How to Handle Being Underpaid at Work in Australia

You've worked the hours, but your payslip shows less than you expected. Being underpaid is stressful, especially when you're managing money far from home on a student budget. The good news is Australia has strong laws protecting your pay rights, and there are clear steps you can take to fix it.

This is general information only, not financial or tax advice. Afrovo is not a licensed financial adviser. For advice on your specific situation, contact the official sources listed below or a qualified professional.

Step 1: Check Your Payslip Carefully

Before you raise the alarm, make sure you understand what you're actually being paid.

Grab your last payslip and look for these details: gross pay (before tax), deductions (tax, superannuation, Medicare levy), and net pay (what hits your account). If your hourly rate times your hours worked doesn't match your gross pay, something is wrong.

Common mistakes include miscounted hours, wrong hourly rate, or tax withheld incorrectly. Sometimes it's an admin error. Check your previous payslips too: is this a one-off or a pattern?

If you're unsure how to read your payslip, our guide to reading Australian payslips walks through each line. You can also ring Fair Work's free helpline (see Step 4).

Step 2: Know Your Legal Pay Rights

Australia has a national minimum wage and strong workplace laws. As of 1 July 2026, the minimum wage is AUD $26.44 per hour, and most junior and casual roles follow modern award rates which are often higher.

Student visa holders can work up to 48 hours per fortnight during study term. Your employer must pay you at least the minimum wage or the award rate for your role, whichever is higher, whether you're full-time, part-time, or casual.

Your employer must also pay superannuation contributions (currently 12%) into a fund for you, and issue a payslip within one week of payday.

Read more about your pay rights as an international student and visit Fair Work for the complete rules.

Step 3: Talk to Your Employer First

In most cases, underpayment is a mistake, not deliberate theft. Start with a calm, written conversation.

Email or message your manager or HR department. Be factual and unemotional: "Hi [name], I've checked my payslip from [date] and notice my pay was AUD [amount], but for [X] hours at AUD [rate], I expected AUD [amount]. Can we discuss this?"

Give them a reasonable timeframe to respond, usually 5-7 working days. Keep a copy of this message and their reply.

Many employers will correct it immediately once they spot the error. If they respond positively and fix it within a week or two, the issue is often closed.

If they ignore you, dismiss your concerns, or refuse to correct an obvious underpayment, move to Step 4.

Step 4: Contact Fair Work for Free Help

Fair Work is the Australian government's independent workplace authority. They are free, confidential, and protect international students.

Ring them on 1300 799 775 (Monday to Friday, 8 am to 5:30 pm) or visit Fair Work to lodge a complaint online. You don't need a lawyer, and there's no cost.

Tell them:

• •Your name, visa type, and employer details
• •The dates and hours you worked
• •Your hourly rate and what you were paid
• •What you've already done to resolve it
• •Any messages or payslips you have

Fair Work will investigate, contact your employer, and push for back pay. They can also issue compliance notices if your employer is breaking the law.

Don't worry about your visa status: reporting underpayment to Fair Work is your legal right and will not affect your visa or trigger any immigration action.

Step 5: Document Everything

Keep a paper trail. Save every payslip, email, text message, and record of hours worked.

Start a simple spreadsheet or notebook:

• •Date and time you worked
• •Hours worked each shift
• •Hourly rate agreed (check your contract or job ad)
• •Gross pay you received
• •Expected pay (hours × rate)
• •The shortfall

If your employer doesn't give you payslips or they're vague, write down what you remember as soon as possible after each shift. This evidence helps Fair Work investigate and strengthens your case for back pay.

Step 6: Know the Scams and Red Flags

Some dodgy employers deliberately underpay international students, hoping they won't complain. Watch out for these warning signs:

• •No written contract or payslips
• •Cash in hand with no record
• •Being told "this is normal for students"
• •Employer telling you not to report them
• •Threats of visa sponsorship being withdrawn if you complain
• •Extreme deductions for "training" or "uniforms"

None of these are legal. If you see them, contact Fair Work immediately. If you believe you're being deliberately exploited, also report to Scamwatch.

Step 7: Recover Back Pay

If Fair Work confirms you've been underpaid, your employer must pay you the shortfall in full, plus superannuation contributions they should have made.

Most employers will settle quickly once Fair Work gets involved. If they refuse, Fair Work can pursue legal action on your behalf or help you take the case to the Small Business Commission or court.

Back pay is not taxable income in the way normal wages are; it's simply the money you were owed. Keep the payment confirmation for your records, and if the amount is very large, ask Fair Work whether you need to report it to the ATO.

What If You're Still Studying?

Being underpaid can blow your student budget. If the shortfall has left you short for rent or essentials, talk to your university's student support or hardship office. Many offer emergency grants or loans for financial hardship.

In the meantime, keep working and documenting the issue. Fair Work moves at a steady pace, but they will recover your money. Stick with it.

FAQ

Q: Can my employer punish me for complaining about underpayment?

A: No. It's illegal for an employer to sack you, cut your hours, or treat you badly because you've complained to Fair Work, your union, or the ATO. If they do, that's unfair dismissal. Contact Fair Work immediately if this happens.

Q: What if I'm working illegally (more hours than my visa allows)?

A: Fair Work will not report you to Immigration. They are separate agencies. You have the right to be paid fairly for work you've done, regardless of visa conditions. That said, if you're working beyond 48 hours per fortnight during study term, you're breaking your visa rules. Stop immediately and talk to the Afrovo team if you need help understanding your limits.

Q: How long does it take Fair Work to fix underpayment?

A: It depends on the case. Simple underpayment errors can be sorted in 2-4 weeks. Disputes with difficult employers might take 2-3 months. Fair Work will keep you updated.

Q: Do I need a lawyer to claim back pay?

A: No. Fair Work is free and designed for workers without lawyers. They'll advocate for you. If the case goes to court, Fair Work or a community legal service can help, often at no cost.

Q: Will claiming back pay affect my tax return?

A: Back pay is income you earned in that tax year, so it should be included when you lodge your tax return. The good news is if your total income is still below the tax-free threshold of AUD $18,200, you won't owe tax. If it pushes you above, you'll owe tax on the amount over the threshold. Chat with the ATO (ato.gov.au) or a registered tax agent if you're unsure.

Final Word

Being underpaid is never your fault, and you're not alone. Australia's wage laws exist to protect you. The steps are simple: check your payslip, talk to your employer, and if needed, call Fair Work. They have your back, and back pay is yours to recover.

For more on managing your money as a student in Australia, visit our student finance hub. And if you have questions about your pay rights, Fair Work's website (fairwork.gov.au) is the go-to official source.