Basic information
Currency：AUD
Capital：Canberra
Official Language：English
Salary Payment：Monthly
Localized benefits for employees
- Superannuation
- WorkerCover
Pay&Tax
- Minimum Wage Requirements
The minimum wage is AUD $3825,46 a month (AUD $882.80 a week). However, the minimum wage may be higher for specific industries. Please see the following link to calculate:
- Individual Income Tax
The individual income tax ranges from 0% to 45%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status, number of children, location, age, and marital status.
| 2023-24 | 2024-25 | ||
| Thresholds | Rates% | Thresholds | Rates% |
| 0-18,200 | Tax free | 0-18,200 | Tax free |
| 18,201-45,000 | 19 | 18,201-45,000 | 16 |
| 45,001-120,000 | 32.5 | 45,001-135,000 | 30 |
| 120,001-180,000 | 37 | 135,001-190,000 | 37 |
| Over 180,000 | 45 | Over 190,000 | 45 |
- Payroll Cost
The employer cost is generally estimated at roughly 16.4-18.5% of the employee’s salary. However, the total charge may vary depending on the state the employee lives in.
- Superannuation guarantee charge – 11.0% (change to 11.5% after 2024/07/01)
- Workers cover – 1-2%
- Payroll tax – 4.95-6.85%
If healthcare benefits are offered to the employee, a mandatory fringe benefit tax will apply. The fringe benefit tax amounts to 47% of the health insurance premium multiplied by a gross-up rate of 1.8868.
- Overtime Pay & Maximum Hours
Standard working hours are 7.6 hours per day, 38 hours per week (1967 hours per year). The standard workweek is from Monday to Friday.
Leave policy
- Annual Leave
Entitled to 4 weeks of paid annual leave for each completed year of service.
- Maternity Leave Maternity leave no longer exists in Australia, it is just paid and unpaid parental leave that covers everything
- Paternity Leave Paternity leave no longer exists in Australia, it is just paid and unpaid parental leave that covers everything
- Parental Leave
Employees who have worked for 12 months are entitled to 20 weeks of paid parental leave and 24 weeks of unpaid parental leave. These leaves may be taken together. For paid parental leave, eligible employees will receive the national minimum wage for this time from the government.
- Sick Leave
Employees are entitled to paid sick leave for up to 10 days. Employees receive their normal wage during this period which will be paid by the employer.
Termination
- Termination RequirementsTerminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in Australia can be complex. There is no at-will termination in Australia for employers outside the probation period and termination must be done for just cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer based on:
- Probation period
- Objective grounds
- Disciplinary dismissal
- Performance due to unsuitability for the job
- By the expiration of the contract
- Notice Period The minimum notice period is 1 week and will be increased according to the length of the employment.
- Less than 1 year of employment – 1 week’s notice
- 1 – 3 years of employment – 2 weeks’ notice
- 3 – 5 years of employment – 3 weeks’ notice
- 5 years of employment – 4 weeks’ notice
In case the employee is older than 45 years old and has worked for the same employer for 2 years, they will be entitled to an additional week of notice.
- Severance for Employees Severance pay will depend on the number of years an employee has worked at the company.
- Less than 1 year at the company receives no severance pay.
- 1-2 years = 4 weeks’ severance pay.
- 2-3 years = 6 weeks’ severance pay.
- 3-4 years = 7 weeks’ severance pay.
- 4-5 years = 8 weeks’ severance pay.
- 5-6 years = 10 weeks’ severance pay.
- 6-7 years = 11 weeks’ severance pay.
- 7-8 years = 13 weeks’ severance pay.
- 8-9 years = 14 weeks’ severance pay.
- More than 10 years = 16 weeks’ severance pay.
Statutory time off
- Paid Time Off
Both full-time and part-time employees are entitled to 20 days of paid time off (PTO) a year. PTO accrues monthly 1.67 days per month. Employees are eligible for annual leave after they have accused enough leave to take.
- Public Holidays
Australia celebrates 7 national and several regional holidays based on the location of the employee. National public holidays include:
- New Year’s Day
- Australia Day
- Good Friday
- Easter Monday
- Anzac Day
- Christmas Day
- Boxing Day
Onboarding
- Onboarding Onboarding takes 2 business days after the client signs the SOW.
Additional info
- Employment Contract Details Contracts must be written in English. They must be in writing and signed by both parties. The contract must include:
- Annual Salary, Position
- Roles & Responsibilities
- Commencement Date
- Pay Frequency, Termination
- Notice period
- Working hours, Bonuses
- Holiday leave
- Sick leave
- Long Service Leave
- Annual Leave
- Superannuation entitlements.
- Probation Period
3-6 months Probation periods help an employer and the employee ensure they’re a hiring match, allowing a company to quickly decide if it’s a fit or the employee to see if the job aligns with their career goals.