Australia Employee Cost Calculator
See the true cost of employing someone in Australia — gross salary plus an estimated 12.0% in employer social contributions.
Cost of an employee in Australia
Employer contribution breakdown
| Contribution | Rate | Annual amount |
|---|---|---|
| Superannuation guarantee | 12.00% | — |
| Total employer contributions | 12.0% | — |
Employer costs in Australia
In Australia, the main statutory employer cost is the Superannuation Guarantee — 12% of ordinary earnings from 1 July 2025, paid into the employee's retirement fund on top of salary.
- Superannuation guarantee is 12% of ordinary time earnings (rose to 12% on 1 July 2025).
- State payroll tax (roughly 4.75–6.85%) applies only to employers above a state wage threshold (commonly ~A$1M+), so most small employers are exempt.
- Workers' compensation insurance is mandatory and varies by state and industry (~1–2%).
This shows the superannuation guarantee that applies to all employers. Large employers also pay state payroll tax above the threshold, and workers' comp premiums vary by industry — add those for a full cost picture.
Hire and pay in Australia
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Frequently asked questions
On top of gross salary, an employer pays statutory social-security contributions — around 12.0% in Australia. The total employer cost is the gross salary plus those employer contributions. It does not include optional benefits, equipment, or recruitment costs.
Employers must pay mandatory social-security and payroll charges on top of the gross salary the employee sees. These fund pensions, healthcare, unemployment, and similar schemes, and they are a real, recurring cost of employment.
In most countries several contributions are calculated only up to a maximum income base, so the effective employer rate is lower for high salaries. Treat this calculator as a budgeting estimate rather than exact payroll.
Many companies use an Employer of Record (EOR) to hire compliantly in Australia without opening a local subsidiary. The EOR is the legal employer and handles payroll, contributions, and compliance for a monthly fee.