Partner with Lerio to keep employment in Australia legally sound — contracts, payroll and statutory benefits handled against the live rule set.
Every figure below is modelled, not memorised — and traceable to its source via the calculator on the right.
Employee taxes
withheld from grossIncome Tax Rates
withheld from grossEmployer taxes
on top of grossEmployer Tax
on top of grossHiring in Australia is modelled by Lerio; reach out to compliance for the current Employer-of-Record path.
Australia is a highly attractive destination for global companies due to its strong economy, advanced infrastructure, and skilled workforce. However, expanding into Australia requires compliance with complex employment laws, tax obligations, and strict workplace regulations under the Fair Work Act 2009. Setting up a local entity can be time-consuming and costly.
An Employer of Record (EOR) in Australia provides a fast and compliant solution for hiring employees without needing to establish a legal entity. The EOR becomes the legal employer, managing all employment administration, while the client company controls the employee’s day-to-day responsibilities.
Key Benefits of Using an EOR in Australia
Faster Market Entry – Hire local talent within weeks instead of months.
Compliance Assurance – Adherence to Australian employment law, workplace health and safety standards, and Fair Work Commission regulations.
Reduced Costs – Avoid the overhead of creating and maintaining a subsidiary.
Talent Access – Gain access to Australia’s highly skilled workforce in tech, finance, healthcare, mining, and professional services.
Flexibility – Ideal for testing new markets or hiring remote employees without long-term infrastructure commitments.
How EOR Works in Australia
The Employer of Record takes on the role of the legal employer and manages:
Employment contracts that comply with the Fair Work Act and Modern Awards.
Payroll processing, tax withholding, and superannuation contributions.
Statutory benefits, including paid leave entitlements, public holidays, and workers’ compensation.
Compliance with minimum wage laws, anti-discrimination legislation, and workplace safety standards.
Onboarding and termination support, ensuring fair and lawful processes.
The client company directs the employee’s work while the EOR handles all legal, payroll, and HR administration.
Compliance and Employment Regulations in Australia
Working Hours: Standard full-time work is 38 hours per week; overtime rules vary by industry.
Minimum Wage: As of July 2025, the national minimum wage is AUD $24.95/hour (~€14/hour). Some Modern Awards stipulate higher rates.
Leave Entitlements: Employees are entitled to 4 weeks of paid annual leave, 10 days of paid personal/carer’s leave, and public holidays.
Superannuation: Employers must contribute 11.5% of an employee’s ordinary time earnings into a superannuation (retirement savings) fund.
Termination Rules: Notice periods vary depending on tenure; severance pay applies in cases of redundancy.
Probation Period: Commonly 6 months, depending on the employment contract.
Why Choose an EOR in Australia?
Ensure Compliance – Stay aligned with strict Fair Work Commission and workplace health & safety laws.
Save Time & Money – No need to set up an Australian subsidiary.
Risk Reduction – Mitigate risks related to misclassification, payroll errors, or non-compliance penalties.
Scalable Growth – Perfect for project-based hiring, pilot expansions, or distributed teams.
Expert Local Support – HR, payroll, and compliance experts with knowledge of Australian law.
An Employer of Record in Australia is the fastest, safest, and most cost-effective way to expand into the Australian market, hire local talent, and remain fully compliant with employment law.
What Lerio handles
Typical timeline
via EORStatutory benefits in Australia, plus the supplemental coverage teams usually add.
Mandatory
Commonly added
optionalStatutory / Mandatory Benefits
These are guaranteed by law under the National Employment Standards (NES):
Paid Annual Leave – Minimum 4 weeks per year (5 weeks for certain shift workers).
Public Holidays – 11 public holidays (varies by state/territory).
Paid Sick & Carer’s Leave – 10 days per year of paid personal/carer’s leave (accrued).
Compassionate Leave – 2 days per occasion (paid).
Parental Leave – Up to 12 months unpaid leave (with option to request an extra 12 months). Employees may also access government-funded Paid Parental Leave (up to 20 weeks at minimum wage, increasing to 26 weeks by 2026).
Long Service Leave – After a set period of continuous employment (varies by state, typically after 7–10 years).
Superannuation (Pension) – Employers must contribute a minimum of 11% of an employee’s ordinary earnings to a super fund (gradually rising to 12% by 2026).
Redundancy Pay – Required if an employee is terminated due to genuine redundancy (amount depends on length of service).
Notice of Termination – Minimum notice period required based on years of service.
Safe Work Environment – Employers are legally obligated to provide a safe and healthy workplace under WHS laws.
Common Employer-Provided Benefits
Many Australian employers provide additional perks to attract and retain staff:
Private Health Insurance – Subsidies or full coverage.
Salary Packaging / Novated Leasing – Tax-effective benefits such as cars, laptops, or additional super contributions.
Additional Super Contributions – Employer contributions above the mandatory 11%.
Bonuses & Incentive Schemes – Performance or company profit-based.
Flexible / Hybrid Work Arrangements – Remote work, compressed weeks, flexible hours.
Wellness & Lifestyle Programs – Gym memberships, fitness allowances, mental health support.
Extra Paid Leave – Additional sick leave, wellness days, birthday leave, or volunteer leave.
Professional Development – Training, education reimbursement, courses.
Equity / Stock Options – Especially in startups and tech companies.
Travel & Commuter Benefits – Public transport allowances, fuel cards, company cars.
Meal Subsidies / Perks – Canteen discounts, free lunches, or meal allowances.
Employee Assistance Programs (EAPs) – Confidential counseling and wellbeing services.