Australia offers a skilled, English-speaking workforce under a structured award system and a rising compulsory pension. All-in employer cost runs around 1.18x the gross salary. Here is what to know before your first Australian hire.
Employment sits under the Fair Work Act, the National Employment Standards (NES), and, for many roles, an industry 'modern award' that sets minimum pay and conditions. Written contracts are standard, and superannuation contributions are compulsory.
The national minimum wage is about A$24.10 per hour (A$915.90 a week) from July 2024*, with many roles set higher by an award.
Weekly, fortnightly, or monthly. There is no statutory 13th salary, though some awards add loadings such as annual-leave loading.
Around 7 national plus state-based public holidays, with penalty rates for work on them under many awards.
Written contracts are standard. A minimum employment period (six months, or twelve for small business) governs unfair-dismissal access rather than a formal probation.
Employer costs sit around 18%, driven mainly by compulsory superannuation, plus state payroll tax for larger employers and workers' compensation.
Superannuation is paid on ordinary time earnings. State payroll tax only applies above a wage threshold, so smaller payrolls may not owe it.
Employees pay income tax (PAYG withholding) on a progressive scale plus the Medicare levy. Withholding is the employer's responsibility, which under EOR means ours.
Four weeks of paid annual leave a year under the NES (five for some shift workers), often with leave loading.
Up to 12 months of unpaid parental leave with a right to request another 12. Government-funded Paid Parental Leave is available separately within limits.
Ten days of paid personal (sick and carer's) leave a year under the NES, accruing progressively.
A distinctive Australian entitlement: extra paid leave after long service (commonly around 7 to 10 years), set by each state.
Notice under the NES runs from one to four weeks by tenure, plus an extra week for older long-serving staff. Unfair-dismissal claims are possible after the minimum employment period.
Redundancy pay under the NES scales with service, from 4 up to 16 weeks, with small-business exemptions.
There is no statutory probation, but the six- or twelve-month minimum employment period governs when unfair-dismissal rights begin.
Sham contracting is prohibited; a contractor working like an employee can be reclassified, with back super, leave, and penalties. Recent changes tightened the tests.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Australian employment contract, payroll, superannuation, and benefits, handled. One invoice, flat $499 per month.