How much does it cost to hire an employee through an EOR in Australia?

EOR pricing typically ranges from $400–$700 per month per employee, plus the employee's base salary and benefits. Beyond the EOR fee, you'll pay: (1) **Base salary**—market rate for the role in Australia. (2) **Employer contributions**—approximately 11% on top of salary for taxes, social insurance, and mandatory benefits. (3) **Optional benefits**—health insurance, bonuses, stock options. For example, hiring a developer earning $3,000/month would cost approximately $3,000 + (11% = $330) + $500 EOR fee = $3830/month total.

Is using an EOR legally safe in Australia?

Yes, using an EOR in Australia is fully legal and compliant when you work with established providers like Deel, Remote, or Oyster. These providers are registered employers in Australia and handle all legal obligations. Australia has strong employee protections under the Fair Work Act. Superannuation (retirement savings) is mandatory and rising (11% currently, increasing to 12.75%). The National Minimum Wage is high compared to offshore locations. Termination requires Fair Work process. Australian labor law is well-established and consistently enforced. The EOR assumes the legal employer role, so you avoid misclassification risks that come with contractor arrangements. However, choose reputable EOR providers with proven track records in Australia—smaller or unregistered providers carry significant risk.

What are the mandatory benefits I need to provide to employees in Australia?

Australia requires employers to provide several mandatory benefits: - **Superannuation**: Mandatory 11% retirement fund contribution (increasing to 12.75% by 2025). - **Annual Leave**: Minimum 4 weeks per year. Paid out at separation. - **Public Holidays**: 10-13 days per year depending on state/territory. - **Long Service Leave**: After 10 years: 1-1.67 weeks per year of service. - **Minimum Wage**: National minimum wage applies (indexed yearly, currently $23.23/hour). These benefits are built into the EOR fee and handled automatically by your EOR provider. You don't need to manage them separately—just pay the total monthly fee and the EOR handles all compliance.

How long does it take to onboard an employee through an EOR in Australia?

With an EOR, the typical timeline is 10 days from offer acceptance to the employee's first paycheck. The process includes: (1) **Days 1–2**: Background checks and document verification. (2) **Days 3–5**: Employment contract in local language, tax registration. (3) **Days 6–10**: Payroll setup, benefits enrollment, system access. This is dramatically faster than hiring via a subsidiary (which typically takes 2–3 months), making EOR ideal for time-sensitive hiring.

Should I use an EOR or set up a legal subsidiary in Australia?

Use an **EOR** if you're: hiring your first employee in Australia, want to avoid legal complexity and ongoing compliance costs, or plan to hire fewer than 5 people. EORs typically cost $400–$700/month per employee and offer simple, predictable pricing with zero additional administrative burden. Use a **subsidiary** if you're: planning to hire 10+ people in Australia, want direct control over hiring and contracts, or are already established in the country. Setting up a subsidiary takes 2–3 months and costs $2,000–$10,000 in legal and accounting fees, but gives you flexibility and lower per-employee costs long-term. For most small companies hiring their first international team, EOR is the faster, safer choice.

Which EOR providers support hiring in Australia?

The major EOR providers supporting Australia are: **Deel** (150+ countries), **Remote** (80+ countries), **Oyster** (130+ countries), **Rippling** (50+ countries), and **Multiplier** (150+ countries). Each offers similar core features—payroll, compliance, tax handling—with varying prices, customer support, and platform quality. Compare based on: (1) **Price**: $400–$700/month, (2) **Support quality**: Check reviews for your timezone, (3) **Feature set**: Some offer built-in benefits, others are payroll-only, (4) **User experience**: Platform simplicity varies significantly.

What happens to my EOR employee if I stop using the EOR service?

If you decide to leave an EOR service, your options depend on your long-term plan: (1) **Switch to another EOR**: The employee transitions to a new EOR provider within days—no job loss. (2) **Set up a local subsidiary**: The employee becomes employed by your subsidiary. Most EOR providers can help facilitate this transition. (3) **Separate from the employee**: You can terminate the employment agreement with notice (typically 30–60 days in Australia), following all local severance requirements. Because the EOR is the legal employer, any transitions or terminations must comply with Australia's labor laws—another reason to use established, licensed EOR providers.

Employer of Record in Australia

Onboarding Time

10 days

Employer Contributions

11%

EOR Providers

Currency

Australian Dollar (AUD)

Employer Cost Breakdown in Australia

11%

$550

Monthly cost on $5k salary

~$500

Typical EOR fee/mo

10d

Onboarding time

Australia is a developed economy with excellent tech talent, particularly in Sydney and Melbourne. Australian developers are skilled, English-fluent, and culturally similar to UK/US professionals. The country offers high quality of life and employee protections. Salaries are moderate (similar to UK, slightly below Germany) with generous leave policies. Key employment obligations: mandatory 11% Superannuation (retirement savings, increasing to 12.75%), minimum 4 weeks annual leave, long service leave after 10 years, and strict Fair Work Act compliance. The National Minimum Wage is high (~$23.23/hour), so hiring junior roles may be less economical than offshore alternatives. Using an EOR in Australia simplifies Superannuation enrollment, PAYG tax registration, WorkCover compliance, and ensures Fair Work Act adherence. Onboarding takes 10 days. You pay the EOR fee plus salary and approximately 11% Super contributions (rising to 12.75%).

EOR Providers for Australia

Compare the leading Employer of Record providers for hiring in Australia. All prices are monthly and exclude employee salary and benefits.

Provider	Monthly Fee	Coverage	Best For	Key Features	Action
Deel	$599	150+	Companies scaling globally	Fast onboardingBuilt-in compliance	Get Quote
Remote	$599	80+	Mid-size companies	Own legal entitiesBenefits management	Get Quote
Oyster	$599	130+	Remote-first companies	Guided hiringLocal benefits	Get Quote
Rippling	$600	50+	Tech companies	Unified HR platformIT management	Get Quote
Multiplier	$400	150+	Cost-conscious companies	Competitive pricingMulti-currency payroll	Get Quote

Tip: Most EOR providers offer a free trial or demo. Contact multiple providers to compare features, customer support quality, and specific support for Australia. Pricing and coverage may change after 2026.

Legal Requirements in Australia

ABN (Australian Business Number) registration

Superannuation fund enrollment (mandatory 11% contribution)

PAYG (Pay As You Go) tax registration

Compliance with Fair Work Act

WorkCover insurance registration

Mandatory Benefits

Benefit	Description
Superannuation	Mandatory 11% retirement fund contribution (increasing to 12.75% by 2025).
Annual Leave	Minimum 4 weeks per year. Paid out at separation.
Public Holidays	10-13 days per year depending on state/territory.
Long Service Leave	After 10 years: 1-1.67 weeks per year of service.
Minimum Wage	National minimum wage applies (indexed yearly, currently $23.23/hour).

Compliance Guide

**Employment Contract**: Must outline job title, duties, salary, benefits, work schedule (typically 38 hours/week), annual leave entitlement, and termination conditions. **Superannuation**: Mandatory contribution to employee's nominated superannuation fund. Currently 11% of ordinary time earnings (increasing to 12.75% by 2025). Contributions must be made at least quarterly. **PAYG Withholding**: Income tax is withheld from salary based on tax brackets and the employee's withholding declaration. **Annual Leave**: Minimum 4 weeks per year. Leave accrues from day 1. Upon termination, all unused leave must be paid out in full. **Long Service Leave**: After 10 years continuous service, employees accrue 1 week per year (some states allow 1.67 weeks after 10 years). This is a significant liability to plan for. **Public Holidays**: 10-13 public holidays depending on state/territory. Employees working public holidays must be paid at least 1.5x ordinary rate (or double time + penalty rate). **Minimum Wage**: National Minimum Wage applies (currently $23.23/hour AUD, indexed annually). Many awards (industry-specific standards) specify higher rates for different roles. **Termination and Unfair Dismissal**: The Fair Work Act provides strong protection. Termination must be for valid reason with procedural fairness. Employees can claim unfair dismissal if not given due process. **Paid Parental Leave**: Both parents are entitled to up to 12 months unpaid leave; some paid leave is available through government scheme. **WorkCover**: Employers must register for workplace injury insurance (WorkCover). Premium varies by industry risk.

Why Use an EOR in Australia?

Australia offers access to high-quality tech talent, English language, and cultural affinity to US. Major cities (Sydney, Melbourne) have growing tech scenes. An EOR in Australia handles Superannuation enrollment, PAYG tax, WorkCover, and Fair Work compliance. Useful for companies seeking premium talent with excellent work-life balance and protections.

Other EOR Options in Oceania

New Zealand

Onboarding: 10 days

3% contributions→

Hiring in Australia: FAQs

An Employer of Record (EOR) is a third-party company that becomes the legal employer of your remote workers in Australia. You define the role, manage the day-to-day work, and set the compensation. The EOR handles all employer responsibilities: payroll, benefits, tax compliance, employment contracts, and labor law compliance. This means you can hire full-time employees in Australia without establishing a subsidiary or legal entity. The process typically takes 10 days from offer to first paycheck.

Start hiring talent in Australia

Deel handles payroll, compliance, and benefits. No local entity needed.

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