The Cost of Hiring a Full-Time Employee in Australia

1. Introduction

Australia is a highly regulated employment market with robust worker protections and mandatory contributions. Understanding the complete cost structure—beyond just salary—is critical to hiring talent compliantly and competitively. This guide outlines the total cost of employing a full-time worker in Australia.

2. Average Gross Monthly Salaries

Salary levels vary based on role, experience, and location:

• Administrative roles: AUD 4,000 – 5,500/month
• Skilled professionals: AUD 6,000 – 9,000/month
• Technology/Engineering: AUD 8,000 – 12,000/month
• Executives: AUD 15,000 – 25,000/month

Australia uses industry-specific awards and enterprise agreements to set minimum wages above the national minimum wage. Employers must check applicable awards when budgeting salary ranges.

3. Statutory Contributions and Employer Taxes

Employers must contribute 11% of an employee’s ordinary time earnings (OTE) to a superannuation fund (as of 2025). Other obligations include:

• Payroll tax: State-based, applies if wage bills exceed local thresholds
• PAYG withholding: Deducting and remitting employee income tax to the ATO

All payments must be reported through the Single Touch Payroll (STP) system.

4. Other Mandatory Costs

• Annual Leave: 20 days of paid leave per year
• Public Holidays: 7–13 days depending on state
• Personal/Carer’s Leave: 10 days/year
• Long Service Leave: Accrued after 7–10 years of service
• Parental Leave: Up to 18 weeks paid by the government; employers may top up voluntarily

5. Optional & Market-Driven Benefits

To attract high-caliber talent, employers commonly offer:

• Private health insurance or wellness stipends
• Salary packaging for tax benefits
• Bonuses or incentive plans
• Additional leave days or RDOs (rostered days off)

These go beyond award requirements but help improve retention.

6. Hidden & Overlooked Costs

• Recruitment: Job ads, agency commissions
• Equipment: Laptops, phones, software access
• Training: Required under WHS laws for safety-sensitive roles
• Leave Payouts: Accrued annual leave and long service leave must be paid out on termination
• Fines: For misreporting superannuation or STP errors

7. Advisory Notes for Employers

Ensure that all employment contracts reflect applicable modern awards. Payroll accuracy is critical—late super contributions or incorrect leave tracking can result in penalties. It’s also essential to stay updated on Fair Work Commission wage reviews each July.

8. How AYP Helps You Manage Cost Efficiently

AYP supports your hiring strategy in Australia by managing all employer obligations—from superannuation to payroll tax filing. We help reduce your risk exposure and ensure full compliance with Fair Work standards.

9. Contact Us

Need help managing hiring costs in Australia? Contact AYP today to ensure full compliance and efficiency.