Decoding the Retail Award rate: everything you need to know

According to the Fairwork Ombudsman the Retail Award is the official document that outlines the minimum wage rates and working conditions for employees working in the retail industry in Australia. There are many other awards in Australia, this award specifically sets the standard for the retail sector. This ensures that employees are treated fairly, and have access to fair work practices. As well as maintaining that they are paid appropriately for their work. This Legal Kitz blog will cover all you need to know about the Retail Award.

What is the retail award rate in Australia?

The current Retail Award is known as the General Retail Industry Award 2020, and it covers all retail employers and employees in Australia, including those who work in supermarkets, department stores, pharmacies, and specialty retail stores.

The retail award rate in Australia varies depending on the level of experience, qualifications, and job roles. The Pay Guide for the General Retail Award Rate can be found here. An adult full-time employee who works a standard 38-hour week under the Retail Award must receive a minimum weekly wage of $772.60, which is roughly an hourly rate of $20.33.

A 21 year old employee, who is not an apprentice or trainee, is entitled to a percentage of the adult rate. Such as an 18 year old employee must be paid at least 60% of the adult rate. This means that their minimum wage is $465.30 per week or $12.24 per hour.

Employees are entitled to additional penalty rates, if they work outside of standard hours, such as weekends, nights or public holidays. An adult employee, for example, who works on a Sunday must receive a 50% increase on top of their base hourly rate.

Casual retail employees are also entitled to higher wage because they do not receive benefits such as sick leave or annual leave. Under the Retail Award, casual employees are entitled to an additional loading of 25% on top of their hourly rate.

This also sets out minimum standards for working conditions, including breaks, hours of work, and leave entitlements. Retail employees are entitled to a 30-minute unpaid meal break after working five hours. With a minimum of four weeks of annual leave per year for full-time employees.

In addition to the minimum wage and working conditions set out in the Retail Award, some employers may offer additional bonuses, incentives, or perks such as staff discounts or flexible working arrangements.

The Retail Award is an essential document that outlines the minimum wage rates and working conditions for retail employees in Australia. It is imperative that employees are treated fairly and are paid appropriately for their work, and creates an outline for retail employers in Australia to follow.

What are retail award rate in Australia 2022?

As of 1 November 2021, the minimum retail award rate for adult full-time employees in Australia is $20.84 per hour. This rate applies to employees who are 21 years old or over. For adult casual employees, the minimum rate is $26.05 per hour, which does also include a 25% loading fee, this is to act as a form of compensation for the lack of job security. The minimum wage rate for junior employees depends on their age and level level of experience. It is important to note that these are minimum wage rates, and employers are able to pay their employees above this rate if they desire. Employers must comply with other employment conditions set out in the award.

What are the new award rates for 2022?

The new retail award rates for 2022 in Australia were updated from 1 November 2021. The General Retail Industry Award 2020, sets out the minimum employment conditions for employees in the retail industry, including the minimum wage rates. Which have increased in line with the annual minimum wage review.

What is the general retail award rate increase for 2022?

As of 1 November 2021, the general retail award rate increase in Australia is 2.5%. 

Who is covered under the general retail industry award?

The retail award rate is for casual, part-time and full-time employees who work in the retail industry, regardless of their level of experience or qualifications. This means that all retail workers in Australia are covered by the General Retail Industry Award, and are entitled to the minimum pay rates, working conditions, and entitlements set out in the award.

The award also covers employers who operate in the retail industry, including small and large businesses. It sets out the minimum standards that employers must comply with to ensure that their employees are treated fairly and have access to fair work practices.

It’s important for both employees and employers in the retail industry to understand their rights and obligations under the General Retail Industry Award. Employers must ensure that they comply with the minimum standards set out in the award, while employees should be aware of their entitlements and ensure that they are being paid and treated fairly.

What the different levels are of a retail employee?

The General Retail Industry Award 2020 outlines four different levels of retail employees: Level 1, Level 2, Level 3, and Level 4. These levels are based on the employee’s level of skill, experience, and responsibilities. The retail award levels are as follows:

Level 1 employees are those who are new to the retail industry or have limited experience. They typically perform basic tasks such as stocking shelves, cashiering, and customer service. They are also responsible for following company policies and procedures.

Level 2 employees are those who have some experience in the retail industry and are able to perform more complex tasks. They may have more responsibilities such as supervising other employees, handling customer complaints, and managing stock levels.

Level 3 employees are those who have a high level of skill and experience in the retail industry. They are often responsible for managing a department or store and may oversee the work of other employees.

Level 4 employees are those who have the highest level of skill and experience in the retail industry. They are often responsible for managing multiple stores or departments and may have significant decision-making authority.

It’s important for employers to ensure that they pay their employees according to the correct level under the award, as each level has different minimum wage rates and entitlements. Additionally, employees should be aware of their level and ensure that they are being paid and treated fairly according to the level of their skill and responsibilities.

Legal Kitz Business Specialist

Does your business need legal help?

Request a free 30-minute consult with one of our Legal Kitz Business Specialists to get advice on your concerns.

Additionally, our sister company Business Kitz offers over 150+ legally compliant documents, with many being employment related.