Australia Compensation/BenefitsReading Time: 2 minutes
Australia has extensive compensation and benefits laws, as well as many other work protections that can make expanding there difficult. Regulations also vary by state, making it critical to understand both federal laws and those in the region where your business is located.
Australia’s Compensation Laws
Australia’s federal minimum wage is AU$13.74, which applies to employees over 21 years old. The country’s Australian Pay and Classification Scale lists pay rates for different jobs in various states. If a particular position is not on the scale, the employee must receive the federal minimum wage. Australian compensation laws also dictate a maximum 38-hour work week, although necessary shifts have some greater flexibility.
You are required to give employees a pay stub within one working day of paying them. Many employers in Australia use an online banking transfer system to give out payments and send pay stubs.
Guaranteed Benefits in Australia
If you do not choose to work with an Australia benefit outsourcing company, you will need to disperse benefits yourself. Employees have the right to certain benefits, including health care. Although it is not mandated, many employers choose to give employees an allowance instead of buying a private health insurance plan on the employee’s behalf. Also, any employee with a taxable income over a certain level pays 2% of their income to Medicare — the country’s national healthcare program.
Your employees are guaranteed certain time off and other leaves for vacation, sick time, and maternity or paternity circumstances. Full-time employees must get a minimum of four weeks of vacation time a year.
As part of national laws, all full-time employees are given ten days of paid personal, sick, or caregivers’ leave each year. Other protections are also in place for parental leave if employees meet the eligibility requirements.
Australia Benefit Management
If you decide to handle both guaranteed and supplemental benefits yourself, expect to spend a significant amount of time, money, and travel. You must stay well-versed on all Australia compensation laws and benefit management to remain compliant and avoid costly fines.
Instead of sourcing benefits for employees and figuring out Australia’s employment laws by yourself, you can work with a global PEO such as Globalization Partners. We hire employees on your behalf and find supplemental benefits that will keep you ahead of the competition. We even handle all compensation and payroll duties.
Benefit and Compensation Restrictions
Australia’s minimum wage laws and maximum working hours per week — listed above — are two of the most significant restrictions in Australia compensation law. Stay aware of these restrictions as you hire employees.
Instead of worrying about guaranteed benefits and compensation, try outsourcing benefit management with Globalization Partners. We will help you hire employees, give them the benefits they deserve, and take the stress of liability off your shoulders. Contact us today to learn more about our services.