I'm hiring my first employee
Super obligations, awards, leave, payslips, and everything you need to know as a new employer.
Before you hire
Before hiring, you need: an ABN, registration as an employer with the ATO, a default superannuation fund, workers compensation insurance, and to identify the correct Modern Award for the role. You should also have an employment contract, a payroll system, and understand your record-keeping obligations.
Finding the right award
Most employees are covered by a Modern Award based on their industry or occupation. The award sets minimum pay rates, hours of work, breaks, penalty rates, and leave entitlements. Use the Award Finder to identify which award applies, then look up the correct classification level and pay rate.
Superannuation obligations
You must pay super at the Superannuation Guarantee rate of 12% (from 1 July 2025) on top of an employee's ordinary time earnings. Since 1 July 2026, under Payday Super, super must reach the employee's nominated fund within 7 business days of each payday (it was previously due at least quarterly). There is no minimum earnings threshold — you must pay super from the first dollar. Late super payments attract the Super Guarantee Charge.
Pay slip requirements
You must provide a pay slip within 1 working day of payment. Pay slips must include: your business name and ABN, the employee's name, pay period and date, gross and net pay, hourly rate or salary, hours worked, any loadings/penalties/allowances, deductions, and super contributions. Use our Pay Slip Checker to ensure compliance.
Record keeping
You must keep employee records for 7 years, including: employment contracts, pay records, hours worked, leave taken, superannuation contributions, tax file number declarations, and termination records. Failure to keep proper records can result in penalties of up to $16,500 per contravention.
Understanding the true cost
The cost of an employee goes well beyond their salary. Factor in: superannuation (12%), workers comp insurance (1-5% depending on industry), payroll tax (if above state threshold), leave loading (17.5% on annual leave), annual leave accrual, personal leave accrual, and training costs. Use our Cost of Employment Calculator to get the full picture.
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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.
Related reading
Super guarantee is 12% from 1 July 2025. Check your employer is paying the right amount — $5 billion goes unpaid every year. Free calculator included.
Payslip Requirements Australia — What Your Employer MUST Include (Checklist)Australian payslips must include 12 mandatory items or your employer faces fines up to $19,800 per violation. Full checklist: ABN, gross/net pay, super, tax withheld, leave balances, and more. Free 30-second compliance checker.
Can My Employer Change My Roster Without Notice? (Know Your Rights)Your employer must give 7 days' notice for roster changes under most awards. Here's when you can say NO — plus what to do if they change your hours without asking.
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