Farm work and harvest work are among the most common jobs taken on by working holiday makers in Australia, particularly for those completing their 88 days of regional work to qualify for a second-year visa. One of the most confusing aspects of agricultural employment is the way pay is calculated. Unlike most other jobs in Australia, farm work often uses a system called piece rates rather than an hourly wage.
What is a piece rate?
A piece rate is a payment system where you are paid per unit of work completed rather than per hour worked. In fruit picking, for example, you might be paid per kilogram of strawberries picked, per bin of apples filled, or per tray of blueberries harvested. The faster and more efficiently you work, the more you earn.
Piece rates are legal in Australia and are used across the horticulture industry. They are designed to reflect productivity — experienced pickers can earn significantly more than the hourly minimum because they can move faster through the crop.
Is there a minimum wage guarantee?
Yes, and this is critical to understand. Under Australian law, a piece rate arrangement must still result in the worker earning at least the minimum casual hourly rate for every hour worked. This is known as the piece rate minimum.
The way it works in practice: at the end of each pay period, your employer calculates your total earnings from piece rates and divides by your total hours worked. If the result is below the minimum casual rate — currently $30.12 per hour for adults — the employer is required to top up your pay to reach that minimum.
If your employer is not doing this top-up, they are in breach of the Fair Work Act and underpaying you.
How are piece rates set?
Piece rates must be set at a level that allows a competent worker working at a normal pace to earn at least the minimum wage. This is called the award piece rate. In reality, rates vary significantly between farms and between crops, and not all employers set their rates correctly.
Before starting a piece rate job, ask the employer what the rate per unit is and how many units an average worker picks per hour. This gives you a rough idea of what you will earn and whether the rate is reasonable.
What to watch out for
Several practices in the agricultural sector are problematic and worth knowing about. Some employers undercount the weight or volume of what you pick, reducing your effective pay. Some require you to sort or pack alongside picking without paying for that additional time. Some apply deductions for accommodation or transport that bring your effective hourly rate below the minimum.
Keep your own records. Note the time you start and finish each day, and keep any weight or tally tickets you receive. These records are essential if you later need to dispute your pay.
What if you think you have been underpaid?
If you believe your piece rate earnings divided by your hours worked came out below the minimum wage, you are entitled to make a complaint. You can contact Fair Work Australia directly, and the process is free and confidential. Fair Work investigates underpayment complaints in the agricultural sector regularly and can recover unpaid wages on your behalf.
Underpayment in farm work is unfortunately common. Knowing your rights is the first step to protecting them.
Tax and super on piece rate income
Piece rate income is treated the same as any other employment income for tax and superannuation purposes. Your employer must withhold tax at the correct working holiday maker rate of 15% and pay superannuation on top of your gross earnings. If you are working under a TFN, check your payslips to confirm both are being applied correctly. At the end of the financial year, this income forms part of your tax return.
Need help?
Questions about your pay or tax as a farm worker?
Our team helps working holiday makers in agriculture understand their pay, tax, and super obligations. Talk to us on WhatsApp.
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