Full-time and part-time workers in retail and pharmacy will see their standard hourly Sunday penalty drop from 200 per cent to 150 per cent, while casuals will go from 200 per cent to 175 per cent.

Hospitality employees’ Sunday pay will fall from 175 per cent to 150 per cent, while full-time and part-time fast-food staff will only receive 125 per cent and casuals will go from 175 per cent to 150 per cent.

Holiday penalty rates for those in hospitality and retail will also be reduced to 225 per cent.

The Federal government says the changes will allow businesses to open longer on weekends and therefore boost employment.

The Victorian government on Friday commissioned an inquiry into the cuts, from which it will use the findings to lobby Prime Minister Malcolm Turnbull to block the decision.

Tasmanian workers will gather outside United Voice’s office in Davey Street, Hobart, on Monday – Eight Hours Day public holiday – about 12.30pm to show their disapproval. 

“We want to show our support for penalty rates,” Unions Tasmania secretary Jessica Munday said.

“We’ve been contacted by unions and members to express concern and in some cases outrage about these cuts.

“We picked this day in particular because it is a day you are supposed to recognise the value and balance between work, rest and play,

“But for thousands of workers in those industries that are affected they are going to be worrying that this is one of their last public holidays before their pay is cut.”