Fitness Industry Award Explained: Minimum Wages, Penalty Rates and Casual Loading

If you employ staff at your gym, personal training studio, or fitness centre, there is a good chance they are covered by the Fitness Industry Award 2020 (MA000094). Getting pay wrong under this Award can expose you to back-pay claims, Fair Work penalties, and reputational damage — yet many gym operators are still calculating wages manually and getting it wrong.

This guide breaks down the Fitness Industry Award in plain English: who it covers, how the pay structure works, what penalty rates apply, and how to stay compliant.

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Who Does the Fitness Industry Award Cover?

The Fitness Industry Award 2020 (MA000094) covers employers in the fitness industry and their employees. This includes:

• Gyms and health clubs
• Personal training studios
• Group fitness studios (yoga, Pilates, CrossFit, barre, etc.)
• Martial arts centres
• Dance studios (where health and fitness is the primary focus)
• Swimming schools and aquatic centres (fitness-focused)

The Award covers most front-line employees, including:

• Fitness instructors and personal trainers
• Group fitness instructors
• Gym floor staff and membership consultants
• Receptionists working in fitness businesses
• Gym managers and supervisors

Some employees are excluded — for example, high-income earners above the high income threshold (currently over $175,000 per year including guaranteed earnings) are not covered. Similarly, employees covered by a different Modern Award for their work (for example, a separate cleaning contractor) would not be covered by the Fitness Industry Award.

If you are unsure whether the Fitness Industry Award applies to a particular employee, the Fair Work Commission's Award Finder tool (available at fairwork.gov.au) is the authoritative resource.

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Classification Levels

The Fitness Industry Award uses a classification structure that determines minimum pay rates. Employees must be classified correctly based on their qualifications and responsibilities.

Level 1 — Fitness Instructor/Introductory Employees performing basic fitness instruction under supervision. Typically someone who holds a Certificate III in Fitness or equivalent. No significant independent decision-making is expected.

Level 2 — Fitness Instructor/Personal Trainer An employee holding a Certificate IV in Fitness, or equivalent, who works independently to design and deliver individual fitness programs. Most personal trainers and group fitness instructors sit at this level.

Level 3 — Senior Fitness Instructor/Specialist An employee with higher qualifications or specialist knowledge (for example, a strength and conditioning specialist or remedial exercise specialist), or someone who supervises other fitness staff.

Level 4 — Gym Supervisor/Team Leader Employees responsible for supervising a team of fitness staff or managing a specific function within a fitness centre.

Level 5 — Gym Manager/Centre Manager Employees with broad management responsibilities for a fitness centre, including rostering, hiring, and operational oversight.

Getting the classification right matters. Underpaying an employee because they are classified at the wrong level is a wage theft risk under both the Fair Work Act and, in some states, criminal wage theft laws.

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Minimum Wages

The Fitness Industry Award sets minimum weekly and hourly rates for each classification level. These rates are updated annually following the Fair Work Commission's Annual Wage Review, which typically takes effect on 1 July each year.

As of the most recent Annual Wage Review (effective July 2025), approximate minimum rates under the Fitness Industry Award were:

| Classification | Approx. Minimum Hourly Rate (Adult, Full-Time) | | -------------- | ---------------------------------------------- | | Level 1 | ~$24.50/hr | | Level 2 | ~$25.80/hr | | Level 3 | ~$27.20/hr | | Level 4 | ~$28.60/hr | | Level 5 | ~$30.50/hr |

Important: These figures are indicative only. You must check the current Pay Guide for the Fitness Industry Award on the Fair Work Commission website (fairwork.gov.au) before setting or reviewing pay rates. Rates are updated on 1 July each year.

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Casual Loading

Casual employees must receive a 25% casual loading on top of the applicable minimum hourly rate. This loading compensates for the absence of paid leave entitlements (annual leave, personal leave, public holiday pay, and notice periods).

For example, if a Level 2 fitness instructor earns approximately $25.80/hr as a permanent employee, a casual doing the same work must be paid at least approximately $32.25/hr (25.80 × 1.25).

A key obligation under the Fair Work Act is that employers must provide casuals with a Casual Employment Information Statement (CEIS) when they start, and must offer conversion to permanent employment after 12 months of regular work.

Misclassifying permanent employees as casuals — or failing to pay the casual loading — is one of the most common wage compliance mistakes in the fitness industry.

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Penalty Rates

The Fitness Industry Award applies penalty rates for work performed at certain times. Many fitness businesses operate outside standard Monday-to-Friday hours, which makes this one of the most financially significant Award obligations.

Weekday Evening Penalty Rate

Work performed after a certain time in the evening (typically after 9pm or 10pm on weekdays) attracts a penalty rate loading. This is relevant for gyms that offer late-night sessions.

Saturday Rates

Work performed on Saturdays attracts a higher rate than ordinary weekday hours — typically 125% to 150% of the base rate (time-and-a-quarter to time-and-a-half), depending on the classification level and time of day.

Sunday Rates

Sunday work typically attracts 150% to 175% of the base rate (time-and-a-half to time-and-three-quarters).

Public Holiday Rates

Work on public holidays attracts a significant premium — typically 225% to 250% of the base rate (double-time-and-a-quarter to double-time-and-a-half). This catches many gym operators by surprise, particularly around Christmas, New Year, and Easter trading periods.

Again, always verify the specific penalty rate percentages in the current Award — the exact rates can change with Award variations, and this article reflects general principles, not legal advice. Use the Fair Work Pay and Conditions Tool (PACT) at calculate.fairwork.gov.au to calculate exact entitlements for specific employees.

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Overtime

Employees who work more than their ordinary hours are entitled to overtime rates under the Fitness Industry Award. For most classifications, overtime is paid at:

• Time-and-a-half for the first 2 hours of overtime
• Double time for overtime beyond 2 hours

Overtime provisions also apply to part-time employees who work beyond their agreed contracted hours.

One common issue in gyms is that staff are asked to stay back for cleaning, setup, or client calls without being paid overtime. Any time an employee is required to perform work beyond their ordinary hours must be paid at the overtime rate — or time off in lieu must be formally agreed in accordance with the Award.

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Part-Time Employees

Part-time employees under the Fitness Industry Award must have their hours agreed in writing before they start. The agreement must specify:

• The number of hours of work per week
• The days on which work will be performed
• The starting and finishing times for each day

Part-time employees are entitled to all the same entitlements as full-time employees on a pro-rata basis — annual leave, personal leave, public holiday pay — and must be paid at the same minimum rates (without the casual loading).

Gyms that roster part-time employees on varying hours without a written agreement risk those employees being reclassified as casual (with back-payment of casual loading) or entitled to additional hours pay.

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Annualised Salary Arrangements

For management-level employees (Level 4 and above), the Fitness Industry Award allows for annualised salary arrangements — a single annual salary that is agreed to cover all ordinary time earnings, penalty rates, and overtime. This can simplify payroll administration but comes with strict obligations:

• The arrangement must be agreed in writing
• The salary must be at least equivalent to what the employee would have earned under the Award (including all applicable loadings and penalties)
• You must conduct an annual reconciliation to verify the employee was not underpaid over the previous 12 months
• If a shortfall is identified, you must pay the difference within a specified timeframe

The annualised salary provisions in the Fitness Industry Award were updated in 2020 following changes to Modern Awards generally. If you have employees on annualised salaries, check that your arrangements meet the current requirements.

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Superannuation

Employees under the Fitness Industry Award are entitled to superannuation on all ordinary time earnings at the current Superannuation Guarantee rate — 12% from 1 July 2025. From 1 July 2026, payday super will be introduced, requiring super to be paid on the same day as wages.

This applies to both part-time and full-time employees. Many gym owners are unaware that super is also required on casual loadings — the entire casual hourly rate (including the 25% loading) counts as ordinary time earnings for super purposes.

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Allowances

The Fitness Industry Award provides for certain allowances that must be paid in addition to minimum wages, including:

• First aid allowance — employees required to hold a first aid certificate as a condition of employment are entitled to a weekly first aid allowance
• Uniform allowance — where employees are required to purchase or maintain a uniform, an allowance may apply
• Meal allowance — employees required to work overtime for a certain minimum period without a break may be entitled to a meal allowance

Check the current Award text for the applicable dollar amounts, which are typically adjusted annually.

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Common Compliance Mistakes in Fitness Businesses

1. Misclassifying PTs as Level 1 instead of Level 2 — most PTs holding a Certificate IV should be classified at Level 2 or above
2. Not paying casual loading — paying $25/hr to a casual when the correct rate is $32+ is a recoverable underpayment
3. Ignoring Sunday and public holiday penalty rates — a Class expecting the same rate as a weekday is paying below Award
4. Failing to pay penalty rates to group fitness instructors — GFIs are covered by the Award just like PT employees
5. Using the Award rates from several years ago — rates are updated every 1 July and must be applied from that date

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How Reguladar Helps

Keeping up with Award changes, penalty rate calculations, and classification reviews is time-consuming — especially when you are running a business. Reguladar's compliance dashboard gives gym operators a personalised view of their employment law obligations, including:

• Award update notifications when the Annual Wage Review takes effect
• Obligation tracking for superannuation and payday super deadlines
• Employment law compliance checklists specific to the fitness industry

Run a free compliance check at Reguladar to see which employment law obligations apply to your fitness business and when your next key deadline falls.

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This article is general information only and does not constitute legal or financial advice. Award pay rates change annually — always verify current rates at fairwork.gov.au before setting or reviewing wages.