Australia sets minimum hourly pay of up to $23 for gig delivery workers

Australia has introduced minimum hourly pay rates of up to 32 Australian dollars (22.59 US dollars) for gig economy delivery workers under new standards covering food, beverage and grocery delivery services.

The Fair Work Commission issued the minimum standards order Tuesday, setting an earnings floor of 31.30 AUD ($22.10) per hour for bicycle and e-bike delivery workers, 31.80 AUD ($22.45) for motorbike riders and 32 AUD ($22.59) for drivers using cars, SBS News reported.

The standards, which take effect Monday, Aug. 17, will apply to employee-like workers operating through digital platforms, including Uber Eats and DoorDash.

Workers will be guaranteed the minimum rate for "engaged time," covering the period between accepting an order and completing the delivery.

Platforms can calculate earnings over periods of up to 21 days and must provide a top-up payment if a worker's earnings fall below the prescribed minimum.

The Transport Workers' Union said "hundreds of thousands" of Australian delivery workers could benefit from the changes.

The new rules also require delivery platforms to provide personal accident insurance at their own expense.

Employment and Workplace Relations Minister Amanda Rishworth said the order was a "big step" toward ensuring delivery workers do not have to sacrifice flexibility for stronger workplace protections.

The standards also establish dispute-resolution mechanisms and allow workers to take unpaid time away from delivery work.