Noticing your paycheck feels… off?
If you’re feeling underpaid at work in Australia, you’re not alone. Underpayment is one of the most common issues faced by Australian workers, and many don’t even realise it’s happening. In 2023-24 alone, Fair Work Ombudsman recovered $473 million for nearly 160,000 underpaid workers. Over the past three years, that’s $1.5 billion in stolen wages returned to workers.
Whether you’re casual, permanent, or a fixed term, this guide will help you spot underpayment, understand your rights, and take action.
What Counts as Underpayment?
Underpayment happens when your employer pays you less than the legal minimum, including:
- Your base hourly or weekly rate
- Penalty rates for weekends, public holidays or overtime
- Superannuation contributions
- Allowances (e.g. meal, travel, uniform)
- Leave entitlements (paid sick/annual leave if you’re entitled)
This can apply to casuals, full-time staff, part-timers, or workers misclassified as independent contractors.
Tip: If your role is covered by a modern award or enterprise agreement, you’re entitled to the minimums it outlines, even if you “agreed” to less.
Flat Day Rates — Are You Missing Out?
If you’re paid a flat daily rate, you may still be entitled to:
- Casual loading (usually 25%)
- Overtime or penalty rates for weekends, public holidays, and late shifts
- Superannuation contributions (currently 12% as of 1 July 2025)
- Award minimum wage rates
For Employees (Casual or Part‑Time)
- Flat rates don’t override your award entitlements. You’re still entitled to minimum wages, penalties, and casual loading.
- Your employer must ensure the flat rate covers all the entitlements earned for that shift.
For Contractors
- True independent contractors can negotiate flat rates (you issue invoices, set your hours, and aren’t managed like an employee).
- But if you’re treated like an employee (set hours, using company tools, supervised like staff), you may actually be an employee under Fair Work rules, regardless of your contract title.
When to Get Help
If you’re on a flat rate and unsure whether it covers all your entitlements, especially for weekend or public holiday work:
- Use the Fair Work Pay and Conditions Tool (PACT) to get an initial comparison.
- Contact the Fair Work Ombudsman for a free pay assessment if you’re still unsure.
They can help determine if you’re being underpaid and what to do next.
Common Signs You’re Being Underpaid
Not sure if you’re being short-changed? Here are some red flags:
- Your hourly rate is below the award minimum
- You’re not receiving penalty rates for night/weekend shifts
- You haven’t been paid super, or it’s paid irregularly
- You’re not given payslips or your payslip lacks detail
- You’re not being paid for mandatory training, work-related travel time, or required team meetings
- You’re told “this is just how we do things here”
Being Given Time in Lieu Instead of Overtime Pay
Some employers offer “time off later” instead of paying overtime. While this can be legal, it must follow strict rules:
- You must agree voluntarily. It can’t be forced.
- It must be allowed under your award or enterprise agreement.
- The time off must be equivalent to the overtime you earned, based on your award or agreement.
- It often must be used within 6 months, or it must be paid out.
Red flag: If your employer automatically gives TOIL instead of overtime pay without your agreement or award provision, it may be a breach of workplace laws.
Check your award to see if TOIL is permitted. Find you award here.
How to Check Your Pay
Find your award
Use the Fair Work Pay and Conditions Tool (PACT) to identify your award, classification, and correct rates.
Compare your pay
Review your payslip and compare it to the expected base rate, penalty rates, and entitlements under your award.
Look for missing super
Log into myGov > ATO > Superannuation to see if your employer is contributing the correct amount (currently 12% as of July 2025).
What You Can Do if You’re Being Underpaid
Step 1: Speak to Your Employer
Sometimes underpayment is due to an honest mistake. Raise the issue politely and request a payslip review.
Step 2: Contact Fair Work Ombudsman
If things don’t improve, you can:
- Call Fair Work Ombudsman
- Lodge a request for assistance (you may be eligible for backpay)
Step 3: Consider Legal Help
If large sums are involved, or if you’re facing retaliation or dismissal, a workplace lawyer can:
- Send demand letters
- Represent you in court
- Negotiate a higher payout or settlement
Who Can Help? FWO, FWC, Legal Aid, or a Workplace Lawyer
Understanding who to turn to is just as important as knowing your rights. Here’s a simple guide to where you can get help:
Fair Work Ombudsman (FWO)
Website: fairwork.gov.au
What they do:
- Investigate underpayment and wage theft
- Help recover unpaid wages or entitlements
- Provide pay calculators, templates, and advice
- Issue penalties to employers who break workplace laws
Best for:
- “I think I’m being underpaid.”
- “I never received my final pay.”
- “I want to check what I’m entitled to under the law.”
Fair Work Commission (FWC)
Website: fwc.gov.au
What they do:
- Handle unfair dismissal and general protections claims
- Approve enterprise agreements and resolve disputes
- Make rulings on award conditions and industrial actions
Best for:
- “I was unfairly fired.”
- “I want to dispute my enterprise agreement.”
- “I need a formal ruling or order.”
Legal Aid (NSW, VIC, QLD, etc.)
What they do:
- Offer free or low-cost legal advice (for eligible workers)
- May help with discrimination, unfair dismissal, or wage theft claims
- Provide guidance on navigating Fair Work complaints
Best for:
- “I need legal help but can’t afford a lawyer.”
- “I’m experiencing workplace discrimination or abuse.”
Search “Legal Aid [Your State]” (e.g., Legal Aid NSW)
Workplace Lawyer (Private)
What they do:
- Provide personalised legal advice
- Represent you in court or mediation
- Send legal letters or negotiate payouts
- Help with contract disputes, pay secrecy clauses, or retaliation
Best for:
- “I want to sue or negotiate a settlement.”
- “My employer is retaliating after I spoke up.”
- “My case is too complex for Fair Work or Legal Aid.”
Quick Comparison
| Issue | Go to… |
| Underpaid or unpaid | FWO first, then lawyer if unresolved |
| Unfair dismissal | FWC, or lawyer if complex |
| Low-income legal help needed | Legal Aid |
| Fast, private legal action | Workplace lawyer |
Know Your Rights, Protect Your Pay
Many workers in Australia never realise they’ve been underpaid, or feel too intimidated to speak up.
At Echochime, we believe pay transparency is power. The more workers understand their rights, what they should earn and what they are entitled to, the less power bad employers have to get away with unfair practices and the harder it becomes for them to take advantage of you. See more on our Home and About Us pages.
If your underpayment looks deliberate, it could be wage theft. Learn the signs and what to do in our guide: Wage Theft in Australia: How to Tell if Underpayment is Criminal
Not sure what others in your role earn? Check out our article: What’s Your Time Worth? Find Your Market Value in Australia
Disclaimer:
This blog is for informational purposes only and does not constitute legal, financial, or workplace advice. While we aim to provide accurate and up‑to‑date information, we cannot guarantee it is complete or applicable to your specific circumstances. For advice specific to your situation, please contact Fair Work, Legal Aid, or a qualified workplace lawyer.