Many inner-city Sydney venues were charging customers a surcharge of 10 per cent to 15 per cent on Easter Monday despite a reduction in penalty rates for hospitality staff.

Industry groups said the reduction in penalty rates by up to 50 percentage points for hospitality staff was insufficient to eliminate the need for a public holiday surcharge.

Sydney small businesses imposed a surcharge of up to 15 per cent on Easter Monday.

In 2017 the Fair Work Commission began reducing hospitality penalty rates. So far, they have fallen from double-time and one-half to double-time or double-time and one-quarter.

The Australian Industry Group said "it is not surprising that many businesses still charge public holiday surcharges" because they were still paying penalty rates, albeit a reduced amount.