Employers can choose to pay a loaded rate to some full-time adult employees instead of certain entitlements under the Hospitality Award.

For information on who can be paid loaded rates and what entitlements they cover, please see Loaded rates under the Hospitality Award.

Loaded rate amount

The award sets minimum loaded rate percentages for several different patterns of work. Each pattern of work sets a specific range of days and the maximum weekly hours that the loaded rate includes.

The loaded rate is only paid for the range of days and the maximum weekly hours included in the pattern of work.

Any applicable all-purpose allowance must be added to the minimum hourly rate before the loaded rate percentage is applied.

Our Pay and Conditions Tool includes minimum loaded rates and lets you save and download pay rates. Loaded Rates are also included in our Pay Guides for the Hospitality Award.

Loaded Rate Parameters

The award sets out certain rostering requirements for employees receiving loaded rates called Loaded Rate Parameters.

The loaded rate only applies to work rostered in accordance with the Loaded Rate Parameters. These are:

• the roster cycle must operate weekly starting on Monday
• Monday to Friday: a maximum of 11.5 hours per day or shift (not including meal breaks), rostered between 7am and 12am (midnight)
• Saturday: a maximum of 10 hours (not including meal breaks)
• Sunday: a maximum of 10 hours (not including meal breaks)
• split shifts with a break of 3 hours or less

Work outside the loaded rate parameters or included pattern of work

Employees receiving loaded rates can work outside the loaded rate parameters or work pattern if needed. Overtime or regular award rates and penalties apply to work outside or in excess of the loaded rate work pattern.

They get overtime for any work that’s:

• more than the daily and/or shift maximum hours
• outside their Loaded Rate Range of Days
• more than the Loaded Rate Maximum Weekly Hours each week.

Example: working more than loaded rate maximum weekly hours – overtime

Mario is on a loaded rate arrangement to work a maximum of 40 weekly hours Monday to Friday.

Due to unexpected demand, Mario’s employer asks him to work an extra 5 hour shift on Saturday. Mario agrees.

Mario’s employer explains that because Mario is working an additional 5 hours over the 40 weekly hours under the loaded rate arrangement, he gets overtime based on his ordinary rate (not on his loaded rate).

For his 5 hour shift on Saturday, Mario gets paid 200% of his ordinary hourly rate for each hour worked.

For work outside the loaded rate parameters or work pattern that isn’t overtime, the appropriate award penalty or allowance rate applies.

To calculate penalty and allowance amounts, use our Pay and Conditions Tool.

Example: working an early split shift with a long break – penalty and allowance

Terry has a loaded rate arrangement to work a maximum of 45 hours per week Monday to Saturday.

His employer needs him to work from 6am to 9am and from 2pm to 5pm on Tuesday. He doesn’t work more than 45 hours this week.

The time from 6am to 7am is outside the Loaded Rate Parameters but isn’t overtime. Terry is paid his ordinary rate (not the loaded rate) plus the penalty rate for work between midnight and 7am for this hour.

Terry is paid his loaded rate for the other 5 hours in the split shift.

The break in Terry’s shift on Tuesday is more than 3 hours. The allowance for a break in a split shift of 2 to 3 hours is already included in his loaded rate. Terry is paid the difference between that allowance and the allowance for a break in shift of more than 3 hours.

Find out more about loaded rates in the Hospitality Award:

• Loaded rates under the Hospitality Award
• Making a loaded rate arrangement under the Hospitality Award