Fair Work Commission mandates $31.30 minimum wage for gig delivery drivers
The Fair Work Commission has approved a minimum hourly rate of $31.30 for on-demand delivery workers, with personal accident insurance requirements and scheduled rate increases from 2027.
The Fair Work Commission has issued a landmark minimum standards order for gig workers in Australia, mandating a minimum hourly pay rate of $31.30 for on-demand delivery drivers. The order, which applies to workers delivering food, drinks, or groceries, comes into effect on 17 August and was jointly applied for by the Transport Workers’ Union, DoorDash, and UberEats.
The agreement follows workplace reforms introduced by the Albanese government in 2023, which empowered the Commission to set minimum standards for the sector. After reviewing public submissions from gig workers, platforms, and other interested parties including Amazon and Auspost, the Commission greenlit the conditions. Workplace Relations Minister Amanda Rishworth described the order as a “milestone” in delivering gig worker protections.
Under the new standards, platforms are required to provide personal accident insurance for workers, ensuring a reasonable minimum level of cover for injuries. Drivers remain responsible for third-party vehicle insurance, meaning they retain liability for damage to other vehicles in the event of an accident. Experts have noted that the specific level of cover provided by the mandatory personal accident insurance remains open to interpretation.
The minimum rates are designed to ensure workers are paid even when waiting for orders, such as at restaurants. Initial hourly rates range from $31.30 to $32 depending on the class of vehicle used, such as a push bike or car. These rates are scheduled to increase by 50 cents from 1 January 2027.
The deal involved concessions from both sides, including the union agreeing to refer to workers as “employee-like”. The new standards also include clearer dispute resolution processes and the right to unpaid time off. While proposed by the TWU, DoorDash, and UberEats, the conditions are expected to apply to any on-demand platforms selling food, drinks, or groceries, as well as the individuals they hire on an ad hoc basis.
