National weather forecast for Thursday July 24

The federal government wants to protect award-wage workers from having their penalty rates bargained away in new legislation introduced to parliament today.

The Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill would ensure 2.6 million workers in industries such as hospitality, retail and care have their weekend and holiday award rate enshrined.

If passed, it means the right to earn higher wages for work outside of what is considered "normal hours" – including weekends, early mornings or late nights – is protected by law.

A new bill aims to enshrine penalty rates for 2.6 million workers in retail, hospitality and care.

Right now, a cafe worker's weekend pay rate under a penalty award is $40.85 per hour on a Saturday and $47.65 on a Sunday.

The bill would prevent the Fair Work Commission (FWC) from varying the award rate to either reduce or substitute overtime and penalty rates if it reduces a person's overall take-home pay.

The federal government introduced the bill in response to a proposal from the Australian Retailers Association (ARA) to allow some workers to opt out of penalty rate entitlements in exchange for a 35 per cent pay rise.

That proposal is still before the FWC.

Minister for Employment and Workplace Relations Amanda Rishworth said today's bill would protect a "safety net" for millions of award workers.

Right now, a cafe worker's weekend pay rate under a penalty award is $40.85 per hour on a Saturday and $47.65 on a Sunday.

"If you rely on the modern award safety net and work weekends, public holidays, early mornings or late nights, you deserve to have your wages protected," Rishworth said.

"Millions of hard-working Australians rely on penalty rates and overtime rates to keep their heads above water, which is why this bill is so critical and should receive the support of both the opposition and the Greens."

The bill was introduced to parliament today and is one of the key pieces of legislation the Labor government vowed to make law this first sitting week.

The government is now negotiating with the Greens and Coalition to push it through the Senate.

Opposition employment spokesman Tim Wilson has said the Coalition supported penalty rates but that small businesses haven't been given a voice on the government's legislation.

Prime Minister Anthony Albanese met with award-wage workers at Parliament House today and spoke of his own experience working in hospitality at Sydney's Pancakes on the Rocks.

"Our number one focus is continuing to deliver cost-of-living relief to Australians," the PM said.

"Protecting penalty rates for millions of workers is an important part of that – making sure Australians can earn more and keep more of what they earn."

A single mum of three kids told the prime minister that penalty rates make up 35 to 40 per cent of her income.

"Without that, I would have to be working 2-3 jobs just to cover expenses," she said.

DOWNLOAD THE 9NEWS APP: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the Apple App Store and Google Play.