The Times Australia
The Times World News

.
The Times Real Estate

.

Up to one in six recent migrants are paid less than the minimum wage. Here’s why

  • Written by Brendan Coates, Program Director, Economic Policy, Grattan Institute
Up to one in six recent migrants are paid less than the minimum wage. Here’s why

From working 20 to 30 hours[1] of unpaid overtime each week in one of Australia’s fanciest restaurants to picking fruit while being exposed to dangerous chemicals for less than $10 an hour[2], the underpayment of migrant workers is rife.

The Grattan Institute’s new report, Short-changed: How to stop the exploitation of migrant workers in Australia[3], show a broad pattern.

We’ve used two nationally representative Australian Bureau of Statistics surveys of employees and employers – Characteristics of Employment[4] and Employee Earnings and Hours[5] – to find out whether employees are paid below the national minimum hourly wage in Australia, currently $21.38 an hour or $26.73 an hour for casuals[6].

We estimate that recent migrants – those who arrived in Australia within the past five years – are twice as likely to be underpaid as migrants who have been in Australia for at least 10 years, and those born here.

Underpayment is widespread

In 2022, 5% to 16% of employed recent migrants were paid less than the national minimum wage. Between 1% and 8.5% of recent migrants were paid at least $3 less than the hourly minimum.

This compares with 3% to 9% of all employees in Australia being paid below the national minimum wage; with 0.5% to 4.5% paid at least $3 an hour less. These numbers are likely to under-represent the extent of underpayment because our analysis only counts those being paid less than the national minimum wage. It does not count cases where workers are underpaid against appropriate award rates, which typically pay more than the national minimum wage, penalty rates, or are not paid their superannuation. Factors contributing to exploitation Part of reason recent migrants are more likely to be underpaid is because they tend to work in industries where underpayment is more prevalent, such as hospitality and agriculture. For example, temporary visa holders account for nearly 20% of workers in hospitality, the industry with the highest reported rate of underpayment.
Migrants also tend to be younger workers. Employees aged 20 to 29 are nearly six times more likely to be paid less than the national minimum wage than workers aged 30 to 39. But even after accounting for age, industry and other demographic characteristics, migrants are still more likely to be underpaid. Migrants who arrived in the past five years are 40% more likely to be underpaid than long-term residents with similar skills working in the same job with the same characteristics. Migrants who arrived five to nine years ago are 20% more likely to be underpaid. Several things explain this. First are visa rules, which make temporary visa holders more vulnerable to exploitation. For example, many international students put up with mistreatment for fear their visa may be cancelled for working more hours than permitted by their visa rules. Two-thirds of recent migrants are on a temporary visa[7]. Migrants have less bargaining power than local workers, partly because they have small social networks to help them find a job. They may not know what workplace rights they are entitled to and face discrimination in the labour market. Read more: What's in a name? How recruitment discriminates against 'foreign' applicants[8] Our analysis shows the likelihood of underpayment is also higher among those working less-skilled jobs with fewer qualifications. Without change, underpayment will rise again Rates of underpayment for migrant workers and locals alike have fallen since the pandemic began In 2018, 8% to 22% of recent migrants were paid less than the minimum hourly wage (compared with 5% to 16% in 2022). This probably reflects the decline in the number of temporary visa holders living in Australia, especially students and working holiday makers, and labour shortages boosting worker’s bargaining power. But with borders open again and temporary visa holders coming back in big numbers[9], the rate of underpayment seems sure to rise again without action from government to stamp out exploitation. The federal government needs to reform the visa rules that make migrants vulnerable, boost resources to enforce workplace and migration laws and make it easier for migrants to claim money owed. Underpayment has been widespread for too long. Now is the time to put a stop to it. Read more: How to improve the migration system for the good of temporary migrants – and Australia[10] References^ 20 to 30 hours (www.smh.com.au)^ less than $10 an hour (www.smh.com.au)^ Short-changed: How to stop the exploitation of migrant workers in Australia (grattan.edu.au)^ Characteristics of Employment (www.abs.gov.au)^ Employee Earnings and Hours (www.abs.gov.au)^ $21.38 an hour or $26.73 an hour for casuals (www.fairwork.gov.au)^ Two-thirds of recent migrants are on a temporary visa (grattan.edu.au)^ What's in a name? How recruitment discriminates against 'foreign' applicants (theconversation.com)^ temporary visa holders coming back in big numbers (www.theaustralian.com.au)^ How to improve the migration system for the good of temporary migrants – and Australia (theconversation.com)

Read more https://theconversation.com/up-to-one-in-six-recent-migrants-are-paid-less-than-the-minimum-wage-heres-why-206067

The Times Features

10 Smart Ways Australians Can Slash Their Electricity Bills in 2025

Electricity prices in Australia continue to rise, but that does not mean you have to sacrifice your lifestyle to save money. By making a few smart changes, you can lower your pow...

Trusted Healthcare Construction Company for Modern Facilities

Achieving quality, safety, and innovative medical facilities is challenging in an ever-changing healthcare world without collaboration with a trusted healthcare construction comp...

How to Treat Hair Loss Without a Hair Transplant

Understanding Hair Loss Hair loss can significantly affect individuals, both physically and emotionally. Identifying the causes and types can help address the issue more effecti...

How to Find a Trustworthy Professional for Your Plumbing Needs

Nowra is an idyllic locality often referred to as the city of the Shoalhaven City Council in the South Coast region of New South Wales, Australia. This picturesque suburb feature...

How to Choose a Mattress for Back/Neck Pain and All Sleepers?

Waking up with a stiff neck or aching back can derail your entire day. If you're one of the millions struggling with chronic pain, a supportive mattress is more than a luxury – i...

What to Look for in a Professional Debt Collection Service

Often in life, overdue payments are accidental or caused by unusual circumstances. This can cause some temporary convenience, but everything carries on as usual. However, when th...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping