Australia Announces Up to $23 Minimum Hourly Pay for Gig Delivery Workers

Australia has introduced new minimum pay protections for gig economy delivery workers, setting hourly earnings of up to 32 Australian dollars (approximately US$22.59) for those delivering food, drinks, and groceries through digital platforms.

The Fair Work Commission issued the new minimum standards order on Tuesday, establishing different pay rates based on the type of vehicle used for deliveries.

Minimum Hourly Rates by Vehicle Type

The updated standards provide the following minimum hourly earnings for engaged time:

• Bicycle and e-bike riders: 31.30 AUD (US$22.10) per hour
• Motorbike riders: 31.80 AUD (US$22.45) per hour
• Car drivers: 32.00 AUD (US$22.59) per hour

These rates will take effect on Monday, August 17, and apply to employee-like workers using digital delivery platforms such as Uber Eats and DoorDash.

Guaranteed Earnings and Top-Up Payments

The minimum pay applies to a worker’s engaged time, which starts when a delivery request is accepted and ends once the order has been completed.

Delivery platforms may calculate earnings over periods of up to 21 days. If a worker’s average pay falls below the required minimum during that period, the platform must provide a top-up payment to meet the earnings floor.

Additional Worker Protections

Along with minimum pay, the new standards introduce several workplace protections, including:

• Employer-funded personal accident insurance
• A formal dispute resolution process
• The ability for workers to take unpaid time away from delivery work

Government and Union Response

The Transport Workers’ Union said the reforms could benefit hundreds of thousands of delivery workers across Australia.

Employment and Workplace Relations Minister Amanda Rishworth described the new order as an important step toward improving workplace protections while allowing gig workers to maintain the flexibility offered by digital delivery platforms.

Australia’s new gig worker standards establish a minimum hourly earnings guarantee alongside stronger workplace protections for delivery drivers and riders.

The reforms are designed to improve income security while preserving the flexibility that many workers value in the gig economy.