This employee cost calculator helps Australian businesses estimate the total annual expense of hiring or retaining staff, factoring in mandatory superannuation, insurance, taxes, and other costs.
Enter the base salary in AUD (e.g., 100,000), adjust rates as needed (defaults based on current Australian standards), and get a detailed breakdown.
Use it for budgeting, hiring decisions, or payroll planning.
Estimate the true annual cost of hiring in Australia, including super and more.
This is an estimate; consult ATO or professionals for exact figures. Visit ATO Super for details.
Designed for Australian small and medium enterprises (SMEs), startups, and HR teams, this tool reveals the hidden costs of employment beyond just salary.
Input annual figures in Australian dollars (AUD), tweak rates for your situation, and receive instant results. Ideal for forecasting hiring expenses, compliance checks, or comparing in-house vs. outsourced HR.
Tips for Ongoing Use:
Bookmark this page (Ctrl+D or Cmd+D) for quick access during recruitment or budgeting cycles. Regular use helps SMEs maintain Fair Work and ATO compliance - return whenever you're planning staff changes!
Understanding Employee Cost Basics:
Knowing the full cost of employees is crucial for SMEs to avoid under-budgeting and ensure financial health. In Australia, employers must cover superannuation on top of salary, plus other levies like workers' compensation and potential payroll tax. For a more detailed breakdown, read our article here on employee costs.
Key Components:
1. Superannuation: Mandatory contribution at 12% (as of July 2025) on ordinary time earnings, paid quarterly to the employee's super fund.
2. Workers' Compensation: Insurance premium (average ~1.5%, varies by state/industry) to cover workplace injuries.
3. Payroll Tax: State-based tax (e.g., 5.45% in NSW) on wages above thresholds - enable if applicable to your total payroll.
4. Hidden Costs: Additional expenses like training, benefits, or equipment - customise to your business.
Benefits for SMEs:
Using this calculator improves accuracy in financial planning, highlights cost-saving opportunities (e.g., via retention strategies), and supports compliance with Fair Work Act and ATO rules, reducing risks of penalties and aiding sustainable growth.
ATO and Fair Work Adherence:
This calculator uses the current super guarantee rate of 12% (effective from 1 July 2025). Rates for workers' comp and payroll tax vary - input your specifics. For official guidance, visit the ATO site or Fair Work Ombudsman. Scale Suite also have resources available here.
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