Employer of Record (EOR) in Australia
Employer of Record (EOR) in Australia helps companies hire skilled talent without setting up a local entity. Australia has a workforce of nearly 14 million, well known for its expertise in technology, healthcare, finance, mining, and engineering. Businesses often look for EOR services in Australia to manage payroll, tax compliance, and employment contracts under strict labor laws. EOR providers simplify the hiring process, reduce compliance risks, and ensure smooth onboarding. This makes Australia a key destination for companies looking to expand operations, hire remote employees, or establish teams with full compliance.
About Australia
Australia, officially the Commonwealth of Australia, is a developed nation located in the Southern Hemisphere with a population of around 26 million. It is the world’s sixth-largest country by land area and boasts a strong economy driven by sectors such as mining, finance, healthcare, education, and information technology.
The country is well known for its highly educated workforce, with English as the official language, which makes it a favorable location for global companies seeking skilled professionals. Its cities, including Sydney, Melbourne, and Brisbane, are business hubs with strong international connectivity. Australia also has high living standards, advanced infrastructure, and a stable political environment, making it attractive for long-term business expansion.
Employment Terms and Regulations
Types of Contracts
Permanent, fixed-term, casual, and part-time.
Working Hours
Standard full-time is 38 hours per week. Overtime rules vary by award or enterprise agreement.
Minimum Wage
AUD 24.10 per hour (as of July 2025, reviewed annually by the Fair Work Commission).
Probation Period
Typically 3 to 6 months depending on the role and agreement.
Taxation and Contributions
- Income Tax: Progressive rates from 0% to 45%.
- Employer Contribution (Superannuation): 11% of ordinary earnings (mandatory retirement savings).
- Payroll Tax: Varies by state (generally 4.75%–6.85%) with thresholds applied.
Types of Leave
- Annual Leave: 20 days per year (full-time).
- Public Holidays: 7–12 per year depending on state.
- Sick/Carer’s Leave: 10 days paid leave annually.
- Parental Leave: Up to 18 weeks government-funded leave plus employer entitlements.
Employee Benefits
- Superannuation (mandatory retirement savings).
- Health and safety protections under Fair Work Act.
- Flexible working arrangements.
- Additional benefits like private health insurance, performance bonuses, and allowances depending on employers.
Termination Process
Termination requires notice (usually 1–4 weeks based on tenure). Redundancies must follow strict Fair Work guidelines. Unfair dismissal claims can be filed through the Fair Work Commission.
Employer Taxes
Employers contribute around 11% for superannuation plus state-based payroll tax and workers’ compensation insurance, typically bringing the total employer cost to 13%–16% of gross salary.
EMPLOYER TAXES
13% – 16% (Estimated)
FAQ's
How STM Manages Employment in India
Establishing an entity in every hiring location can be cost-prohibitive. STM simplifies the process by employing and paying your Indian talent on your behalf. We handle the intricate HR procedures and employment contracts in compliance with local laws. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent globally.
Payment Processes for Indian Employees
We streamline payroll management for your Indian workforce. Employee hours, leaves, holidays, bonuses, and commissions are meticulously calculated. STM invoices you around the 15th of each month in your preferred currency, including US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD). This ensures your Indian employees receive their salaries promptly in Indian Rupees (INR). Simplify further by consolidating your global team’s salaries into a single payment.
Full-time Employees vs. Global Contractors
Contractors engage with multiple companies and are self-employed, while full-time employees focus solely on their employer and receive additional benefits like health insurance, equity, and time off. While hiring international contractors can be cost-effective, it comes with misclassification risks. Partnering with an EOR for contractor onboarding and payments ensures compliant and timely compensation.
Reliable Employee Support
Our platform offers accessible support for employees and employers with inquiries about benefits, visas, and global employment in India. Utilize the chat function to connect with our expert team. Additionally, every STM client is assigned a dedicated account manager, serving as the primary contact for global HR assistance.
