Question 1

What is the total employer cost to hire in Australia?

Accepted Answer

For a reference gross salary of 110,000 AUD, the total employer cost is approximately 129,085 AUD per year — an effective burden of 17.35% on top of gross salary. This includes all mandatory employer-side contributions listed in the breakdown above.

Question 2

What is the cost of employment in Australia?

Accepted Answer

The true cost of employment in Australia is 17.35% higher than the gross salary paid to the employee. For a 110,000 AUD position, total employment cost reaches approximately 129,085 AUD per year once all mandatory employer contributions are included. These costs are set by law and cannot be reduced or deferred.

Question 3

What are the mandatory employment costs in Australia?

Accepted Answer

Mandatory employment costs in Australia — the statutory contributions every employer must pay — total 17.35% of gross salary. This covers Superannuation Guarantee (11.5%), Payroll Tax (state avg.) (4.85%), Workers' Compensation (est.) (1%). All apply to every employed worker regardless of contract type; there is no opt-out.

Question 4

Does the employer burden in Australia change at higher salary levels?

Accepted Answer

Most contributions are percentage-based, so absolute cost scales with salary. Some countries cap contributions once salary exceeds a ceiling — use the calculator on this page to model any gross salary accurately.

Question 5

Should I hire in Australia directly or via an Employer of Record (EOR)?

Accepted Answer

Statutory employer contributions are identical either way — 17.35% on top of gross salary. An EOR adds a service fee (typically 5–15% of salary or a flat monthly rate) but removes entity registration, local payroll administration, and compliance risk. EOR tends to be more cost-effective for exploratory or short-term hires; a local entity is usually lower total cost for large-scale, permanent headcount.

Question 6

How do employer costs in Australia compare globally?

Accepted Answer

At 17.35%, Australia sits at the mid range. European countries typically range 15–35%, North American jurisdictions 9–15%, and select Asian markets below 20%. Use the country pages on this site to compare figures side by side.

Employer contribution	Rate	Amount / yr	Source
Gross salary	—	A$110,000	—
Superannuation Guarantee	11.50%	A$12,650	OECD Taxing Wages
Payroll Tax (state avg.)	4.85%	A$5,335	OECD Taxing Wages
Workers' Compensation (est.)	1.00%	A$1,100	OECD Taxing Wages
Total employer contributions	17.35%	A$19,085	—
Total cost to employer	—	A$129,085	—

Employer costs in Australia

Why this matters

Cost breakdown

Sources

Frequently asked questions

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