Australia gives gig workers A$31.30 minimum pay and insurance

Australia’s gig workers are set to receive higher minimum pay and stronger injury protections under new workplace standards approved by the Fair Work Commission (FWC), Reuters reported.

From August 17, food and grocery delivery workers will be entitled to a minimum rate of A$31.30 an hour. That is above Australia’s national minimum wage of A$26.44.

The changes are expected to benefit about 250,000 gig workers across the country.

New minimum pay for delivery workers

The new minimum rate will apply to “engaged” time. This means the period from when a worker accepts a delivery until the order is completed.

The rules cover workers on food and grocery delivery platforms. They are part of wider reforms aimed at improving pay and conditions for people working through digital platforms.

Workers will still need to maintain third-party insurance for vehicles used for deliveries.

Gig platforms must provide injury cover

Under the new rules, delivery platforms must provide a “reasonable minimum level of cover” through personal accident insurance.

The FWC has not set a specific minimum amount for the insurance.

The change gives gig workers greater protection against injuries while working. Previously, many platform workers had limited access to traditional workplace protections because they were classified as independent contractors.

Unions welcome gig worker reforms

The Transport Workers Union (TWU) welcomed the decision, describing it as a major step for Australia's gig economy.

“Gig workers ‌in ⁠Australia were left outside of our workplace systems for far too long. From Monday, they will be entitled to an absolute world-leading set of standards that we will build on over time,” TWU National Secretary Michael Kaine said in a joint statement with Uber Eats and DoorDash.

The TWU jointly applied for the new standards with Uber Eats and DoorDash.

The platforms said stronger worker protections could work alongside the flexibility that attracts people to gig work.

Australia expands gig worker rights

The decision follows laws passed by Australia’s parliament in 2023 and 2024. The reforms gave gig workers greater rights to negotiate minimum pay and working conditions.

They also gave the FWC powers to set minimum standards covering pay and insurance.

The latest changes come as countries around the world reassess employment protections for platform workers.

In June, the International Labour Organization adopted its first binding employment standards for gig workers. The framework covers pay, workplace safety and social protection, although governments still need to ratify the standards.

Gig economy enters a new phase

Australia’s new rules could reshape how delivery platforms manage pay and worker protections.

For workers, the changes provide a higher minimum pay floor and greater protection against workplace injuries. For platforms, they mark a shift towards greater regulation of an industry built around flexible, contractor-based work.