Employer of record in Australia: cost and rules (2026)

Employing someone in Australia costs the employer about 12.0% on top of gross salary in statutory contributions, plus an EOR fee of $199 to $699 per month at providers that publish prices ("from" prices). Example: a gross salary of AUD 8,000 per month costs AUD 8,960 per month (about $6,102) before any EOR fee.

Rates checked: 2026-11-14. The employer pays compulsory superannuation on top of salary, up to a yearly earnings ceiling. There is no mandatory 13th salary. State payroll tax and workers' compensation insurance also exist, but a single hire usually does not trigger payroll tax, and insurance varies by state and industry, so neither is added to the total. Estimates only, not advice: see the note at the bottom of the page.

Employer contributions in Australia

Minimum wage: AUD 4,354 per month. The national minimum wage is AUD 26.44 per hour, or AUD 1,004.90 per week for a 38-hour week, from the first full pay period on or after 1 July 2026. The monthly figure is our estimate (1,004.90 x 52 / 12). Many employees are covered by an award or agreement with higher or different rates, and junior and trainee rates differ. Source: Fair Work Ombudsman, Minimum wages

Worked example: AUD 8,000 gross per month

Contractor, EOR or own entity in Australia

Contractor

Whether someone is a contractor or an employee depends on the real nature of the working relationship, not the label in the contract. If a worker is wrongly treated as a contractor, the business may owe superannuation, leave, and back pay with penalties. A genuine contractor with an ABN pays their own tax and arranges their own super. Source: Fair Work Ombudsman, Independent contractors

Own entity

A local company is registered with ASIC and needs at least one director who lives in Australia. Before employing staff you also register for tax with the ATO, set up payroll and super, and take out workers' compensation insurance in the state. Source: ASIC, Registering a company

Leave, notice, probation and termination

Annual leave: 20 days. Full-time employees get 4 weeks of paid annual leave a year (20 days for a five-day week); shift workers in some awards get 5 weeks. Part-time staff get a proportional amount.

Public holidays: 9. 9 weekday public holidays in New South Wales in 2026; other states differ by one to three days. This count includes substitute days for Anzac Day and Boxing Day. Each state and territory sets its own list. Employees get paid time off for public holidays that fall on days they would normally work. Source: Fair Work Ombudsman, Annual leave and 2026 public holidays

Notice

Statutory minimum notice depends on length of service: 1 week for up to 1 year, 2 weeks for 1 to 3 years, 3 weeks for 3 to 5 years and 4 weeks for over 5 years. One extra week is added for employees over 45 with at least 2 years of service. The employer can pay in place of notice. Contracts and awards may set longer periods. Source: Fair Work Ombudsman, Dismissal

Probation

There is no statutory probation length: the employer usually sets it, often 3 to 6 months. A new employee can usually claim unfair dismissal only after 6 months of service, or 12 months with a small business (fewer than 15 employees). Notice rules and leave entitlements still apply during probation. Source: Fair Work Ombudsman, Unfair dismissal

Termination

Redundancy pay starts after 12 months of service: 4 weeks' pay for 1 to 2 years, rising step by step to 16 weeks at 9 to 10 years and 12 weeks at 10 years or more. Employers with fewer than 15 employees are generally exempt from redundancy pay. Unfair dismissal rules apply in addition. Source: Fair Work Ombudsman, Redundancy pay and entitlements

What the calculator simplifies

• Payroll tax is set by each state and territory, with a yearly wage threshold (for example NSW AUD 1.2 million). A single hire normally leaves a company below the threshold, so it is not added. A larger group of employers may owe it.
• Workers' compensation insurance is required in every state, but the premium depends on state and industry. Office work is cheap, other work costs more. It is not added.
• Superannuation is applied to the whole salary up to the ceiling. In practice it applies to ordinary-time earnings, so overtime and some allowances can be excluded.
• The monthly minimum wage and public holiday count are estimates; states differ.
• Parental leave pay and long service leave accruals are not included.

EOR provider prices

Prices are "from" (starting) prices as shown on each provider's own page, usually per employee per month. What you pay can be higher and depends on country, headcount and contract length. Sorted by price, lowest first; providers that publish no price come last.

Affiliate disclosure: we may join providers' affiliate programmes, so links may become affiliate links. Right now the site has no affiliate links. Order is by published price; ties are listed alphabetically. Read the disclosure.

Calculator for Australia

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FAQ

How much does it cost to employ someone in Australia?

On top of gross salary, statutory contributions and mandatory accruals add about 12.0% at a gross salary of AUD 8,000 per month. That is a total of AUD 8,960 per month before any EOR fee.

How much does an employer of record cost in Australia?

Providers that publish a price list charge $199 to $699 per month for EOR plans ("from" prices, checked 2026-11-14). This is on top of salary and the statutory employer costs above. Source

How much paid leave do employees get in Australia?

Annual leave is 20 days, plus 9 public holidays. Full-time employees get 4 weeks of paid annual leave a year (20 days for a five-day week); shift workers in some awards get 5 weeks. Source

What is the notice period in Australia?

Statutory minimum notice depends on length of service: 1 week for up to 1 year, 2 weeks for 1 to 3 years, 3 weeks for 3 to 5 years and 4 weeks for over 5 years. One extra week is added for employees over 45 with at least 2 years of service. The employer can pay in place of notice. Contracts and awards may set longer periods. Source

Is there a probation period in Australia?

There is no statutory probation length: the employer usually sets it, often 3 to 6 months. A new employee can usually claim unfair dismissal only after 6 months of service, or 12 months with a small business (fewer than 15 employees). Notice rules and leave entitlements still apply during probation. Source

What are the rules on ending employment in Australia?

Redundancy pay starts after 12 months of service: 4 weeks' pay for 1 to 2 years, rising step by step to 16 weeks at 9 to 10 years and 12 weeks at 10 years or more. Employers with fewer than 15 employees are generally exempt from redundancy pay. Unfair dismissal rules apply in addition. Source

Sources

Rates checked: 2026-11-14.

• Fair Work Ombudsman, Minimum wages
• Australian Taxation Office, Super guarantee (Tables 21 and 23)
• Fair Work Ombudsman, Annual leave and 2026 public holidays
• Fair Work Ombudsman, Dismissal
• Fair Work Ombudsman, Unfair dismissal
• Fair Work Ombudsman, Redundancy pay and entitlements
• Fair Work Ombudsman, Independent contractors
• ASIC, Registering a company