Australia sets ‘world-leading’ minimum pay rules for gig delivery workers

Australia's industrial authority, the Fair Work Commission (FWC), has mandated new minimum wage and insurance standards for gig delivery workers, setting a global benchmark. The new regulations mandate that delivery personnel be paid a minimum of A$31.30 (RM90.4) per hour, surpassing Australia's standard minimum wage of A$26.44 and providing injury insurance coverage while working. The new rules will benefit approximately 250,000 workers upon implementation on August 17.

The Fair Work Commission's order is a direct response to the International Labour Organization's (ILO) recent decision to establish binding employment standards for gig workers, although these standards must still be ratified by governments. The Transport Workers Union hailed the order as a "landmark moment for the Australian gig economy," promising that the FWC's standards would serve as a foundation for further improvements.

Prior to this order, gig workers in Australia were excluded from standard workplace systems, receiving inadequate protections. Uber Eats and DoorDash, major players in the Australian gig economy, praised the new regulations, emphasizing that enhanced worker safeguards and the flexibility valued by gig workers can coexist. Both companies have been expanding their services beyond restaurant deliveries.

The push for reform in this sector gained momentum following the 2023-24 Australian legislative session, which granted gig workers the right to negotiate minimum wages and conditions.