Australia Raises the Floor for Gig Workers With New Pay and Insurance Rules
Synopsis
Food and grocery delivery workers will be guaranteed at least A$31.30 an hour, above the national minimum wage, and receive personal accident protection under new rules expected to benefit around 250,000 workers from August 17.
Australia gig workers in the food, beverage and grocery delivery sector will benefit from new minimum pay and insurance protections from 17 August, following an order from the Fair Work Commission (FWC) this week.
The new laws will impact around 250,000 workers who provide services on a digital platform.
The new minimum wage rates are set at A$31.30 an hour for those who ride a bicycle, A$31.50 per hour for delivery workers using a motorcycle or a scooter and A$32 per hour for those using a motor vehicle with a carrying capacity of up to one tonne.
They are linked to engaged time, which is defined as the time from when a delivery worker accepts a delivery until it is completed.
New Pay Rules Take Effect
The Australia gig workers will also be entitled to a minimum level of personal accident insurance coverage under the new rules. Additionally, car owners will remain responsible for their third-party cover.
The new delivery rates are above the national minimum wage, which is set to increase to AUD 26.44 per hour from 1 July 2026. The FWC has also approved an increase to A$31.80 for bicycles, A$32 per hour for delivery workers using motorcycles or scooters and A$32.50 per hour for those using motor vehicles from 1 January 2027.
The new order comes after workplace relations reforms passed in both 2023 and 2024 gave the Fair Work Commission the power to set minimum standards for workers in selected industries. The delivery-worker standards were first proposed in 2024 by the Transport Workers’ Union, Uber Eats and DoorDash.
Delivery Work Dominates Platform Jobs
According to the Australian Bureau of Statistics (ABS) Working Arrangements, August 2025 report, there were 178,500 digital platform workers in Australia in 2024-25. Of these, the most common type of work was delivery of food and other goods, which comprised 50 per cent of all platform work, down 11 per cent on the previous year.
The new order creates a separate pay and insurance framework for delivery workers for Australian and US-based organisations providing services through a digital platform.
The Platform Work Directive, on the other hand, does not set a minimum wage in the EU, but requires member states to enact national legislation on the issue by December 2, 2026.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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