Australia Introduces Minimum Pay and Insurance Standards for Gig Delivery Workers

Australia's industrial umpire has approved new minimum workplace standards for food and grocery delivery workers, including a minimum hourly payment and personal accident insurance coverage while working.

Under the new rules, gig delivery workers will receive at least A$31.30 ($22.11) per hour, compared with Australia's national minimum wage of A$26.44. The Fair Work Commission said companies must also provide a reasonable minimum level of personal accident insurance for workers.

The rules will take effect on August 17 and are expected to benefit around 250,000 workers. Delivery workers will be paid the minimum hourly rate for their "engaged" time, meaning the period from accepting a delivery job until the order is completed.

Workers will continue to be responsible for maintaining third-party insurance for vehicles used for deliveries.

The decision follows years of pressure from unions and gig workers for stronger workplace protections. Gig workers are generally classified as independent contractors, which has historically kept them outside many employment protections available to employees.

Australia introduced legislation in 2023 and 2024 giving gig workers greater rights to negotiate minimum pay and working conditions. The legislation also gave the Fair Work Commission authority to establish standards covering pay and insurance.

The Transport Workers Union described the decision as a major development for Australia's gig economy. Uber Eats and DoorDash also said the rules demonstrate that stronger protections can coexist with the flexibility valued by gig workers.