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Piece rates are a payment system common in Australian farm work where you are paid per unit harvested (per kilogram, per bin, per tray) rather than per hour.
What is a piece rate?
A piece rate pays you per unit of work, not per hour:
- Per kilogram of strawberries picked
- Per bin of apples filled
- Per tray of blueberries harvested
- Per row of crops weeded
- Per item packed
Piece rates are designed to reward productivity. Experienced pickers can earn significantly more than the hourly minimum. New pickers learning the technique often earn less initially.
Is there a minimum wage guarantee with piece rates?
Yes. This is the most critical rule to understand:
- Piece rate workers must earn at least the casual minimum hourly rate
- For 2025-26, that minimum is $31.19/hour (national minimum + 25% casual loading)
- The minimum is calculated per pay period
- If your effective hourly rate falls below $31.19, the employer must top up
This rule applies to all piece rate work in Australia. It is not optional.
How does the top-up calculation work?
At the end of each pay period:
- Total piece rate earnings calculated
- Total hours worked calculated
- Earnings divided by hours = effective hourly rate
- If below $31.19/hour, employer must top up
Example: $400 in piece rates over 20 hours = $20/hour effective. Below minimum. Employer must top up by $223.80 ($31.19 × 20 = $623.80 - $400) to reach the legal minimum.
If your employer is not applying this top-up, they are in breach of the Fair Work Act.
What practices should you watch out for?
Common problems in farm work:
- Undercounting: weighing or counting your picking lower than actual
- Unpaid sorting time: making you sort or pack alongside picking without pay
- Excessive deductions: charging for accommodation, transport, or meals bringing pay below minimum
- No top-up applied: paying only the piece rate without the hourly minimum check
- Pressure not to claim: discouraging workers from raising concerns
Keep records of:
- Hours worked (start, finish, breaks)
- Pieces picked or tally tickets
- Weights or volumes recorded
- Deductions taken
What should you do if you suspect underpayment?
To recover unpaid wages:
- Calculate your earnings per pay period divided by hours worked
- Compare against $31.19/hour (casual minimum for 2025-26)
- Identify the shortfall
- Raise the issue with your employer with evidence
- If unresolved, get in touch with our team
Our team helps working holiday makers recover unpaid farm wages through the right channels. We have seen many cases where the top-up rule was ignored and significant amounts were recovered.
What about tax and super on piece rate income?
Piece rate income is treated like any other employment income:
- PAYG tax withheld at 15% (with TFN on file)
- Super paid at 12% on top of gross earnings
- Reported in your annual income statement
- Included in your tax return
If you are working as an employee (not under an ABN), all of this should appear on your payslips. If anything is missing or incorrect, send us your payslips and we will check.