Australia Sets $31.30 Minimum Hourly Rate for Gig Workers

The Fair Work Commission (FWC) in Australia has approved a new minimum standards order for gig workers, setting a minimum hourly rate of $31.30. This decision is expected to benefit around 250,000 workers, who will also be entitled to personal accident insurance provided by companies.

The new rules, which will take effect on August 17, require companies to provide a 'reasonable minimum level of cover' for personal accident insurance for gig workers. However, gig workers will still be responsible for maintaining third-party insurance for the vehicles used for deliveries.

The Transport Workers Union (TWU) has hailed the new rules as 'world-leading', with national secretary Michael Kaine praising the decision. The new rules were proposed by the TWU, UberEats, and DoorDash, and have been welcomed as a landmark moment for the Australian gig economy.

The minimum hourly rate of $31.30 will apply to 'engaged' time, which is the time between taking on a delivery job and completing the commission. The rate will increase by 50 cents from 1 January 2027.

## What it means The decision is significant because it provides a safety net for hundreds of thousands of gig workers in Australia, who have previously been classified as independent contractors and excluded from many employee protections. The new rules are expected to have a major impact on the gig economy in Australia, and could potentially serve as a precedent for other countries.

The FWC's order comes after years of talks between the TWU, UberEats, and DoorDash, and follows a joint application for new protections in 2024. The decision has been welcomed by unions and workers in Australia, who have long sought reforms benefiting gig workers.

## Why it matters The new rules are important because they address the issue of worker exploitation in the gig economy. Gig workers have often been denied basic rights and protections, including minimum wage and insurance coverage. The FWC's decision recognizes the need for greater protections for these workers and provides a model for other countries to follow.

The decision is also significant in the context of global efforts to protect gig workers. The United Nations' International Labour Organization (ILO) recently adopted a new global treaty for decent working conditions in the gig economy, which still needs ratification by governments. The FWC's order demonstrates Australia's commitment to providing fair working conditions for gig workers and sets a high standard for other countries to follow.