Australian Penalty Rates: Retail Industry Update (Nov. 2018)

9 November, 2018 Monic Del Rosario

The Fair Work Ombudsman recently updated penalty rates for staff under the Retail Award, namely:

  • Saturday rate for casuals: Casuals are now entitled to an additional 15% for all work performed on a Saturday or a 5% increase from previous rates.
  • Weekday evening penalty rates for casuals: Casual workers are now entitled to the evening penalty allowance, which is an additional 5% for all work performed after 6pm. This penalty was previously only available to full time and part-time employees.
  • Sunday shiftwork rate for all employees: Casual shiftworkers will now receive 220% for ordinary hours worked on a Sunday or a 5% decrease from previous rates. While full time and part-time shiftworkers will now receive 195% for ordinary hours worked on a Sunday or a 5% decrease from previous rates.

Changes are going to be phased in the next 2-3 years. Below is the schedule of rollout, according to FWO:



Penalty rates ensure that employees are compensated when working shifts outside the standard working hours. This includes weekends, public holidays, overtime, late night shifts, and early morning shifts. According to the FWO website, penalty rates are affected by the following factors:

  1. Salary payments
  2. Employment contracts
  3. Individual flexibility arrangements (IFAs)
  4. A guarantee of annual earnings

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Tanda Penalty Rates Retail Nov 2018
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