Australia Sets Minimum Pay Rates for Food and Grocery Delivery Workers

New minimum pay standards for workers delivering food and groceries in Australia will come into effect from August 17, 2026, following a decision by the Fair Work Commission. Under the new rates, workers using bicycles or e-bikes will receive a minimum of A$31.30 per hour, while those using motorcycles will be entitled to A$31.50 per hour. Workers making deliveries by car will receive a minimum rate of A$32 per hour. Waiting time will also be included in the calculation of payment. The rates will increase by a further 50 cents per hour from January 1, 2027. The decision is being viewed as an important step toward improving conditions and recognising the contribution of workers in the food delivery industry. A significant number of international students from India are also engaged in this sector. Thousands of Workers Covered According to the Australian Bureau of Statistics, 178,590 people worked through digital platforms during the 12 months covered in 2024-25. The information provided says that 50 of them delivered food or other goods, while their number is also stated to be approximately 90,000. The new arrangements follow workplace reforms introduced by the Albanese government in 2023. Workplace Relations Minister Amanda Rishworth described the decision as a “significant milestone”, saying delivery workers should not have to choose between flexible work and better protections. Decision Seen as a Victory for Workers The new minimum rates are being regarded as a significant victory for delivery workers. The Transport Workers’ Union described the arrangements as providing world-class protection for workers. Workers have said the new system could bring greater stability to their incomes. However, some remain concerned that their actual earnings will still depend on the amount of delivery work and the time for which they are engaged in deliveries.