The estimated employer cost in Australia is approximately 18.55% on top of gross salary. The main components are set out in the table below.
| Component | Notes |
| Superannuation | Employer contribution of 12% of ordinary time earnings, effective from 1 July 2025. Paid into the employee's nominated superannuation fund. |
| State payroll tax | Average rate of 5.5%. Applies once the employer's total Australian payroll exceeds the applicable state or territory threshold. Rates and thresholds vary by state. |
| Workers' compensation | 1% of gross salary. Mandatory insurance covering workplace injuries and occupational illness. Rate varies by state and industry classification. |
| Mandatory training levy | 0.05% of gross salary. Applicable in certain states and territories. |
| State payroll tax thresholds and rates vary significantly across Australia's eight states and territories. Danbro International will confirm the applicable rates based on the employee's work location during client onboarding. |
The following statutory benefits apply to all employees in Australia under the National Employment Standards (NES) and are included within the standard cost structure:
• Superannuation contributions at 12% of ordinary time earnings, paid into the employee's nominated fund.
• Access to Medicare, Australia's national public health insurance scheme, for eligible employees. Employers are not required to provide private health insurance.
• Paid personal and carer's leave of 10 days per year, accruing progressively.
• Paid compassionate leave of 2 days per bereavement event.
• Unpaid parental leave of up to 12 months, with the right to request an additional 12 months.
• Government-funded paid parental leave under the Paid Parental Leave Act 2010, administered by Services Australia.
| Australia's National Employment Standards set minimum entitlements for all national system employees. These cannot be displaced by contract or enterprise agreement. Danbro International will confirm applicable award or agreement coverage during onboarding. |
Fixed-term contracts in Australia are subject to statutory limitations under the Fair Work Act 2009 (Cth). Employers generally must not engage an employee on a fixed-term contract that:
• Exceeds two years in total duration, including any extensions or renewals.
• Is renewed or extended more than once.
• Is used to replace a previous fixed-term contract for the same or a substantially similar role.
Employees on fixed-term contracts must be provided with a Fixed Term Contract Information Statement at the time the contract is entered into.
| Exceptions to the two-year limitation apply in certain circumstances, including roles covered by a registered agreement, positions requiring specific specialist skills, or government-funded work with a defined end date. Danbro International will advise on the appropriate contract structure during onboarding. |
Annual leave and public holidays
Full-time employees in Australia are entitled to 4 weeks (20 days) of paid annual leave for each year of service under the National Employment Standards. Leave accrues progressively based on ordinary hours worked and accumulates year to year if unused. Accrued leave is paid out at termination.
Shift workers may be entitled to 5 weeks of annual leave per year under applicable modern awards or enterprise agreements.
National public holidays in Australia in 2026 (8 days; state and territory holidays vary):
| Date | Holiday |
| 1 January 2026 | New Year's Day |
| 26 January 2026 | Australia Day |
| 3 April 2026 | Good Friday |
| 4 April 2026 | Easter Saturday |
| 6 April 2026 | Easter Monday |
| 25 April 2026 | ANZAC Day |
| 8 June 2026 | King's Birthday (most states) |
| 25 December 2026 | Christmas Day |
| 26 December 2026 | Boxing Day |
| Each state and territory observes additional public holidays. The King's Birthday is observed on different dates in Queensland and Western Australia. Danbro International will confirm applicable holidays based on the employee's work location during onboarding. |
There is no statutory requirement to include a probation period in an employment contract in Australia. Where included, probation periods are typically up to 6 months in practice.
The minimum employment period under the Fair Work Act 2009 (Cth) is 6 months for employers with 15 or more employees (12 months for small business employers). An employee cannot make an unfair dismissal claim until this minimum period has elapsed. This period runs concurrently with any contractual probation period.
| The minimum employment period provides employers with a meaningful window to assess performance before unfair dismissal protections apply. Danbro International recommends establishing clear performance expectations and conducting regular check-ins from the commencement of employment. |
Minimum notice periods for employer-initiated termination are set out in the National Employment Standards and scale with length of service as follows:
• Less than 1 year of service: 1 week
• 1 year to less than 3 years: 2 weeks
• 3 years to less than 5 years: 3 weeks
• 5 years or more: 4 weeks
An additional week of notice applies for employees over 45 years of age who have completed at least 2 years of continuous service.
For employee-initiated resignation, the Danbro International standard contract requires 4 weeks' notice. Payment in lieu of notice is permitted in all cases.
| Contractual notice periods may exceed the statutory minimums. Danbro International will confirm the applicable notice period based on the employee's contract and service record prior to any termination action. |
Termination of employment in Australia must comply with the Fair Work Act 2009 (Cth), the National Employment Standards, any applicable modern award, and the terms of the employment contract.
Termination may be initiated by either the employer or the employee:
• Employer-initiated termination must be for a valid reason related to the employee's capacity, conduct, or genuine operational requirements. A fair process must be followed, including notifying the employee of the reason and providing an opportunity to respond.
• Employee-initiated resignation requires the employee to provide the contractual notice period.
• Redundancy must be genuine and follow the applicable consultation obligations under the relevant modern award or enterprise agreement. Statutory redundancy pay applies where the employee has completed at least one year of continuous service.
| HR must be consulted in advance of all terminations. Dismissal without a valid reason or fair process can give rise to an unfair dismissal or general protections claim under the Fair Work Act. Danbro International strongly recommends engaging our HR team at the earliest stage of any contemplated termination. |
Upon termination, employees are entitled to the following payments:
• All outstanding wages and remuneration up to the termination date.
• Payment in lieu of notice, where notice is not being worked.
• Accrued and unused annual leave, paid out at the employee's ordinary rate of pay.
• Redundancy pay, where applicable, calculated on the basis of length of continuous service as set out in the National Employment Standards.
Statutory redundancy pay under the NES scales as follows:
• 1 to 2 years of service: 4 weeks' pay
• 2 to 3 years: 6 weeks' pay
• 3 to 4 years: 7 weeks' pay
• 4 to 5 years: 8 weeks' pay
• 5 to 6 years: 10 weeks' pay
• 6 to 7 years: 11 weeks' pay
• 7 to 8 years: 13 weeks' pay
• 8 to 9 years: 14 weeks' pay
• 9 to 10 years: 16 weeks' pay
• 10 or more years: 12 weeks' pay
| Redundancy pay does not apply to employees of small businesses (fewer than 15 employees) or where the employee is dismissed for serious misconduct. A full cost modelling exercise is recommended before initiating any redundancy process. |
The following supplemental benefits can be arranged for employees in Australia as part of a competitive total compensation package. These benefits represent an additional cost to the client:
• Private health insurance
• Travel insurance
The standard pay cycle for employees in Australia processed through Danbro International is monthly. Salaries are paid on the last working day of each month.
| Please contact your Danbro International representative to confirm cut-off and processing dates for this market. |
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