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EOR IN Australia
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A guide to employing and growing your team in Australia
Fast and compliant market entry. Hire top local talent without the need for a legal entity
Australia boasts a resilient and open economy, driven by its vast natural resources, high-quality education, and professional services sectors. Employment is governed by the Fair Work Act and the National Employment Standards (NES), which provide a safety net of minimum entitlements. The system is unique for its “Modern Awards,” which set specific pay and conditions for different industries. As of July 1, 2025, the National Minimum Wage in Australia is $24.95 per hour (or $948.00 per week), with the next annual review set to take effect from July 1, 2026
Employer Contributions
Superannuation (retirement fund): 11% (increasing gradually)
Workers’ Compensation Insurance: ~1% to 3% (varies by industry and state)
Total Employer Contribution: ~12% to 14%
Employee Payroll Taxes
No mandatory social security contributions deducted from salary
Employees may voluntarily contribute to superannuation
Total Employee Contribution: 0%
Employee Income Tax Rates
$0 to $18,200: No tax (0%)
$18,201 to $45,000: Taxed at 16%
$45,001 to $135,000: Taxed at 30%
$135,001 to $190,000: Taxed at 37%
$190,001 and above: Taxed at 45%
Statutory Leave
In Australia, full-time employees are entitled to 4 weeks (152 hours) of annual leave per year, with eligible shift workers receiving 5 weeks. Employees also receive 10 days of paid personal/carer’s leave per year for illness, injury, or to care for an immediate family member. There are 10 national or state-observed public holidays annually. Long service leave varies by state and is typically accrued after 7-10 years of continuous service.
Pregnancy and Maternity Leave
In Australia, employees are entitled to up to 12 months of unpaid parental leave, with job protection. They also have the option to request an additional 12 months of unpaid leave. Government-funded paid parental leave is available for up to 18 weeks at minimum wage, subject to eligibility.
Paternity Leave
In Australia, parental leave is covered under the Parental Leave policy. Eligible fathers/partners can access government-funded parental pay through a shared system. This typically includes 2 weeks of partner pay at minimum wage, subject to eligibility.
Work-Related Injury Leave
In Australia, employees are entitled to 10 days of paid sick/carer’s leave per year. Compassionate leave is provided for 2 days per occasion. Work injury leave is covered under workers’ compensation schemes, which can vary by state. Long service leave is available after long-term employment, typically after 7-10 years, though it varies by state.
Termination Process
Employment can be terminated by either party under the Fair Work Act. Employers must ensure the termination is fair and valid, particularly in cases of dismissal, and comply with notice requirements or payment in lieu. Protection against unfair dismissal applies to eligible employees.
Notice Period
Based on length of service:
Less than 1 year: 1 week
1-3 years: 2 weeks
3-5 years: 3 weeks
Over 5 years: 4 weeks
+1 additional week if employee is over 45 years old with at least 2 years of service
Probation Period
Not legally mandated.
Common practice: 3 to 6 months depending on the role and company