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Public Holidays Calendar

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Australia 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Monday Jan-3 Day in Lieu of New Year's Day Holidays which fall on a weekend move to the next working day
Wednesday Jan-26 Australia Day
Friday Apr-15 Good Friday
Saturday Apr-16 Easter Saturday
Sunday Apr-17 Easter Sunday
Monday Apr-18 Easter Monday
Monday Apr-25 Anzac Day
Thursday Sep-22 National Day of Mourning for Her Majesty The Queen
Sunday Dec-25 Christmas Day
Monday Dec-26 Boxing Day/Proclamation Day
Tuesday Dec-27 Day in Lieu of Christmas Day

Payroll and Benefits Guide

Last updated: Jan 03, 2021
Australian Dollar (AUD)
Payroll Frequency
Employer Taxes

Papaya Offers Complete Payroll, PEO and Contractor Management Services For Australia

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Australian Dollar (AUD)
Date Format
Fiscal Year
1 July - 30 June
Public holidays calendar


Due to COVID-19, temporary changes in labor law have been enforced.  However, these changes are award-based and do not apply to all workers in Australia.  For more information, please visit the Australian government website.



Employer Payroll Contributions

New South Wales

Payroll Tax




Superannuation (capped at 21,002.06 AUD per year)

15.85% Total Employment Cost

Employer Payroll Contributions


Payroll Tax




Superannuation (capped at 21,002.06 AUD per year)

15.85% Total Employment Cost


Employee Income Tax


Income up to 18,200 AUD

0.19 AUD for each dollar between

18,201- 45,000 AUD

5,092.00 AUD + 0.325 AUD for each dollar between

45,000- 120,000 AUD

29,467 + 0.37 AUD for each dollar between

120,000- 180,000 AUD

51,667 AUD + 0.45 AUD for each dollar over

180,000 AUD and over

Minimum Wage


As of July 1, 2021, the minimum wage in Australia increased to 20.33 AUD per hour (772.60 AUD per week).


Payroll Cycle

Employees are paid weekly, bi-monthly, or monthly.   

There are no legal requirements to when an employee needs to be paid by, however, it is common to pay employees by the following schedule:

  • Monthly – By the 28th to the 30th of the month
  • Bi-weekly – Every second week on any agreed day (usually Wednesday or Thursday)
  • Bi-monthly – Every 15th and 30th

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours


The standard workweek is 38 hours.


Minimum employment conditions are outlined in the Fair Work Act, 2009 and Industrial Awards. Awards are either industry-based or occupation-based. Employees covered by Awards are generally paid overtime. Most Awards provide for overtime to be paid for time worked in excess of 38 hours per week, or in excess of 10 hours per day. Overtime or a penalty is generally paid to Award based employees for work performed on a weekend or a public holiday. 

If an employee is not an Award employee, they are considered to be “Award Free.” Award Free employees do not have a statutory right to be paid overtime. However, such employees do have the right to work only 38 plus reasonable additional hours per week. There is no formal definition of what is “reasonable additional hours,” however, such employees are generally expected to work overtime hours that are necessary to complete the job they are employed to do.  

Working Week



Paid Time Off

Full-time employees are entitled to 4 weeks of paid leave per year, while employees who work in shifts receive 5 weeks.

Public Holidays

Public holidays vary by state.

Sick Days

Employees are entitled to 10 days paid leave per year which can be used if the employee is sick or if they need to care for a family member. 

Maternity Leave

Mothers are entitled to 12 months unpaid maternity leave after working for 12 months with the same employer. Some employers provide paid maternity leave.

In addition, employees can apply to the Federal Government scheme which provides payment for 18 weeks of maternity leave.

Paternity Leave

Fathers are entitled to 5 days unpaid leave at the time of the birth or adoption of a child.

Employees can also apply to the Federal Government scheme for additional leave.

Parental Leave

Parental leave includes maternity and paternity leave, as well as leave for when a child is adopted.  To be eligible, an employee must have completed at least 12 months of employment.

Parental leave is an unpaid leave that lasts for 12 months, and it is possible to request an additional 12 months from the employer.

Other Leave

Bereavement– 2 days’ paid leave


Termination Process

Reason for termination varies based on the number of employees an employee has and the length and type of service:

  • 15 employees
    Length of Employment: Up to 6 months
    Type of employees: Permanent
    Reasons for terminations: No specific reason is needed
  • Over 15 employees:
    Length of Employment: 6 months+
    Type of employees: Permanent
    Reasons for terminations: A valid reason is needed
  • 15 employees or less:
    Length of Employment: Up to 12 months
    Type of employees: Permanent
    Reasons for terminations: No specific reason is needed
  • 15 employees or less or less
    Length of Employment: 12 months +
    Type of employees: Permanent
    Reasons for terminations: A valid reason is needed
  • Casual employees:
    Length of Employment: N/A
    Type of employees: Casual
    Reasons for terminations: Once employed for 12+ months, there must be a valid reason

Employees dismissed in the first 6 months of employment (or 12 months of employment if employed by a small business) cannot make a claim of “unfair dismissal” to the Fair Work Commission. However, there are some exceptions to this known as General Protections matters where there is no minimum engagement period applying.

Unfair dismissal applications are heard in the Fair Work Commission – a specialist employment tribunal.

Notice Period

The notice period is determined by the amount of time the employee has been employed:

  • Less than 1 year of employment: 1 weeks’ notice
  • 1-3 years of employment: 2 weeks’ notice
  • 3-5 years of employment: 3 weeks’ notice
  • 5+ years of employment: 4 weeks’

If the employee is over the age of 45 and has been employed for at least 2 years, they are entitled to an additional week of notice.

Severance Pay

Severance pay is given based on a continuous period of service, and the pay rate is given for ordinary hours worked:

  • At least 1 year but less than 2 years: 4 weeks’ severance pay
  • At least 2 years but less than 3 years: 6 weeks’ severance pay
  • At least 3 years but less than 4 years: 7 weeks’ severance pay
  • At least 4 years but less than 5 years: 8 weeks’ severance pay
  • At least 5 years but less than 6 years: 10 weeks’ severance pay
  • At least 6 years but less than 7 years: 11 weeks’ severance pay
  • At least 7 years but less than 8 years: 13 weeks’ severance pay
  • At least 8 years but less than 9 years: 14 weeks’ severance pay
  • At least 9 years but less than 10 years: 16 weeks’ severance pay
  • At least 10 years: 12 weeks’ severance pay

Probation Period

The probation period is 6 months, however, if an employer has 15 employees, it is extended to 12 months. In addition, employers are able to shorten the minimum probation period. In doing so, however, the employer forgoes the benefits of a probation period.



Australia has a diverse range of Visas that are intended to suit various professions. Each visa is unique and has specific requirements.

  • Employer Nomination Scheme (ENS) visa: Employers nominate an employee to live and work in Australia. Under this scheme there are three subclasses:
  • Direct entry stream
  • Labour agreement scheme
  • Temporary residence transition stream.

Processing time for these visas can take anywhere from 6-17 months.

  • Temporary activity and specialist visas – Short stay work visa for specific types or highly specialized work.

Temporary Work Visas

  • Temporary Skill Shortage visa – sponsorship needed
  • Temporary Graduate visa
  • Skilled – Recognised Graduate visa
  • Skilled Regional (Provisional) visa
  • Business Innovation and Investment (Provisional) visa– Sponsorship needed

Permanent Work Visas

  • Regional Sponsor Migration Scheme – Sponsorship needed
  • Permanent Residence (Skilled Regional) Visa Open for applications November 2022
  • Employer Nomination Scheme visa– Sponsorship needed
  • Skilled Independent visa
  • Skilled Nominated visa – Sponsorship needed
  • Skilled Regional visa
  • Business Innovation and Investment (Permanent) visa – Sponsorship needed
  • Business Talent (Permanent) Visa – Sponsorship needed
  • Distinguished Talent visa – Sponsorship needed
  • Distinguished Talent visa – Sponsorship needed



Goods and Service Tax (GST) is 10%.

For hiring in Australia without a local entity see our Australian PEO service

Version History

July 1, 2021
Minimum wage increased to 20.33 AUD per hour (772.60 AUD per week)
Superannuation increased to 10.00%
Stay up to date on payroll & employment law changes

Questions & Answers

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Brianna Rockport
Brianna Rockport
1 year ago

Who can request flexible work arrangement? How does it work? 

Emily Kuhnert
1 year ago

Hi Brianna, thank you for your question! This applies to all employees that are covered by the National Employment Standard (NES). Parents of school-age children, caregivers, disabled employees, employees over the age of 55, an employee experiencing violence from a family member, and a few others can request flexible work arrangements. This could mean reduces working hours, change in schedule, location where work is conducted. To be eligible, the employee must have completed at least 12 months of employment. The employee must make a formal written request detailing the reason for the request, and the employer has 21 days to respond and must give reason if the request is denied. It is important to note that there is no obligation on the employer side to grant the request.

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