Hello everyone,
Understanding the remuneration structure when living and working in Australia will help you better navigate professional life. In order to help other expats and soon-to-be expats grasp everything from gross pay to net pay, we invite you to share your experience.
How is your remuneration structured in Australia: basic salary, commissions, 13th month, etc.?
What are the common or mandatory allowances included such as transports, health insurance, pension contributions…?
What are the taxes and social contributions to be considered, especially if deduction is made at source?
What is the regular salary payment frequency in Australia: monthly, bi-montlhy, weekly…?
Is it acceptable or common to negotiate salary or benefits?
Are there any specific differences in remuneration structure between expats and locals?
Share your insights and experience. Thank you for your contribution.
Cheryl
Expat.com Team - @Cheryl
Cheryl, here's a breakdown of your questions for Australia
Here’s a detailed overview of remuneration and employment compensation practices in Australia, based on common HR structures, government regulations, and typical corporate practices:
1. Structure of Remuneration
Australian remuneration packages are generally straightforward and salary-based.
Base Salary:
The core component. Usually expressed as an annual gross amount, e.g., AUD 90,000 per year.
Superannuation (Pension Contribution):
Mandatory employer contribution to a retirement fund (currently 11.5% of base salary in 2025; will gradually increase to 12% by 2026).
This is in addition to the base salary, unless stated as “salary package inclusive of super”.
Bonuses & Commissions:
Common in sales, finance, consulting, and executive roles.
Usually structured as:
Performance bonuses (annual or quarterly)
Commissions (sales-related)
Profit sharing / incentives (for senior roles)
13th Month Pay:
Not common or mandatory in Australia. Salaries are annualized, so there is no additional “13th month” payment as in some other countries.
🚗 2. Common or Mandatory Allowances / Benefits
Unlike some regions (e.g., Asia or the Middle East), Australia’s system bundles most compensation into the base salary. However, there are a few standard inclusions:
Benefit / Allowance Common? Mandatory?
Superannuation ✅ Yes ✅ Yes Employer must contribute 11.5% to retirement fund
Health Insurance ✅ Common ❌ No Australia has public healthcare (Medicare); some employers offer private cover as a perk
Transport Allowance / Car ⚙️ Sometimes ❌ No May apply for roles requiring travel; otherwise, employees cover commuting costs
Mobile / Internet Allowance ⚙️ Sometimes ❌ No Typically for field roles or remote work
Paid Leave ✅ Yes ✅ Yes 4 weeks annual leave, 10–12 public holidays, sick leave, parental leave
Long Service Leave ✅ Yes ✅ Yes (after 7–10 years) Varies by state
💰 3. Taxes & Social Contributions
Australia operates a Pay-As-You-Go (PAYG) income tax system, meaning taxes are deducted at source by the employer.
Employee Deductions:
Income Tax:
Progressive rates (2025):
0% up to AUD 18,200
19% from 18,201–45,000
30% from 45,001–135,000
37% from 135,001–190,000
45% over 190,000
Medicare Levy:
2% of taxable income (funds the public healthcare system).
Employees do not contribute directly to pension (superannuation) unless they choose to add voluntary contributions.
Employer Contributions:
Superannuation: 11.5% of salary
Payroll Tax: (State-based, paid by employer) – applicable if total payroll exceeds a threshold (varies by state, ~4.85–6.85%).
📆 4. Salary Payment Frequency
Most common: Fortnightly (every two weeks)
Also common: Monthly (especially for senior roles or multinationals)
Weekly: Common in trades, hospitality, and casual jobs
🤝 5. Salary & Benefit Negotiation
Negotiation is absolutely acceptable and common in Australia, particularly for professional and managerial roles.
Typical areas for negotiation:
Base salary (most common)
Superannuation inclusion/exclusion
Flexible working arrangements (remote, hybrid)
Annual leave loading (extra 17.5% on leave pay in some awards)
Professional development budget
Bonus eligibility or structure
Relocation or visa assistance (for expats)
However, salary ranges are often transparent, especially in public sector or unionized roles.
🌏 6. Expat vs. Local Differences
Australia has equal pay regulations, so locals and expats are typically on the same structure for equivalent roles. However, expats may receive additional support, especially if relocating:
Relocation or housing allowance
Visa sponsorship costs
Temporary accommodation on arrival
Flights (initial or annual home leave — rare outside corporate/global mobility roles)
Otherwise, the salary itself is not usually higher for expats.
🧭 7. Key Takeaways
Aspect Typical Practice
Remuneration base Annual salary (with or without super)
Superannuation (pension) 11.5% employer-paid
Taxation PAYG withholding, progressive tax + 2% Medicare
Payment frequency Fortnightly or monthly
13th month salary Not applicable
Negotiation Common and accepted
Expat benefits Only for relocation or visa needs
Healthcare Public system (Medicare) + optional private cover
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