Hiring Employees in Australia
Payroll Services Australia
Streamline your business operations with Payroll Outsourcing in Australia through PeoplePay Global. Our efficient organisation allows you and your company to access accurate, on-time payments, with full compliance to Australian Tax Laws and Fair Work Regulations.
By outsourcing your payroll services, you can reduce administrative costs, freeing up valuable time to focus on the growth and development of your business. Choose PeoplePay Global today to start your journey to simple payroll management you can trust.
Australian Payroll Services
Enhance your organisation with professional Payroll Outsourcing in Australia through PeoplePay Global, designed specifically to support businesses of all sizes. Each of our experts will manage every aspect of your payroll services, from payslip production to PAYG Tax and Fair Work Regulations, allowing you to focus on your company’s development.
Eliminating costly errors and reducing administrative burdens is only a selection of the ways that we can transform the way you work. We ensure that all employees are paid correctly and on time, whilst staying up to date with the changing legislation, to ensure your business stays compliant with workplace laws.
Whether you are a start-up company or a large and ever-growing organisation, improve your data security and save valuable time for you and your business by choosing to outsource your Payroll in Australia today. With the support of our trusted experts, you can be assured of enhancing your long-term advancements and cutting unnecessary costs with ease.
As of the current pay rates in Australia, the national minimum wage and the legal minimum an employer can pay an adult employee is:
- A$24.95 per hour, before tax, or
- A$948.00 per week, based on a 38-hour full-time week.
These rates took effect from 1st July 2025 and are set by the Fair Work Commission.
The national minimum wage applies only to employees who are not covered by an industry award or enterprise agreement. Most workers in Australia are covered by one of these, meaning they must be paid at least the award minimum rate, which is typically higher than the national minimum.
Casual workers typically receive an extra ‘casual loading’, typically around 25%, on top of their base rate, as compensation for fewer entitlements, such as paid leave.
There are lower statutory minimum rates for junior employees, apprentices, and trainees, including some persons with disabilities, set as percentages of the adult rate.
Australia has progressively higher tax rates than many other countries, depending on how much you earn. Anyone earning less than A$18,200 will be in a tax-free threshold.
Excluding the Medicare levy, which is typically 2% of taxable income, tax rates may look like this:
- A$18,201 – $45,000: 16% on each dollar over A$18,201
- A$45,001 – A$135,000: 30% on each dollar over A$45,000
- $135,001 – $190,000: 37% on each dollar over $135,000
- $190,001+: 45% on each dollar above that threshold
In Australia, pension contributions typically refer to superannuation, the retirement savings system that employers must pay into.
Superannuation (known as Super) is money put aside during your working life to fund your retirement, which is paid into a ‘super fund’. It is regulated by the Australian Taxation Office and governed by the Superannuation Guarantee Act 1992. Employers must pay a percentage of their ordinary earnings into their super fund. As of 1st July 2025, this would be 12% of the ordinary time earnings.
Super is typically taxed at 15%, and can be accessed from age 60+, with full access at age 65. It is possible to access this; however, depending on special circumstances, such as severe illness.
You can also contribute your own money to your pension, such as concessional contributions, which are salary sacrifices and are typically taxed at 15% within your super fund. The annual cap for a concessional contribution is A$30,000.
Non-concessional contributions are deducted from your take-home pay and capped at A$120,000 per year. By doing so, you will not be taxed when entering ‘Super’.
In Australia, the typical working hours are set by national workplace laws under the Fair Work Act 2009.
For most employees, this will mean 38 hours per week, worked over 5 days and typically around 7.6 hours per day. It is possible to work more than 38 hours per week, but only if the hours are ‘reasonable’. This would depend on health and safety, personal circumstances, workplace needs or industry award rules.
Many workers are covered by a modern award or enterprise agreement, which can often include overtime rates, weekend penalty rates, public holiday penalty rates and minimum break requirements.
For part-time workers, you will be given regular hours each week with leave entitlements, whereas casual workers have no guaranteed hours, no paid annual/sick leave, and are typically paid a 25% casual loading.
In Australia, statutory leave, the legal minimum leave entitlement, comes from the National Employment Standards (NES) under the Fair Work Act 2009, often overseen by the Fair Work Ombudsman.
The primary type of statutory leave is annual paid holiday leave. For full-time employees, this is typically 4 paid weeks per year, and 5 for some shift workers. For part-time employees, this is typically 4 weeks per year (pro rata). However, if you are a casual employee, you will not be allowed any paid annual leave; instead, you will receive a 25% casual loading. If your annual leave is unused, it will be carried over to the next year.
With personal/carer’s leave, full-time workers will receive 10 days of paid leave per year, and part-time workers will receive the same on a pro-rata basis. This will be used when you are sick, injured, or caring for an immediate family member. Any unused leave will be accumulated year to year.
Compassionate leave is provided at 2 days per occasion and is paid for permanent employees. Unfortunately, casual workers will not be paid. This can be used for the death of a close family member or for life-threatening illnesses/injuries for family members.
Parental leave is available for up to 12 months; however, it is unpaid. Separately, you may be eligible for paid parental leave through Services Australia.
On public holidays, employees are entitled to a paid day off for any normal working day, or penalty rates if they work.
Termination of employment in Australia is governed mainly by the National Employment Standards (NES) under the Fair Work Act 2009, enforced by the Fair Work Commission.
When an employer terminates employment (other than for serious misconduct), they must provide a minimum notice period or pay instead of notice.
The minimum notice period is as follows:
- Less than one year of service: 1 week
- 1-3 years of service: 2 weeks
- 3-5 years of service: 3 weeks
- Over 5 years of service: 4 weeks
Additionally, an extra 1 week will be added if the employee is over 45 years old and has at least 2 years of service.
For immediate dismissal, no notice is required for offences such as theft, fraud or violence.
If an employee is being made redundant, they will receive a notice period and redundancy pay. Redundancy pay is typically up to 16 weeks’ pay, depending on years of service. If the business has fewer than 15 employees, however, they are not required to provide redundancy pay.
On termination, an employee must be paid:
- Outstanding wages
- Accrued but unused annual leave
- Accrued long service leave (if applicable)
- Notice (if paid)
- Redundancy pay (if applicable)
If there is an outright resignation, the employee must give notice as required by their contract or award, and must still pay their final entitlements. For more options and information, explore our extensive choice of payroll solutions.
