Employer Costs in Australia
Australia employer payroll taxes add 17.35% to gross salary. Region: Oceania · Currency: AUD.
Why this matters
Gross salary is not the total cost of employment in Australia. Employers must pay an additional 17.4% in mandatory statutory contributions on top of every employee's gross salary. On a 110,000 AUD hire, that brings the true annual employer cost to approximately 129,085 AUD.
The largest employer-side levies are Superannuation Guarantee (11.5%) and Payroll Tax (state avg.) (4.85%). These are set by law and apply to all employers — there is no mechanism to reduce or defer them.
Misquoting total employment cost is one of the most common causes of international hiring budget overruns. Whether you hire directly or through an Employer of Record, the statutory contributions above apply equally. Every figure on this page is sourced from official government or intergovernmental datasets so your financial models use auditable numbers.
Cost breakdown
Example based on a reference Software Engineer salary of 110,000 AUD.
| 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 | — |
Cost to hire a software engineer in Australia
Employer cost calculator — Australia
Frequently asked questions
What is the total employer cost to hire in Australia?
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.
What payroll taxes does an employer pay in Australia?
Employer-side statutory obligations in Australia include: Superannuation Guarantee (11.5%), Payroll Tax (state avg.) (4.85%), Workers' Compensation (est.) (1%). All apply to every employed worker; there is no opt-out.
Does the employer burden in Australia change at higher salary levels?
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.
Should I hire in Australia directly or via an Employer of Record (EOR)?
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.
How do employer costs in Australia compare globally?
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.