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

What’s the difference between wholemeal and wholegrain bread? Not a whole lot

If you head to the shops to buy bread, you’ll face a variety of different options. But it can be hard to work out the difference between all the types on sale. For instance...

Expert Tips for Planning Home Electrical Upgrades in Australia

Home electrical systems in Australia are quite intricate and require careful handling. Safety and efficiency determine the functionality of these systems, and it's critical to ...

Floor Tiling: Choosing the Right Tiles for Every Room

Choosing floor tiles is more than just grabbing the first design that catches your eye at the showroom. You need to think about how the floor tiling option will fit into your spa...

Exploring Family Caravans: Your Ultimate Guide to Mobile Living and Travel

Australia is the land of vast horizons, spectacular coastlines, and a never-ending adventure. As landscapes and adventures vary across the country, Voyager will route you, carava...

Energy-Efficient Homes in Geelong: How a Local Electrician Can Help You Save Money

Rising energy bills don’t have to be the new normal. With Victoria’s energy prices up 25% last year, Geelong homeowners are fighting back and winning, by partnering with licenced...

Eating disorders don’t just affect teen girls. The risk may go up around pregnancy and menopause too

Eating disorders impact more than 1.1 million people in Australia[1], representing 4.5% of the population. These disorders include binge eating disorder, bulimia nervosa, and...

Times Magazine

Why Cloud Computing Is the Future of IT Infrastructure for Enterprises

Globally, cloud computing is changing the way business organizations manage their IT infrastructure. It offers cheap, flexible and scalable solutions. Cloud technologies are applied in organizations to facilitate procedures and optimize operation...

First Nations Writers Festival

The First Nations Writers Festival (FNWF) is back for its highly anticipated 2025 edition, continuing its mission to celebrate the voices, cultures and traditions of First Nations communities through literature, art and storytelling. Set to take ...

Improving Website Performance with a Cloud VPS

Websites represent the new mantra of success. One slow website may make escape for visitors along with income too. Therefore it's an extra offer to businesses seeking better performance with more scalability and, thus represents an added attracti...

Why You Should Choose Digital Printing for Your Next Project

In the rapidly evolving world of print media, digital printing has emerged as a cornerstone technology that revolutionises how businesses and creative professionals produce printed materials. Offering unparalleled flexibility, speed, and quality, d...

What to Look for When Booking an Event Space in Melbourne

Define your event needs early to streamline venue selection and ensure a good fit. Choose a well-located, accessible venue with good transport links and parking. Check for key amenities such as catering, AV equipment, and flexible seating. Pla...

How BIM Software is Transforming Architecture and Engineering

Building Information Modeling (BIM) software has become a cornerstone of modern architecture and engineering practices, revolutionizing how professionals design, collaborate, and execute projects. By enabling more efficient workflows and fostering ...

LayBy Shopping