Retail Award: Pay Rates & Key Rules (2026)
The retail award sets minimum pay and conditions for most retail employees in the national system, and modern award minimum rates rose 4.75% from the first full pay period starting on or after 1 July 2026. Your exact rate depends on your classification level, your age, whether you are full-time, part-time or casual, and the day and time you work.
This guide explains the retail award, casual retail rates and the Level 2 classification, and shows you where to find the current dollar figures. It is part of our wider guide to modern awards explained.
- The Fair Work Ombudsman publishes a free pay guide for the retail award, and you should use it for the current rate for your level, age and employment type.
- Modern award minimum rates rose 4.75% from the first full pay period starting on or after 1 July 2026, so a rate that was never updated is probably wrong.
- Casuals under most awards receive a 25% casual loading on top of the base rate, and the award sets any penalty rates for evenings, weekends and public holidays.
- Employers must give payslips within 1 working day of payday and keep time and wage records for 7 years.
Retail award: rates and rules
The award sets the lowest lawful rate, and you cannot contract below it. The table shows the structure of the rules, since the dollar rates sit in the pay guide.
| Item | What the rule says | Where to find the figure |
|---|---|---|
| Classification level | Retail employees are placed in a level based on their duties and skills, and each level has its own minimum hourly rate. | Pay guide for the award |
| Age and junior rates | Junior employees are paid a percentage of the adult rate for their classification, and the percentage depends on age. | Pay guide for the award |
| Casual loading | Casual loading is 25% under most awards, and it compensates for leave and notice casuals do not receive. | Pay guide, or $33.05 per hour if no award applies |
| Penalty rates | Higher rates for evenings, weekends and public holidays are set by the award, not by national law. | Pay guide, under penalty rates |
| Annual increase | Modern award minimum rates rose 4.75% from the first full pay period starting on or after 1 July 2026. | Pay guide, effective from the same date |
| Allowances | Some tasks, such as handling cash or supervising, can attract extra payments on top of the hourly rate. | Pay guide, under allowances |
Who the retail award applies to
The retail award covers most employees in the national system who work in retail, but not all of them. Check coverage first.
| Employment type | How the retail award applies |
|---|---|
| Full-time | Paid the hourly rate for the classification, for up to 38 ordinary hours a week, plus penalty rates for qualifying hours. |
| Part-time | Same hourly rate as a full-timer, with agreed hours and minimum shift length set by the award rather than the National Employment Standards. |
| Casual | Paid the base rate plus the casual loading, plus any penalty the award requires for the day or time worked. |
| Junior | Paid a percentage of the adult rate for the classification, with the percentage based on age. |
| Apprentice or trainee | Paid under the apprentice or trainee rates, which depend on the arrangement and stage. |
| Labour hire worker | Employed and paid by the provider. The provider must apply the right award, and a Fair Work Commission order may require the same pay as host staff. |
Other industries have their own awards. See our guides on the fast food award, the mining award and the cleaning award, and read about enterprise agreements if your workplace has one.
Casual retail rates
Casual retail rates are built from the classification base rate plus the loading. The dollar amount depends on the level and age, so use the pay guide.
- Start with the base hourly rate for the classification level in the Fair Work Ombudsman pay guide for the retail award.
- Add the casual loading, which is 25% under most awards, unless the pay guide shows a combined casual rate already.
- Add any penalty rate for evenings, weekends or public holidays that the award requires for the hours worked.
- Check that the result is not below $33.05 per hour, which is the casual minimum if no award applied.
- Keep roster and timesheet records, because a casual rostered across two stores in one week can easily be shorted on penalty hours.
Retail employee Level 2 classification
Retail employee classifications run in levels. Level 2 is the second level in the structure, and the award describes the duties that belong at each level.
- Read the award definition for Level 2 and compare it with the duties the employee really performs each day.
- Find the Level 2 hourly rate in the Fair Work Ombudsman pay guide, and note whether it is the adult, junior or casual rate.
- Record the classification in the employment contract or letter of offer, so everyone starts with the same understanding.
- Review the level whenever duties change, such as when a worker starts supervising others or handling more complex tasks.
- Raise a classification dispute in writing with your employer first, then with the Fair Work Ombudsman if it is not resolved.
How to calculate pay under the retail award
Start with the pay guide, not an old payslip. A Monday-morning payroll check right after the 1 July change will catch most errors.
- Confirm that the retail award covers the business and that no enterprise agreement replaces it.
- Identify the employee's classification level, age and employment type.
- Open the Fair Work Ombudsman pay guide and find the hourly rate that applies from 1 July 2026.
- Add the casual loading if the employee is casual, and apply the correct penalty rate to the hours worked at penalty times.
- Multiply by the hours, then add allowances and the 12% super guarantee on ordinary time earnings.
- Compare the total with the payslip, and fix any shortfall in the next pay run.
| Worked example (structure) | Figure | Where it comes from |
|---|---|---|
| Base rate for the level | Hourly rate in the pay guide | Retail award, effective from 1 July 2026 |
| Casual loading | 25% on the base rate | Most awards, unless the pay guide shows a combined rate |
| Penalty hours | Percentage in the pay guide | Retail award |
| Super on ordinary time earnings | 12% | Super guarantee for 2026-27, paid within 7 business days of payday |
Employer obligations under the retail award
Employers need to prove the rate as well as pay it.
- Pay at least the award rate for every hour worked, including training, cash-up time and stocktake shifts.
- Issue a payslip within 1 working day of payday showing rates, hours, loadings, super and deductions.
- Keep employee time and wage records for 7 years, and keep rosters and signed timesheets together.
- Report payroll to the ATO through Single Touch Payroll on or before each payday.
- Pay super with wages so it reaches the employee's fund within 7 business days of payday.
- Update rates in payroll for the first full pay period starting on or after 1 July each year, and note who checked the change.
Worker rights under the retail award
If you think your pay is short, you can usually sort it out in a few steps.
- Collect your payslips, roster and timesheets, plus your letter of offer showing your classification.
- Check the Fair Work Ombudsman pay guide for your award and compare the rate, loading and penalties with your payslip.
- Raise any difference in writing with your employer, give the dates and ask for a corrected payslip and back pay.
- Keep a copy of every message and the replies you get.
- If it is not fixed, contact the Fair Work Ombudsman for free advice through the Fair Work Infoline on 13 13 94.
Common mistakes to avoid with the retail award
- Using the wrong award because a business sells food, cleans or mines, when a different award may apply.
- Missing the 1 July update, so every rate in payroll is out of date.
- Paying casuals a flat rate that does not clearly cover the 25% loading and the penalties.
- Choosing a classification by job title instead of the duties the person actually does.
- Ignoring junior or apprentice rates, or applying an adult rate without checking age.
- Not keeping rosters and timesheets for 7 years, which leaves nothing to rely on in a pay dispute.
Retail award FAQ
What is the retail award?
It is a modern award that sets minimum pay and conditions for most retail employees in the national system. It includes classification levels, junior rates, casual loading, penalty rates and allowances. Find the current rates in the free Fair Work Ombudsman pay guide for the award.
What are casual retail rates?
Casual retail rates are the base rate for the classification plus the casual loading, which is 25% under most awards, plus any penalty the award sets. Check the pay guide for the exact figure. If no award applied, the casual minimum would be $33.05 per hour.
What is a retail employee Level 2?
Level 2 is the second level in the retail award classification structure. The award describes the duties at each level, and each level has its own hourly rate. Compare the duties with the award, then read the rate from the pay guide.
Does the retail award cover fast food and other retail-like jobs?
Not always. Some workplaces that sell food or goods are covered by a different award or an enterprise agreement. Check the coverage clause in the award or call the Fair Work Infoline on 13 13 94 to confirm which one applies to the job.
Next step: check the retail award for your team
Confirm the award, classification and employment type for each worker, then compare payroll with the pay guide before the next pay run. At TQN Personnel, we place and pay labour hire workers across Sydney and can help you find reliable workers for your site. This is general information, not legal, tax or financial advice, so check the Fair Work Ombudsman, the ATO or an employment lawyer for your situation. For the national floor beneath every award, read our minimum wage australia guide and our super guarantee guide.