Penalty rate changes for casual employees – Hair and Beauty Award

Published 1 November 2021 | Updated 4 November 2021

Penalty rates for casual hair and beauty employees working on weekends will increase starting in January 2022. Find out more.

On 7 October 2021, the Fair Work Commission (the Commission) made a decision external-icon.png that increases Saturday and Sunday penalty rates for casuals under the Hair and Beauty Award.

These changes will be added to the award on 3 November 2021 and the increased rates will be phased in over 2 years. The first round of increased rates start from 31 January 2022.

What’s changing

Casual weekend penalty rates will increase in 5 instalments starting from 31 January 2022 and finishing on 31 December 2023. From 3 November 2021 to 30 January 2022, casuals will continue to be paid their usual weekend penalty rate.

The new rates apply from the date of the increase (for example, 31 January 2022 for the first instalment).

You can find the new rates for the first instalment in our Pay and Conditions Tool and Pay guides.

Currently under the Hair and Beauty Award, a casual’s weekend penalty rate doesn’t include their 25% casual loading. This is changing so that casuals who work weekends are now entitled to be paid a weekend penalty rate that also includes their casual loading.

Get a reminder of each casual weekend penalty rate instalment by subscribing to email updates.

Saturday work

Starting from 31 January 2022, casual employees who works ordinary hours on a Saturday are entitled to be paid a 138% penalty rate (which includes their casual loading).

The penalty rate percentage will increase in further instalments over 2 years as per the following table:

Date Saturday penalty rate percentage (% of ordinary hourly rate)
3 November 2021 to 30 January 2022 133%
31 January 2022 to 29 April 2022 138%
30 April 2022 to 30 December 2022 143%
31 December 2022 to 29 April 2023 148%
30 April 2023 to 30 December 2023 153%
From 31 December 2023 158%

Example: Working Saturdays – From 31 January 2022 to 29 April 2022

Ron is a sole trader who operates a barbershop.

Ron’s casual employee Dianne works on weekends when it gets busy.

Previously, when Dianne worked on Saturdays she was paid the Saturday penalty rate of 133% of the ordinary hourly rate for a full-time employee at her level.

From 31 January 2022, when Dianne works on Saturdays, Ron needs to pay her a Saturday penalty of 138% (inclusive of her casual loading). This will increase again from 30 April 2022, 31 December 2022, 30 April 2023 and 31 December 2023.

Sunday work

Starting from 31 January 2022, casual employees who work ordinary or overtime hours on a Sunday, need to be paid a Sunday penalty rate of 205% (including casual loading).

The penalty rate percentage will increase in further instalments over 2 years as per the following table:

Date Sunday penalty rate percentage (% of ordinary hourly rate)
3 November 2021 to 30 January 2022 200%
31 January 2022 to 29 April 2022 205%
30 April 2022 to 30 December 2022 210%
31 December 2022 to 29 April 2023 215%
30 April 2023 to 30 December 2023 220%
From 31 December 2023 225%

Example: Working Sundays – Overtime – From 31 January 2022 to 29 April 2022

Sakura works casually at a hair salon.

It’s the first weekend of February in 2022. Sakura’s employer, Asher, asks Sakura if she can work from 3pm until 7pm on Sunday. Sakura agrees.

Asher explains that Sakura will be paid 205% (inclusive of her casual loading).

Because this penalty applies for all ordinary or overtime hours worked on Sundays, Sakura will be paid 205% for all hours worked between 3pm and 7pm.

Impact of annual wage changes

Every year, the Commission reviews the national minimum wage and all minimum award wages. Any changes to the national minimum wage and award wages are usually announced around 1 July each year.

Depending on the changes decided by the Commission, award pay rates could go up or down. Employers and employees covered by the Hair and Beauty Award need to factor in these annual wage changes on top of the increases to casual weekend penalty rates.

Subscribe to email updates and we’ll keep you updated about annual wage changes.

More information

Pay rates

You can calculate the new pay rates (including overtime and penalty rates) using our Pay and Conditions Tool.

We also have the new rates in our Pay guides.

Workplace conditions

Check what entitlements apply for hours of work, breaks and rosters for the Hair and Beauty at Hours of work, breaks and rosters. Select the hair and beauty industry filter for more information.

Keeping up-to-date

Keep on top of each casual weekend penalty rate instalment by subscribing to email updates.

Decision

To learn more about the changes, you can read the Commission: