Australia Introduces New Minimum Hourly Pay for Delivery Riders

Australia's Fair Work Commission has announced groundbreaking new minimum hourly pay standards for food delivery workers, setting a world-leading example for gig economy protections. The new rules, effective August 17, guarantee a minimum of A$31.30 ($20) per hour for drivers with Uber Eats and DoorDash, ensuring riders are compensated even during periods of inactivity between deliveries.

Previously, gig workers relied solely on per-delivery payments, without guaranteed compensation for waiting periods. Initial rates range from A$31.30 to A$32 per hour, depending on vehicle type, with a further 50 cent increase planned for January 1, 2027. The standards, jointly proposed by the Transport Workers’ Union, Uber Eats, and DoorDash, aim to balance the flexibility of gig work with essential worker protections.

Platforms must also provide personal accident insurance for workers injured on the job, while drivers continue to manage their own vehicle insurance. The new system introduces clearer dispute resolution and allows eligible workers to take unpaid time off.