In This Blog:
- ➤What does Same Job Same Pay mean?
- ➤Does Same Job Same Pay Apply to Small Business?
- ➤How Will Same Job Same Pay Change in 2026?
- ➤Will Labor Costs Increase Because of Same Job Same Pay?
- ➤What Roles Are Australian SMEs Moving Offshore?
- ➤How Remote Staff Helps AU SMEs Manage Rising Hiring Costs
- ➤FAQs
- ➤Same Job, Same Pay, Different Conclusion
Australian SMEs need to hire workers: the understatement of the decade. A phrase that hits closer to home these days and will keep knocking on doors in the coming years.
The Same Job Same Pay legislation isn’t waiting in the wings, but has already flown in. For business owners, it just made hiring locally more complicated than it used to be.
SJSP reforms have implemented increases for casual and labour hire workers. That’s a good thing, just not for companies working within a certain budgeting scheme.
Then there’s Payday Super on top of it, too.
What does SJSP change? Should you be worried? How will it affect hybrid or remote teams?
How is offshoring turning into the workaround, but much more than that, for AU SMBs?
What does Same Job Same Pay mean?
Same Job, Same Pay is an Australian workplace law that can require labour hire workers to receive at least the same pay they would earn if they were directly employed by the host business under its enterprise agreement. It does not automatically apply to every labour hire worker or arrangement; the Fair Work Commission must make a Regulated Labour Hire Arrangement Order before the requirement takes effect.
SJSP, or Same Job, Same Pay, requires labour hire workers to receive at least the pay rate they would get if they were directly employed under the host business’s enterprise agreement. But there are intricacies to it, in that this is true only when a qualifying Fair Work Commission order applies.
In effect, this immediately implies that the rules are now different for businesses relying on labour hire. The “cheaper labour-hire” pay rate is no longer allowed in certain circumstances, since labour workers doing the same work as employees under the host’s enterprise or employee pay agreement are to be paid equal pay. The same wage.
Some numbers to note in different sectors after SJSP:
- Kmart’s Lytton distribution centre: some casual warehouse workers got an $8 to $12 bump in their hourly pay
- Queensland meatworks: labour hire workers get 25% pay increases under the same reforms
Meanwhile, superannuation also rose. The Superannuation Guarantee went from 11.5% to 12% on 1 July 2025. Another cost on top of wages.
Target the exact phrases people search: “what is same job same pay Australia,” “same job same pay explained.”
Where Did Same Job, Same Pay Come From?
It’s an offshoot of changes made to Australia’s workplace laws under the Fair Work Legislation Amendment (Closing Loopholes) Act. It’s also an offshoot of questions that needed answering: “Can a company pay different wages for the same job?” “Is it ilegal to pay less for the same job?”
The change in Australia’s workplace rules ran in two stages between late 2023 and early 2024.
How Does Same Job Same Pay Work: The Process
A labour hire worker under the RLHAO (Regulated Labour Hire Arrangement Order) can ask to be paid the same as an employee doing the same job for the host business.
Since SJSP applies specifically to labour hire arrangements, it covers workers supplied by an agency who work inside a host business, on the host’s site, and under the host’s direction.
What Same Job Same Pay Doesn’t Include
It doesn’t automatically apply to every way a business can bring someone in. Not for every type of work arrangement. What falls within its reach?
Where a Fair Work Commission order is made and specific conditions are met. Here are the sectors almost immediately hit:
- Mining
- Aviation
- Warehousing
- Meat processing
- Construction
- Civil contracting (Inside Construction reports a wave of enterprise agreement reviews across major contractors)
Which Businesses Does It Apply To?
Where a business has labour hire workers on site. And that the same workers are doing the same work as staff who are directly employed and covered by an enterprise agreement.
Is Same Job Same Pay the Same as Equal Salary for Equal Work?
No. Equal Pay for Equal Work has been a long-standing anti-discrimination tenet that has to do with gender and workplace equity, and clarifying grey areas in labor-hire policies (that may be used to exploit workers in Australia).
Does Same Job Same Pay Apply to Small Business?
It doesn’t if small operators don’t have an enterprise agreement in place, or don’t use labour hire. They’re outside the direct scope of SJSP.
Granted, higher wages across the industry can still make hiring more expensive.
How Will Same Job Same Pay Change in 2026?
The Closing Loopholes Act is currently in review (by former Fair Work Commission member Susan Booth). For reference, these “loopholes” are as follows:
The first Closing Loopholes Act introduced the Same Job Same Pay policy labour-hire rules.
Second Act dealt with other workplace issues, such as casual employment, the right to disconnect after work, independent contractors, and protections for gig workers.
Will Labor Costs Increase Because of Same Job Same Pay?
Apart from the increases implied by SJSP, throw in superannuation, payroll tax, workers’ compensation, and leave entitlements, and a $90,000 hire will cost somewhere around $112,000 to $121,000 during the first year.
Whatever you see on job or salary ads and websites, and the cost calculated by reality, tells you that that’s a 25% to 35% increase. Most of it stems from three sources:
Not “new” news. It just so happens that a fourth factor as come into play, impacting businesses that are reliant on labour hire.
Another Complication in Labour Hiring
We’ve discussed the rising cost. The other issue SMEs are facing due to SJSP is inflexibility. Rather, an inflexibility between paying enterprise agreement rates for temporary work or restructuring how they staff those roles altogether (The Recruitment, Consulting & Staffing Association).
Illustration: Before a Brisbane construction subcontractor could bring in three labour hire workers for six months, they now need to check whether the workers need to be paid under the enterprise agreement or not. The old labour hire rate’s no longer relevant.
If so, the higher rate has to be factored into the job somehow. The company will have to make the difference, whether that means taking the hit on profit or finding another way to cover the work.
What Roles Are Australian SMEs Moving Offshore?
Businesses are finally answering this question honestly: Does this, or that work need to happen on-site? Within Australia?
Roles tied to physical presence, from direct client contact to on-site coordination, or roles that require hands-on work with machinery and equipment, are definitely, and ought to be, local.
All other tasks, especially those that are platform-dependent and digitally-driven? They’re transferred offshore to specialists who don’t need to be physically present to do their jobs well.
Roles Australian SMEs Are Moving Offshore
- Bookkeeping and financial reconciliation
- Administrative and executive support
- Customer service
- Digital marketing execution (content, creatives, campaign management, ad support)
- Software engineers, graphic designers
- Data entry and back-office processing
Now? AU SMBs are rushing to outsource even roles that require specific skill sets:
- Estimators
- Engineers
- Legal staff
- Project managers
- Supply chain coordinators
- Business Development Managers
As long as they can be done on a computer, they’re being offshored. Confidently and reliably.
These are the functions where output or productivity can be measured regardless of where the person is. Needless to say, they’re often the ones offshored first.
How Remote Staff Helps AU SMEs Manage Rising Hiring Costs
Same Job, Same Pay applies to labour hire arrangements under Australian jurisdiction. This legislation doesn’t apply to offshore staffing, since the latter operates under a different framework entirely.
That doesn’t mean offshore hiring is risk-free by default. That’s why businesses are partnering with Remote Staff. We’ve been supporting Australian businesses through reliable, sustainable staffing. Candidates aren’t only experienced. They’re able to adapt to your operations, like they’re a part of your team.
At the same time, we help you with compliance. That way, you don’t miss anything when outsourcing professionals. Payroll, admin tasks, and onboarding are also on us, for a genuinely seamless outsourcing experience.
We also want to support you on the compliance side of your operations. Here’s a breakdown of Modern Slavery Australia and Payday Super Rules Guide.
FAQs
How much does it cost to hire someone in Australia in 2026?
Base salary is at 70% to 75% of the real cost. Add another 25% to 35% for Superannuation (12%), payroll tax, workers’ compensation, and leave entitlements. To give it a number, a $90,000 base hire actually totals to around $112,000 to $121,000 during the first year.
When does Same Job Same Pay Start? (When did Same Job, Same Pay come into effect?)
The rules became available in December 2023, but the first orders only really took effect on November 1, 2024. Now, former Fair Work Commission member Susan Booth is reviewing the Closing Loopholes laws. Her draft report ia due on 15 May 2026 and the final report is expected by 15 June 2026.
How do I know if Same Job, Same Pay applies to my business?
The rule is aimed at businesses using labour hire workers who are doing the same kind of work as employees covered by the business’s enterprise agreement. Small businesses or any business that don’t have labour hire arrangements are excluded.
Is offshore staffing affected by Same Job, Same Pay?
No. Same Job, Same Pay applies to labour hire arrangements under the Fair Work Act 2009. That means its reach is only over work performed within Australia. Though how the engagement is structured is still important, for other compliance reasons.
Which industries are most affected by the Same Job, Same Pay reforms?
Mining, aviation, warehousing, meat processing, and construction have applied the most pay adjustments so far. Kmart’s Lytton distribution centre raised casual warehouse pay by $8 to $12 an hour. Queensland meatworks recorded 25% pay increases for labour hire staff under the SJSP reforms.
Same Job, Same Pay, Different Conclusion
You have a local team. If you’re working within a budget where hiring doesn’t take the cake, you know bringing in more local professionals isn’t the best decision. But you need to grow. Your workforce needs to grow.
So bypass the legalities of SJSP Australia the legal way: look offshore. Outsource the roles you need, and keep your strategy, finances, and elsewhere in tact. All while still pursuing the goal of growth.
Find your offshore professionals now. Call us or Request a Callback.
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Vaune Everis Cura has always been a writer in the truest sense, drawn to the art both as a personal creative pursuit and as a profession. Her experience penning content across digital marketing spaces and collaborating with business owners and market shapers has broadened her craft to include strategic direction and SEO insight. Having spent years with the InterContinental Hotels Group before stepping boldly into freelancing, she understands that at the centre of it all are genuine, meaningful brand–customer relationships built on purposeful, human content.
