Australia

What are the mandatory benefits in Australia?

Employees in Australia are guaranteed certain benefits that the employer is responsible for safeguarding. In some cases, the employer must also make contributions to employee benefits. The total expected employer contribution to monthly benefits (Medicare and Superannuation) is 10.5%, or 15.35% when factoring in the 4.85% payroll tax. 


Employee social security (national pension fund), healthcare, and leave benefits are managed as follows: 


  • Superannuation: Employers pay into this account which serves as a national pension fund. Employers must contribute 9.5% of an employee's monthly base salary, up to AUD 21,002.06 (USD 16,051.56) per year.  
  • Healthcare: Australian employers must make a monthly Medicare contribution as a percentage of an employee’s base salary—currently set at 1% of an employee’s monthly base salary. Medicare in Australia covers nearly all of an employee’s healthcare needs except physiotherapy, dental, and vision.  
  • Required leave: Employees are entitled to certain leave benefits, including paid time off, sick leave, and parental leave. 


If you have questions about benefit provisions in employment contracts in Australia, please get in touch with our team today!

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