EORHire with Columbus
From$179 / mo
🇦🇺
Hiring in Australia through an EOR (2026)
Here's what you need to know before you hire in Australia: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.
12%Employer cost on top
A$4,023Minimum wage / mo
20 daysPaid annual leave
Days, not monthsTime to hire via EOR
Last updated: July 12, 2026
Referral-funded: we may earn a fee if you sign up with a provider through our links, at no cost to you. It never affects our recommendations. How we’re funded
Australia at a glance
The statutory facts that drive a hire in Australia. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.
Pay & working time
| Minimum wageper month | A$4,023Dated | ILOSTAT · 2024 |
| Average wageper year | 72,018Aging | OECD · 2025 |
| Statutory work week | 38 hours/weekCurrent | Statutory working time (national labour law) · 2024 |
| Payroll cycle | biweeklyCurrent | Research desk · 2026 |
| 13th-month salary | noneCurrent | Research desk · 2026 |
Employer cost & tax
| Employer social securityof gross salary | 12%Current | PwC Worldwide Tax Summaries · 2025 |
| Employee social securitywithheld from pay | 0%Aging | OECD · 2025 |
| Total tax wedge | 27.9%Aging | OECD · 2025 |
| Corporate tax rate | 30%Current | OECD · 2026 |
Termination
| Notice period | 3 weeksCurrent | ILO EPLex · 2026 |
| Severance pay | 8.7 weeksCurrent | ILO EPLex · 2026 |
| Employment protectionOECD EPL, scale 0–6 | 1.7Aging | OECD · 2025 |
Leave & time off
| Paid annual leave | 20 daysCurrent | Research desk · 2026 |
| Public holidays | 11 daysCurrent | Research desk · 2026 |
| Maternity leave | 2 weeksDated | OECD Family Database · 2024 |
| Paternity leave | 0 weeksCurrent | Research desk · 2026 |
| Parental leave | 26 weeksCurrent | OECD Family Database · 2026 |
Labour market
| Retirement age | 67Dated | OECD Pensions at a Glance · 2024 |
| Unemployment rate | 4.1%Current | OECD · 2026 |
| GDP per capita | $65,130Aging | World Bank Open Data · 2025 |
| Union density | 12.2%Dated | OECD/AIAS ICTWSS · 2024 |
| Collective bargaining coverage | 59.7%Dated | OECD/AIAS ICTWSS · 2023 |
Each row shows the year of the most recent citable source for that figure. Where a year looks old, that is the newest comprehensive source available, and we keep the sourced figure rather than substitute an unsourced newer one. Statutes may have changed since. Rows marked Research desk were filled by our research desk from primary sources where no institutional dataset publishes the figure; each carries the date it was checked and is re-verified on its refresh cycle.
What it costs to hire in Australia
Salary is only part of the bill. On top of gross pay you owe employer social security and statutory contributions. Here's what an example salary of $72,000 a year actually costs you as the employer.
| Gross annual salary | $72,000 |
| Employer contributions≈ 12% of gross | + $8,640 |
| Total employment cost | $80,640 |
Your EOR handles the filings
Illustrative, based on the employer social-security rate above. An EOR adds its own service fee on top of this total and runs the income-tax withholding and statutory filings, which are withheld from the employee's pay, not paid by you.
Income tax in Australia
The average effective income-tax rate is about . This is withheld from the employee's salary; an EOR runs the withholding and filing.
Employment-law essentials
The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in Australia on your own.
Working time
Statutory work week38 hours/week
Pay & 13th salary
Minimum wageA$4,023
Payroll cyclebiweekly
13th-month salarynone
Leave
Paid annual leave20 days
Public holidays11 days
Maternity leave2 weeks
Paternity leave0 weeks
Termination
Notice period3 weeks
Severance pay8.7 weeks
Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.
EOR vs. opening your own entity in Australia
Use an EOR when…
You're hiring one to a handful of people in Australia.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.
Choosing an EOR for Australia
Providers with strong Australia coverage onboard faster and carry less risk. A shortlist to start from:
EORRead Hire with Columbus review Visit website
EORMultiplier
From$459 / mo
EORPayoneer Workforce Management
From$199 / mo
EORRemoFirst
From$199 / mo
EORRemote
From$699 / mo
EORSignature Back Office Solutions
FromContact for pricing
Local players in Australia
EOR and global-employment providers headquartered in Australia:
AustraliaAquent Australia
Sydney
FromContact for pricing
AustraliaCXC Global
North Sydney
FromContact for pricing
AustraliaEmployment Hero
Sydney
FromContact for pricing
Common questions about hiring in Australia
Common questions about hiring in Australia through an EOR.
Do I need a legal entity to hire someone in Australia? +
No. An Employer of Record (EOR) already has a legal entity in Australia and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
How much does it cost to employ someone in Australia? +
On top of gross salary, employers in Australia contribute roughly 12% in social security and statutory costs. An EOR adds its own service fee on top of that total employment cost.
What is the minimum wage in Australia? +
The statutory minimum wage in Australia is A$4,023. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in Australia? +
Ending employment in Australia generally requires a notice period of around 3 weeks and severance of about 8.7 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
How much paid leave do employees get in Australia? +
Employees in Australia are entitled to 20 days of paid annual leave, in addition to public holidays. Statutory leave is one of the entitlements your EOR administers automatically.
About the author
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
View profile