Employee cost calculator

See the full annual cost of an employee in Australia: salary, super, leave loading, payroll tax, workers compensation and other costs.

What you enter

  • Base salary per year – Annual base pay before tax, excluding super.
  • Superannuation guarantee rate – The super guarantee is 12% from 1 July 2025. Check the current rate with the ATO.
  • Payroll tax rate – State and territory tax, only payable once your total Australian wages pass the threshold. Rates differ by state; check with your state revenue office.
  • Workers compensation premium – Varies by state, industry and claims history. Check your insurer’s current rate.
  • Annual leave loading – Many awards and agreements set 17.5% on annual leave pay. Use 0 if it does not apply; check the award with Fair Work.
  • Annual leave per year – Full-time employees get at least 4 weeks under the National Employment Standards.
  • Other annual costs – Laptop, phone, software licences, training, uniforms, recruitment fees spread over a year.
  • Ordinary hours per week – Full-time is 38 hours a week under the National Employment Standards.
  • Weeks actually worked per year – 52 weeks less annual leave, public holidays and an allowance for personal leave. 44 is a common estimate.

How it is calculated

Super = Salary × Super rate. Leave loading = Salary ÷ 52 × Leave weeks × Loading %. Payroll tax = (Salary + Super + Leave loading) × Payroll tax rate. Workers compensation = (Salary + Leave loading) × Premium rate. Total = Salary + Super + Leave loading + Payroll tax + Workers compensation + Other costs. Cost per productive hour = Total ÷ (Hours per week × Weeks worked).

Assumptions

  • Super is calculated on base salary (ordinary time earnings) only, with no maximum contribution base applied.
  • Payroll tax is applied to salary, super and leave loading, as most states treat super as taxable wages, and the business is already above its threshold.
  • Workers compensation is applied to wages including leave loading.
  • Rates are editable because they change: confirm super with the ATO, payroll tax with your state revenue office, workers compensation with your insurer, and award terms with Fair Work.

Limitations

  • Does not include overtime, penalty rates, allowances, bonuses, long service leave provisions or fringe benefits tax.
  • Casual employees are paid a casual loading instead of leave entitlements; this calculator is designed for permanent staff.
  • This is an estimate for planning, not payroll or tax advice.

Related articles

  • Payroll and workforce management – Paying people correctly and on time is a legal duty and a trust issue. How Australian payroll works end to end: awards, timesheets, Single Touch Payroll, superannuation, leave, rostering and the systems that keep it accurate as the team grows.
  • Hiring and recruitment – How to work out what role you actually need, write an ad that attracts the right people, run a fair and fast selection process, and make an offer that sticks: a practical hiring guide for small Australian businesses.
  • Employment fundamentals – The Australian employment basics every employer must understand: the Fair Work system, National Employment Standards, modern awards, employment types, contracts, record-keeping and the difference between an employee and a contractor.