The True Cost of Wage Theft in Australia

22 September 2025
7 min read
By Justiico Team
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The True Cost of Wage Theft in Australia

Wage theft is a massive problem in Australia, affecting hundreds of thousands of workers and costing an estimated $1.35 billion annually.

What is Wage Theft?

Wage theft occurs when employers fail to pay workers their full legal entitlements, including:

  • Minimum award rates
  • Penalty rates
  • Overtime
  • Superannuation
  • Leave entitlements

The Numbers

Recent studies show:

  • 1 in 4 workers may be underpaid
  • Average underpayment: $3,800 per worker
  • Most common in retail, hospitality, healthcare

Why It Happens

Wage theft often occurs due to:

  1. Complexity of award system
  2. Employer ignorance or negligence
  3. Deliberate exploitation
  4. Poor record keeping

What You Can Do

If you suspect wage theft:

  1. Keep detailed records
  2. Request payslips
  3. Use Justiico to validate your pay
  4. Contact Fair Work Ombudsman
  5. Seek legal advice if needed
#wage theft #underpayment #fair work

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