Fair Work Commission Sets Minimum Pay for Australian Gig Workers

The Fair Work Commission approved a landmark minimum standards order for gig workers performing on-demand delivery of food, drinks, or groceries across Australia. Effective August 17, the order mandates a safety net pay rate between $31.30 and $32 per hour for engaged time—the period from accepting a job to completing the delivery. This rate exceeds the national minimum wage of $26.44 and includes a scheduled increase of 50 cents on January 1, 2027.

The ruling, which is expected to benefit approximately 250,000 workers, was jointly applied for by the Transport Workers’ Union, DoorDash, and Uber Eats. Under the new standards, platforms must provide personal accident insurance, although workers remain responsible for third-party vehicle insurance. The order also establishes provisions for dispute resolution and the right to unpaid time off.

This decision follows workplace reforms passed by the Parliament of Australia in 2023 and 2024 that empowered the commission to set minimum standards for the gig economy. Workplace Relations Minister Amanda Rishworth described the order as a big step in delivering protections without sacrificing flexibility. The Transport Workers’ Union characterized the standards as world-leading, while Uber Eats and DoorDash stated the rules demonstrate that worker protections and flexibility can coexist.