CalculationTime

Employee True Cost (Oncost) Calculator — Australia

Calculate the total annual cost of employing someone in Australia including superannuation, leave loading, workers compensation and payroll tax. Shows total oncost percentage above salary.

Live math canvas

Your numbers, formula and explanation together

Employee True Cost (Oncost) Calculator — Australia: $83,433. 19.2% above salary · $13,433 in oncosts · Super $8,050 + leave $938 + PT $3,395 + WC $1,050

Formula applied

The exact method behind this answer

CalculationTime keeps the method visible so the number can be checked instead of blindly trusted.

Superannuation = salary × super rate ÷ 100. Leave loading = salary × 1.34% (17.5% of 4 weeks annual leave). Workers compensation = salary × workers comp rate ÷ 100. Payroll tax = salary × payroll tax rate ÷ 100. Total cost = salary + super + leave loading + workers comp + payroll tax. Oncost % = (total cost ÷ salary − 1) × 100.
  1. Apply the formulaSuperannuation = salary × super rate ÷ 100. Leave loading = salary × 1.34% (17.5% of 4 weeks annual leave). Workers compensation = salary × workers comp rate ÷ 100. Payroll tax = salary × payroll tax rate ÷ 100. Total cost = salary + super + leave loading + workers comp + payroll tax. Oncost % = (total cost ÷ salary − 1) × 100.$83,43319.2% above salary · $13,433 in oncosts · Super $8,050 + leave $938 + PT $3,395 + WC $1,050

Your live breakdown

Current inputs in the calculation

These values come from the controls above and update when the calculator changes.

Annual salary
70,000 AUD
The base salary before super or any oncosts. This is what the employee takes home before tax.
Superannuation rate
11.5 %
11.5% for 2024-25, rising to 12.0% from 1 July 2025. Enter 0 if the salary is quoted as super-inclusive.
Payroll tax rate
4.85 %
Payroll tax only applies above your state threshold (approx. $1.2M in VIC/NSW). Enter 0 if below threshold. VIC: 4.85%, NSW: 5.45%, QLD: 4.75%, WA: 5.5%, SA: 4.95%.
Workers compensation rate
1.5 %
Varies widely by industry and state. Office workers average ~0.5–1%. High-risk trades can be 5–15%+. Use your industry rate from your WorkCover insurer.

Resulting answer

$83,433

19.2% above salary · $13,433 in oncosts · Super $8,050 + leave $938 + PT $3,395 + WC $1,050

Answer
$83,433
Live support
19.2% above salary · $13,433 in oncosts · Super $8,050 + leave $938 + PT $3,395 + WC $1,050

Assumptions used

What this answer assumes

±1–3% depending on industry-specific workers comp rate accuracy. Leave loading of 1.34% is a standard full-year approximation — part-year or casual arrangements will differ.

  • Leave loading is calculated as 17.5% of four weeks' base salary, which equals approximately 1.34% of annual salary.
  • The 11.5% super rate applies for 2024-25. From 1 July 2025, the rate rises to 12.0%.
  • Payroll tax only applies if total wages (across all employees) exceed your state threshold — approximately $1.2M in VIC and NSW. Enter 0% if below threshold.
  • Workers compensation rates vary significantly by industry, claims history and state insurer. This is a planning input — use your actual premium rate.
  • Does not include: training levies, employer-funded parental leave, long service leave accruals, redundancy provisions, recruitment costs, equipment, or salary packaging oncosts.

Master’s Tip

How to use the result well

Master's Tip: when quoting a hire cost to a board or budget committee, always show the salary and each oncost component separately. A bare salary number understates the true cost by 15–30% depending on your industry.

Printable record

What belongs in the saved calculation

Save the inputs, result, formula, assumptions, page URL and date together so the calculation can be reviewed later.

Annual salary
70,000 AUD
The base salary before super or any oncosts. This is what the employee takes home before tax.
Superannuation rate
11.5 %
11.5% for 2024-25, rising to 12.0% from 1 July 2025. Enter 0 if the salary is quoted as super-inclusive.
Payroll tax rate
4.85 %
Payroll tax only applies above your state threshold (approx. $1.2M in VIC/NSW). Enter 0 if below threshold. VIC: 4.85%, NSW: 5.45%, QLD: 4.75%, WA: 5.5%, SA: 4.95%.
Workers compensation rate
1.5 %
Varies widely by industry and state. Office workers average ~0.5–1%. High-risk trades can be 5–15%+. Use your industry rate from your WorkCover insurer.

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Formula

Superannuation = salary × super rate ÷ 100. Leave loading = salary × 1.34% (17.5% of 4 weeks annual leave). Workers compensation = salary × workers comp rate ÷ 100. Payroll tax = salary × payroll tax rate ÷ 100. Total cost = salary + super + leave loading + workers comp + payroll tax. Oncost % = (total cost ÷ salary − 1) × 100.

Worked example

For a $70,000 salary at 11.5% super, 4.85% payroll tax and 1.5% workers comp: super = $8,050; leave loading = $938; payroll tax = $3,395; workers comp = $1,050. Total = $83,433. Oncost = 19.2% above salary.

Professional note

Master's Tip: when quoting a hire cost to a board or budget committee, always show the salary and each oncost component separately. A bare salary number understates the true cost by 15–30% depending on your industry.

Regional and unit assumptions

Australian employment law. Superannuation Guarantee Act 1992. State payroll tax legislation varies. Workers compensation regulated by state WorkCover authorities. This is a planning tool — consult your payroll provider or HR adviser for your specific enterprise agreement and state obligations.

Assumptions and limitations

Trust boundary

What this calculator does NOT do

  • Casual employees — casual loading replaces leave loading and the calculation differs
  • Contractors or consultants — they are responsible for their own super and tax
  • Salary packaging or novated lease arrangements — FBT oncosts are not modelled
  • Exact payroll tax calculations — threshold apportionment and grouping rules may apply

When to stop using this calculator

  • If you are hiring above $100,000 salary — review award coverage, EA obligations and payroll tax grouping with a payroll specialist
  • If you are in a high-risk industry (construction, manufacturing, nursing) — get your workers comp rate from your insurer, not this default

Methodology & Accuracy

How this calculator is checked

CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.

Formula used

Superannuation = salary × super rate ÷ 100. Leave loading = salary × 1.34% (17.5% of 4 weeks annual leave). Workers compensation = salary × workers comp rate ÷ 100. Payroll tax = salary × payroll tax rate ÷ 100. Total cost = salary + super + leave loading + workers comp + payroll tax. Oncost % = (total cost ÷ salary − 1) × 100.

Standard or basis

Australian employment law. Superannuation Guarantee Act 1992. State payroll tax legislation varies. Workers compensation regulated by state WorkCover authorities. This is a planning tool — consult your payroll provider or HR adviser for your specific enterprise agreement and state obligations.

Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.

Master's Tip

Master's Tip: when quoting a hire cost to a board or budget committee, always show the salary and each oncost component separately. A bare salary number understates the true cost by 15–30% depending on your industry.

Questions

What is the current superannuation rate?

11.5% for 2024-25 (paid in addition to salary). The rate rises to 12.0% from 1 July 2025 and stays at 12.0% ongoing.

Does every employer pay payroll tax?

No. Payroll tax only applies if your total Australian wages exceed your state threshold — around $1.2M per year in VIC and NSW. Small and medium businesses below this threshold pay $0 payroll tax.

What is leave loading?

Leave loading is a 17.5% loading on ordinary pay during annual leave, required under many awards. For salaried employees on individual agreements, check whether it applies.

How much does it cost to employ someone in Australia?

A rough guide: base salary plus 15–25% in oncosts for most professional roles below the payroll tax threshold. Roles above the threshold, or in high-risk industries, can cost 25–40% above salary.

Is super included in the salary or on top?

By law, super is paid on top of salary (unless the employment contract states super-inclusive, which is rare). Always confirm the basis before making an offer.