One in six new migrant workers getting less than minimum wage

Too many recent migrants are being paid less than minimum wages, a new report warns, with consequences for Australian workers and our international standing.

New migrants are twice as likely as long-term residents to be underpaid, a new report has found. Picture: istock

Up to 16 per cent of new migrants to Australia are being paid less than the national minimum wage, a new report finds, and they are twice as likely as long-term residents to be underpaid.

The new Grattan Institute study also reports that up to 8 per cent of recent migrants are being underpaid by at least three dollars an hour.

The study, Short-changed: How to Stop the Exploitation of Migrant Workers in Australia, says workplace and migrant laws do too little to protect migrants, who often fear their visa might be imperilled or their chance for permanent residency affected if they speak up about mistreatment.

“Recent migrants are at higher risk of exploitation because they tend to be younger, have less experience, and work in industries where exploitation is common,” the report says. “And migrants have additional vulnerabilities because of visa rules, their weaker bargaining power, cultural and social norms, and information barriers.

The report’s lead author and Grattan Institute researcher Brendan Coates.

“Recent migrants are 40 per cent more likely to be underpaid than long-term residents with the same skills and experience and who work in the same job,” the study says.

With a new wave of temporary migrants returning to Australia after the pandemic, the report calls for greater policy action to stop exploitation, for the benefit of both migrants and non-migrants.

“Exploitation hurts migrants, but it also weakens the bargaining power of Australian workers, harms businesses that do the right thing, damages our global reputation, and undermines confidence in the migration program,” said report lead author and Grattan Institute researcher Brendan Coates.

“Exploitation of migrant workers, often young and vulnerable, is a blight on Australia’s claim to be the land of the fair go.”

The report proposes making temporary skills shortages more portable so that migrant workers aren’t tied to an exploitative employer. The compliance and court system also should be beefed up to crack down on bad apple employers and migrants should be supported in any claims for unpaid wages via new migrant worker centres in each state.