hourly base rate to the nearest cent and apply the same rounding to the overtime calculation. All overtime must be paid within the same pay period as the hours worked, and records must be kept for at least seven years to satisfy audit requirements. Failure to calculate overtime correctly can result in penalties under the Fair Work Act 2009.
By following this method, businesses ensure accurate, fair, and compliant overtime payments for all employees working non‑standard weeks.
This approach also aligns with the award’s emphasis on equitable remuneration across all working patterns.
All calculations should be reviewed annually to reflect any award amendments.
Fair Work Commission Pay Guide Reference (MA000005)
The Fair Work Commission’s Pay Guide for the Hair and Beauty Industry Award 2020 (MA000005) is the definitive source for minimum wages, penalty rates, and work conditions. It lists the base and casual rates for each classification level, the overtime multiplier of 1.5, Sunday rates of 2.0, and public holiday rates of 2.5. Updated annually, the guide’s latest revision is effective 1 July 2025 and is available as a downloadable PDF on the Fair Work Commission website and the Fair Work Ombudsman portal. Employers can use the interactive tables to calculate ordinary and penalty pay for full‑time, part‑time, and casual employees, ensuring compliance with the award’s provisions.
In addition, the guide outlines the process for reviewing and adjusting pay rates during the annual wage review, the criteria for apprenticeship progression, and the requirements for part‑time work patterns. It also provides guidance on how to apply penalty rates for shift work that falls outside normal hours and how to calculate overtime for part‑time employees who exceed their contracted hours. Employers are encouraged to keep a copy of the guide on hand and to update their payroll systems accordingly.
Employers should also review the guide’s annexes, which detail the calculation of penalty rates for night shifts, unsociable hours, and shift work that falls outside normal hours. The guide emphasises that all pay calculations must be documented and that employees should be provided with a clear pay statement each period. Regular training on the guide’s provisions helps prevent disputes and ensures that the award’s intent is upheld.