The Fair Work Commission on Thursday announced Sunday penalty rates paid in retail, fast food, hospitality and pharmacy industries will be reduced from the existing levels, which, in some cases, are as much as "double time".

While it could mean a pay cut of about $5 an hour – or up to $2000 – for some workers, for businesses it could mean opening extra hours.

Rough Diamond owner Henry Bird said the changes would mean he could consider opening his business on a Sunday.

“It definitely opens up the possibility of opening more hours,” Mr Bird said.

He said it would make it easier to give people more work, especially weekend work for students.

Mid City Motel manager Amanda Plesa said the changes could affect about 20 of their employees and could have a big impact on their take-home pay.

“It will definitely discourage the young ones from coming to work because they’re so used to thinking, ‘if I work the Sunday I’m going to be rewarded for it’,” Miss Plesa said.

She said the changes would mean workers could lose about $5 an hour. 

“It’s a big chunk, especially for casual workers who rely on minimal work to get them through, and can only get minimal work, and rely on the Sunday to top up their weekly wage,” she said. 

Miss Plesa said there was two sides to every story. 

“I’ve seen seen from the small business point of view where it is hard for them to have that hourly rate,” she said. “For a small business, they need to be very mindful of their wages but for the large businesses and people who work Monday to Friday, they’re not interested in doing a Sunday unless there is a benefit to it.”

She said if a business owner could save on wages, they would adopt the new rates.

Workers contacted by The Standard said cutting penalty rates would remove incentives to work on Sundays.

Full-time and part-time workers in retail will have their Sunday penalty rates dropped from 200 per cent to 150 per cent of their standard hourly rate, while casuals will go from 200 per cent to 175 per cent. Hospitality employees will face a reduction in Sunday pay from 175 per cent to 150 per cent, while casual hospitality workers' pay will remain unchanged.

Fast-food employees' Sunday rates will go from 150 per cent to 125 per cent for full-time and part-time staff, and casuals will go from 200 per cent to 175 per cent.

The changes take effect from July.