How do I know if I'm being underpaid in Australia?

Compare your actual hourly rate against the national minimum wage ($25.50/hr for adults in 2025-26) or your applicable Modern Award rate, which may be higher. If you earn less than the minimum, you are being underpaid. Check your payslip for the hourly rate and hours worked. Casual employees must receive an additional 25% loading on top of the base rate.

What should I do if I'm being underpaid?

First, document everything — keep copies of payslips, rosters, and employment contracts. Raise the issue with your employer in writing. If they don't fix it, you can contact the Fair Work Ombudsman (13 13 94) who can investigate and recover unpaid wages. You can also lodge a claim in the Federal Circuit Court for back pay going back up to 6 years.

How far back can I claim underpayment in Australia?

Under the Fair Work Act, you can claim up to 6 years of back pay for underpayment. This means if you've been underpaid by even $1 per hour for 6 years at 38 hours per week, that's $11,856 in back pay plus interest. The 6-year limitation period starts from when each underpayment occurred.

Is wage theft a crime in Australia?

Yes. Since 1 January 2025, intentional underpayment of employees is a criminal offence under the Fair Work Act. Penalties are up to 10 years imprisonment for individuals and up to $7.825 million for companies. The criminal offence covers intentional underpayment of wages, superannuation, and other entitlements.

Am I Being Underpaid?

Enter your hourly rate to instantly check if you're being paid below the national minimum wage. See your potential back pay exposure for up to 6 years.

Last verified: 1 July 2025

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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.

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