Historic Pay Deal for Australian Gig Workers: Uber Eats and DoorDash to Boost Minimum Wage

Food delivery drivers for Uber Eats and DoorDash in Australia have secured a landmark pay rise. A new agreement will set a minimum hourly wage for the first time. The deal was finalized after extensive negotiations with the Transport Workers Union.This represents a major shift for the gig economy. Workers will see their pay increase to nearly $32 per hour. The Fair Work Commission is now reviewing the draft standards for final approval.

Details of the New Pay Standard

The new minimum rate is approximately $32 per hour. This marks a significant 25% pay boost for many workers. The changes are scheduled to take effect in July 2026.According to Reuters, this is the first nationwide minimum pay standard for the food delivery sector. It establishes a crucial earnings floor for a historically volatile industry. The deal aims to provide greater financial security for thousands of couriers.

Broader Protections and Industry Impact

The agreement extends beyond just hourly pay. It also introduces mandatory accident insurance for all delivery workers. Improved dispute resolution processes and access to training are also included.This settlement follows the recent exit of competitor Menulog from the Australian market. The union leveraged this market consolidation to argue for better conditions. The new standards could set a global precedent for gig worker rights.

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This new pay deal for Uber Eats and DoorDash workers establishes a critical benchmark for the gig economy, promising greater stability for a vital workforce.

Thought you’d like to know

When does the new pay rate start?

The new minimum pay standard is scheduled to begin in July 2026. The Fair Work Commission must give final approval first. This timeline allows the platforms to adjust their systems.

What is the new minimum hourly pay?

The new minimum rate will be approximately $32 per hour. This represents a pay increase of about 25% for many workers. The rate is indexed and will increase over time.

Does this agreement include other benefits?

Yes, it includes accident insurance and improved dispute resolution. Workers will also get more transparency about job details and pay. These are first-time protections for the industry.

Will this affect delivery prices for customers?

Platforms have not confirmed if prices will rise. Increased labor costs often lead to higher service fees. The companies are assessing the full financial impact.

Why is this deal considered historic?

It is the first nationwide minimum pay standard for food delivery. It sets a precedent for regulating gig economy wages. Other countries may now consider similar reforms.