Australia sets $31.30 minimum wage for delivery drivers in world-first move
The rates will also increase by another 50 cents from January 1, 2027
Published August 11, 2026
Australia has introduced a new minimum pay rate for food delivery workers, guaranteeing gig economy drivers at least A$31.30 ($20) an hour in what has been described as a world-first move to protect workers.
The country's Fair Work Commission approved the new minimum standards for workers delivering food, drinks and groceries through digital platforms such as Uber Eats and DoorDash.
The new rules will come into effect on August 17 and will provide a minimum hourly rate even when delivery workers are waiting for orders, meaning they will no longer be paid only for the time spent actively delivering food.
The initial minimum rates will range from A$31.30 to A$32 an hour depending on the type of vehicle used by the delivery worker. The rates will also increase by another 50 cents from January 1, 2027.
The new standards were jointly proposed by the Transport Workers' Union, Uber Eats and DoorDash following years of negotiations over the working conditions of Australia's gig economy workers.
The agreement is expected to apply across the industry, meaning other platforms involved in on-demand food, drink and grocery deliveries will also be covered by the new standards.
The biggest change is that delivery workers will receive a guaranteed minimum rate instead of relying entirely on individual delivery payments. The system is designed to provide a safety net while allowing workers to retain the flexibility associated with gig work.
The new rules will also require delivery platforms to arrange and pay for personal accident insurance providing a reasonable minimum level of cover for workers who are injured while working.
However, drivers will still be responsible for maintaining third-party vehicle insurance, meaning platforms will not be responsible for damage caused to another vehicle in an accident involving a delivery worker.
The standards will also introduce clearer procedures for resolving disputes and give eligible workers the right to take unpaid time off.
