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Income, Tax and Work

Total Employment Cost Calculator

Calculate the true total cost of employing someone in Australia by adding superannuation, payroll tax and other on-costs to base salary.

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Your results

Total annual employment cost$107,705
Superannuation$10,800
Payroll tax$4,905
Other on-costs$2,000

Calculation breakdown

Total cost
Total cost = base salary + superannuation + payroll tax + other on-costs

Worked example

A $90,000 base salary with 12% super, an estimated 5.45% payroll tax and $2,000 of other on-costs comes to a total employment cost of about $105,805.

Assumptions

  • Payroll tax varies by state and only applies above a threshold; confirm your business's liability.
  • Excludes one-off recruitment or training costs.

How this calculator works

Enter an employee's base salary along with the superannuation guarantee rate, an estimated payroll tax rate and other on-costs such as insurance or leave loading to calculate the total annual cost of employing them. This helps with budgeting and quoting for a new role.

Frequently asked questions

Is payroll tax the same in every state?

No, payroll tax rates and thresholds vary by state and territory, so enter the rate that applies to your business and check whether you are even above the threshold.

Should I include workers' compensation insurance?

Yes, add an estimate for workers' compensation insurance and any other statutory on-costs in the other on-costs field.

Does this include recruitment or training costs?

No, this covers ongoing payroll on-costs only, not one-off recruitment or training expenses.

Actual entitlements can depend on your award, enterprise agreement, contract, employment status and individual circumstances.

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