I’ve seen reports that some people complain about Public Holiday surcharges in Australia.
20% Public Holiday surcharges.
For those people that don’t understand why restaurants charge extra on Public Holidays, the reason is actually very simple.
It is compulsory for their staff to receive higher wages on public holidays.
This cost is either passed on to the customer, or the restaurant does not open on Public Holidays.
The minimum hourly wage for an adult restaurant worker is:
- $21.38 on Monday to Friday.
- $26.73 on Saturday.
- $32.07 on Sunday.
- $48.11 on Public Holidays.
The restaurants, that do open on Public Holidays, are paying 125% higher than the weekday pay rate.
But, they only charge the customers an extra 15% or 20%.
If a restaurant has 10 employees, each working 8 hours, their extra wages cost, for just one public holiday day, would be at least $2,138
If they can’t get some of that back with a 20% surcharge, then they may choose not to open, rather than operating at a loss.
Many Cafes and Restaurants employ staff on a casual basis, and their wages are even higher.
The casual rate of pay includes extra to cover holiday pay and sick pay that is accrued during the hours that they work.
The minimum hourly wage for a Casual adult restaurant worker is:
- $26.73 on Monday to Friday.
- $32.07 on Saturday.
- $32.07 on Sunday.
- $53.45 on Public Holidays.