March 31, 2026 | Salon Operations & HR

Hair and Beauty Industry Award [MA000005]: 2026 Payroll Guide

Key Takeaways

Identify the correct Award Level (1–6) for every staff member.
Understand the difference between Casual and Permanent (Part-time/Full-time) entitlements.
Ensure you're paying Penalty Rates correctly for late nights, Saturdays, and public holidays.

In 2026, Fair Work compliance is non-negotiable. Small mistakes in payroll can lead to massive "back-pay" liabilities and legal headaches. For Australian salon owners, the Hair and Beauty Industry Award (MA000005) is the rulebook you must live by.

This guide breaks down the essential payroll rules so you can keep your stylists happy and your salon safe from audits.

1. The Award Levels Explained

Every employee must be classified into one of the 6 award levels. Paying a Senior Stylist as a Junior is a shortcut to an underpayment claim.

Level 1: An employee who performs general duties (e.g., salon assistant, shampooing).
Level 3: A fully qualified hairdresser or beautician (the "Senior" in most salons).
Level 6: A salon manager responsible for staff and operations.

2. Casual Loading vs. Leave Entitlements

Australian salons rely heavily on casual staff. In 2026, the Casual Loading (usually 25%) is paid in lieu of paid leave (like annual or sick leave). If you move a long-term casual to part-time, you must lower their hourly rate but start accruing their leave benefits.

⚠️ Warning: Even if a staff member *says* they want to be paid a "flat rate" to skip the paperwork, you cannot legally pay them less than the award minimums for their level and their hours.

3. Penalty Rates: When to Pay Extra

The salon industry thrives on "special" hours—Saturdays and late-night Thursdays. The award mandates pay increases for these times:

Saturdays: Permanent staff get a 133% rate; casuals get a 150% rate.
Sundays: 200% for all staff.
Public Holidays: 250% for permanent; 275% for casuals.

4. Allowances: The Hidden Costs

Don't forget the "extras." The Hair and Beauty Award includes several mandatory allowances:

Tool Allowance: If you don't provide all the tools, you must pay a weekly tool allowance to your stylists.
Laundry Allowance: If staff are required to wear and wash their own uniform.
Meal Allowance: Only applicable if staff work overtime without 24 hours notice.

Is Your Payroll Audit-Proof?

Our payroll experts help salon owners set up automated Single Touch Payroll (STP) that is hard-coded with the latest Award rates. Never worry about an underpayment again.

Check My Payroll Compliance