If you have contractors you want to pay in Australia you can also do that via Flexhire. Finally, if you have an open role in Australia, we can help you find the right person to hire smarter and faster.
| Costs | Setup | Monthly | Yearly |
|---|---|---|---|
| Salary | - | $5,512.78 | $66,153.36 |
| Employer Contributions | - | $873.78 | $10,485.31 |
| Refundable Deposit | $1,113.03 | - | - |
| Payroll Fee | $1,113.03 | $1,113.03 | $13,356.36 |
| Misc Expenses | $0 | $53 | $636.02 |
| Insurance | - | - | $0 |
| Total | $2,226.06 | $7,552.59 Monthly cost of employment* | $90,631.04 Annual cost of employment* |
| Employer Payroll Contributions | |
|---|---|
| 15.85% | Total Employment Cost |
| 4.85% | Payroll Tax |
| 1.00% | Medicare |
| 10.00% | Superannuation (capped at 21,002.06 AUD per year) |
The payment schedule is as follows:
- For full-time employees: Payments are distributed every month. 📆
- For those paid on a daily or hourly basis: Payments are usually made either weekly or fortnightly. ⏰
- For employees engaged in project-related work: Payments are typically disbursed on a weekly or fortnightly basis. 📑
The payment cycle is decided upon the agreed employment type and is in accordance with the Labor Standards and Employment Laws of Australia. 🇦🇺
Extra Pay and Bonuses
There are no provisions for an additional 13th salary or bonuses in the law. 💰
Australian Work Schedule
Australia typically observes a workweek from Monday to Friday 📆.
The limitation for working hours is capped at 10 hours daily and 38 hours weekly ⏰.
All additional hours must be agreed upon in advance between employers and employees 📝.
Compensation for Excess Work Hours
- Overtime performed on weekends or holidays, for hours exceeding 38 per week, or for hours exceeding 10 per day is eligible for compensation 💼💰.
- The details of this compensation must be agreed upon by both the employer and employee 📝💰.
In Australia, the allocation of paid vacation is based on the employee's work schedule:
- Regular full-time employees: A leave allowance of 4 weeks per year 📅.
- Shift workers: A leave allowance of 5 weeks per year 📆.
Should an employee leave the company, any unused vacation time will be paid out 🗓️.
The number of public holidays varies according to the state 🇦🇺.
The employer covers the cost of sick leave.
Every employee is entitled to up to 10 days of paid sick leave per year should they fall ill or need to care for a family member 😷. This leave can roll over from year to year, but there is no obligation for it to be paid out upon termination.
Australia's parental leave policy allows employees to take up to two years of unpaid leave, divided into two 12-month periods 🤰. This leave can be used for pregnancy, childbirth, and adoption procedures.
To qualify, an employee must have been with the company for at least 12 months. In addition to this, employees can apply for the government-funded Paid Parental Leave program, which provides 18 weeks of leave at the minimum wage rate.
As for paternity leave, fathers are granted 5 days of unpaid leave upon the birth or adoption of a child, with the option to apply for additional leave under the government scheme 👨👧👦.
| Date | Name |
|---|---|
| 2024-01-01 | New Year's Day |
| 2024-01-26 | Australia Day |
| 2024-03-29 | Good Friday |
| 2024-04-01 | Easter Monday |
| 2024-04-25 | ANZAC Day |
Initial Employment Phase
In the employment landscape, the duration of the initial probationary period is set by the employer and usually extends up to six months.
During this probationary phase, the employer has the opportunity to evaluate the performance of the new employee. If either the employer or the employee wishes to terminate the employment agreement, there are no specific requirements for severance pay. However, the employer should provide ample notice to the employee.
Conclusion of Employment
In Australia, employers are obligated to provide written notice when terminating an employee, barring cases of mutual agreement 📝.
An employee is not eligible for severance pay if their employment is terminated due to valid reasons. These valid reasons could involve employee misconduct, economic factors, or the employee's inability to perform necessary tasks.
Instead of delivering notice, Australian employers have the choice to offer employees payment equivalent to the notice period.
The length of the notice period in Australia is dependent on the length of the employee's service:
- Service of less than 1 year: one week's notice.
- Service between 1 and 3 years: two weeks' notice.
- Service between 3 and 5 years: three weeks' notice.
- Continuous service of over 5 years: four weeks' notice.
- For employees above 45 years of age with at least two years of service, an additional week's notice is mandated.
Employees who are terminated without cause are entitled to various forms of severance pay, which includes:
- A compensation equivalent to 4-16 weeks of pay depending on the length of service, calculated based on the employee's base wage.
- Compensation for any remaining days in the month if the employee is terminated before the month's end.
- Compensation for unused vacation days 🏖️.
- A proportional compensation for the 13th-month salary.
- Special compensation for employees on sick leave 🤒.
- Special compensation for employees on maternity leave 👶.
For employees with a service duration of 10 years or more, severance pay is limited to 12 weeks, in line with a 2004 ruling by the Australian Fair Work Commission regarding redundancy.
If you're an overseas professional or investor seeking to live and work in Australia, getting a work visa is a must. 📝 Trying to work without a valid visa is strictly not allowed.
The company sponsoring your visa should ideally be an Australian-based business, which will take responsibility for your work permits. Moreover, the organization must be authorized to employ international workers and should be registered with the Department of Home Affairs. 🏢
Navigating through the Australian visa procedures can be quite intricate and require a lot of documentation, often characterized by heavy bureaucracy. 📚 The majority of the paperwork is usually handled by your Australian employer, the company's Australian branch, or an Australian immigration lawyer. Different categories of visas are available to cater to various professionals, including investors, experienced business people, skilled professionals, specialized workers, and short-term trainees.
