The True Cost of Wage Theft in Australia
22 September 2025
7 min read
By Justiico Team
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:
- Complexity of award system
- Employer ignorance or negligence
- Deliberate exploitation
- Poor record keeping
What You Can Do
If you suspect wage theft:
- Keep detailed records
- Request payslips
- Use Justiico to validate your pay
- Contact Fair Work Ombudsman
- Seek legal advice if needed
#wage theft
#underpayment
#fair work
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