The salary you offer is just the starting point. On top of every dollar of base salary, Australian employers must pay superannuation (12% from July 2025), workers compensation insurance, and provision for various leave entitlements. Depending on your state and total wage bill, payroll tax may also apply.

For most industries, the true cost of a permanent employee is 25–35% above their base salary. A common rule of thumb is to multiply the salary by 1.3 for a quick estimate, though the actual figure depends heavily on your state, industry risk profile, and whether your total wages exceed the payroll tax threshold.

Looking at this from the employee's perspective? See what they actually take home with our Take-Home Pay Calculator.