Payroll software · Australia
Employment Hero vs Xero Payroll: headcount limits and prices
Xero includes payroll in every Australian plan and caps it by the number of people paid: 1 on Ignite ($37 a month), 2 on Grow ($78), 5 on Comprehensive ($107) and 10 on Ultimate 10 ($143), in AUD including GST. Employment Hero sells payroll as its own plan, listed at $10 with a minimum of 10 users and billed on the higher of contracted or active users; the card prints no billing period or GST basis. Both were read on the vendors' own pricing pages on 4 October 2026. A business with fewer than ten staff that already runs Xero has payroll in its subscription today. Employment Hero is built for employers who want award interpretation, HR records and rostering in the same system as pay runs.
Refer Labs may earn a commission if you sign up or buy through the links on this page, including to Employment Hero, at no extra cost to you. Refer Labs earns from Employment Hero and not from Xero. Other payroll software is sold in Australia, and this page covers these two only.
Employment Hero
An HR and payroll platform for employers with ten or more staff.
- Payroll plan lists unlimited pay runs, award interpretation and employee self-service
- Rostering and time and attendance is a paid add-on
- Connects to Xero for the accounting side
No Refer Labs code. Refer Labs earns a commission if you sign up through this link.
Continue to Employment HeroXero Payroll
Payroll that comes inside a Xero accounting subscription.
- Every Australian plan includes payroll for a set number of people
- Staff use the Xero Me app for payslips, leave and timesheets
- Accounting, GST and BAS in the same login
No Refer Labs code. Refer Labs does not earn from Xero; this link opens Xero's own pricing page.
See Xero's plansIs Employment Hero better than Xero Payroll?
Headcount settles most of it. Below ten staff, Employment Hero bills for ten users regardless, while a Xero plan already covers 1, 2 or 5 people depending on the tier you hold. From ten staff up the minimum stops mattering, and the question becomes what the payroll system has to do: Employment Hero lists award interpretation in its Payroll plan and sells rostering as a $4 per employee a month add-on, whereas Xero's payroll page (read 4 October 2026) lists pay runs, super, leave and Single Touch Payroll, and its FAQ sends questions about a specific award obligation to a payroll specialist or the Fair Work Ombudsman.
The two also combine. Employment Hero's own integration page describes running its HR module alongside Xero Payroll, or its Payroll alongside Xero accounting, so moving payroll is not the only way to add HR tooling.
What does each include?
| Read 4 October 2026 | Employment Hero | Xero Payroll |
|---|---|---|
| How payroll is sold | A standalone Payroll plan, or inside Employment Unlimited (quoted by sales) | Included in every Australian accounting plan |
| Published priceread 4 October 2026 | $10, "Conditions apply". No billing period or GST basis printed | Ignite $37, Grow $78, Comprehensive $107, Ultimate 10 $143, Ultimate 20 $180, Ultimate 50 $250, a month, AUD including GST |
| Headcount rule | Minimum 10 users; billed on the higher of contracted or active users | Payroll for 1, 2, 5, 10, 20 or 50 people by plan, with an Ultimate 100 tier also listed; charges may apply above the included number |
| Rosteringread 4 October 2026 | Add-on, $4 per employee/month | Not on the pricing page; staff log timesheets in Xero Me |
| Award interpretation | Listed in the Payroll plan | Not listed as a feature; Xero's payroll FAQ refers award questions to a payroll specialist or the Fair Work Ombudsman |
| Accounting | Not included; integrates with Xero | Included |
Choose Employment Hero if
- You employ ten or more people, so the user minimum is not paying for empty seats.
- Your staff are on modern awards and you want award interpretation in the payroll plan.
- Rostering, onboarding and HR records need to live in the same system as pay runs.
Choose Xero Payroll if
- You already pay for Xero and pay no more people than your plan includes.
- You have fewer than ten staff, where Employment Hero would bill you for ten users.
- One subscription and one login for the books and the pay runs matters more than HR features.
Employment Hero and Xero Payroll: common questions
Does Xero include payroll in Australia?
Yes. Every Australian Xero plan includes payroll, capped by the number of people paid: 1 on Ignite ($37), 2 on Grow ($78), 5 on Comprehensive ($107), 10 on Ultimate 10 ($143), 20 on Ultimate 20 ($180) and 50 on Ultimate 50 ($250), each a month, AUD including GST. Xero's terms say additional charges may apply if you pay more people than the plan includes (xero.com/au/pricing-plans, read 4 October 2026).
What is the minimum for Employment Hero payroll?
Ten users. Employment Hero lists its Payroll plan at $10 with "Conditions apply", and the condition reads: "Your subscription must include a minimum of 10 Users. Billing is based on the higher of the two: the number of Users specified in your customer agreement, or the number of active Users." The card prints no billing period and no GST basis beside the figure (employmenthero.com/pricing, read 4 October 2026).
Is KeyPay the same as Employment Hero?
Yes. KeyPay's own site now opens with "KeyPay is now Employment Hero" (keypay.com.au, read 4 October 2026), so Employment Hero vs KeyPay is one product under two names rather than a choice between two.
Can I use Employment Hero and Xero together?
Yes, in either direction. Employment Hero's Xero integration page says that if you use Employment Hero Payroll you can integrate with Xero for accounting, and if you use Employment Hero HR you can integrate with Xero for payroll (employmenthero.com/integrations/xero, read 4 October 2026). A business can keep Xero Payroll and add Employment Hero's HR side only.
Does Refer Labs earn from Employment Hero or Xero?
Refer Labs earns a commission if you sign up to Employment Hero through the links on this page. It earns nothing from Xero, and the Xero link goes straight to Xero's own pricing page.
Check the plan for your headcount
Both companies change plans and prices; the figures above are dated 4 October 2026. Open whichever fits your team size and confirm the current terms before you switch payroll.
Employment Hero
An HR and payroll platform for employers with ten or more staff.
- Payroll plan lists unlimited pay runs, award interpretation and employee self-service
- Rostering and time and attendance is a paid add-on
- Connects to Xero for the accounting side
No Refer Labs code. Refer Labs earns a commission if you sign up through this link.
Continue to Employment HeroXero Payroll
Payroll that comes inside a Xero accounting subscription.
- Every Australian plan includes payroll for a set number of people
- Staff use the Xero Me app for payslips, leave and timesheets
- Accounting, GST and BAS in the same login
No Refer Labs code. Refer Labs does not earn from Xero; this link opens Xero's own pricing page.
See Xero's plansSources
Each page below is the vendor's own, read on 4 October 2026. Prices are shown in the currency and on the tax basis each vendor prints, and are not converted or added together.
- Xero Australian plans and pricing terms: www.xero.com/au/pricing-plans/, read 4 October 2026
- Xero payroll software page and FAQ: www.xero.com/au/accounting-software/payroll/, read 4 October 2026
- Employment Hero pricing, Payroll tab: employmenthero.com/pricing/, read 4 October 2026
- Employment Hero and Xero integration: employmenthero.com/integrations/xero/, read 4 October 2026
- KeyPay: www.keypay.com.au/, read 4 October 2026
Editor Jarred, FounderLast updated How we compareHow we make money
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