2026-27 financial year
Employee cost calculator: the costs of employing someone in Australia
Wages are the first line. Add the superannuation guarantee, now 12% of qualifying earnings, and a $90,000 salary costs $100,800 a year before payroll tax, workers compensation or a laptop. This true cost of an employee calculator itemises each.
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True cost of an Australian employee, 2026-27
Last updated
Wages plus the 12% superannuation guarantee, the two lines every Australian employer pays regardless of state, industry or size. Payroll tax, workers compensation and equipment sit on top and are set out in the guides below.
Computed with this page's own formulas at a 12% superannuation guarantee, capped at the $270,830 maximum contribution base for 2026-27 (ATO), with payroll tax, workers compensation and other costs set to zero. On-cost is the total divided by wages, less one.
| Gross salary | Superannuation (12%) | Cost with super | On-cost | Cost per month |
|---|---|---|---|---|
| $60,000 | $7,200 | $67,200 | 12% | $5,600 |
| $75,000 | $9,000 | $84,000 | 12% | $7,000 |
| $90,000 | $10,800 | $100,800 | 12% | $8,400 |
| $110,000 | $13,200 | $123,200 | 12% | $10,267 |
| $130,000 | $15,600 | $145,600 | 12% | $12,133 |
| $200,000 | $24,000 | $224,000 | 12% | $18,667 |
| $300,000 | $32,500 | $332,500 | 10.8% | $27,708 |
- Employing someone on $90,000 costs an Australian employer $100,800 a year in wages and superannuation alone in 2026-27, a 12% on-cost before payroll tax, insurance or equipment.
- The superannuation guarantee is 12% for 2026-27 and the ATO's table shows the same 12.00% from 1 July 2027 onwards, so the legislated step-up has finished.
- Superannuation stops accruing above the maximum contribution base, an annual $270,830 for 2026-27, which is why the on-cost falls to 10.8% on a $300,000 salary.
Cite this page
“True cost of an Australian employee, 2026-27”, Employee Cost Australia, https://employeecostaustralia.com/ (updated 2026-10-30). Computed with this page's own formulas at a 12% superannuation guarantee, capped at the $270,830 maximum contribution base for 2026-27 (ATO), with payroll tax, workers compensation and other costs set to zero. On-cost is the total divided by wages, less one.
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The basis
- Superannuation guarantee at 12%. The ATO's published table gives 12.00% for 1 July 2026 to 30 June 2027 and for 1 July 2027 onwards, so the step-up schedule has finished (ATO).
- From 1 July 2026 the guarantee is calculated on qualifying earnings, not ordinary time earnings. Contributions must reach the employee's fund within 7 business days of paying them (ATO, payday super).
- We treat the salary you enter as qualifying earnings; overtime and some allowances may sit outside it.
- Super stops accruing above the maximum contribution base. From 1 July 2026 that is an annual figure, $270,830 for 2026-27, replacing the old quarterly limit (ATO).
- Payroll tax is a state and territory tax with its own threshold and rate in each jurisdiction, so we do not assume one. We apply your rate to wages plus superannuation, because Revenue NSW states that all superannuation contributions are liable for payroll tax (Revenue NSW). Each jurisdiction defines taxable wages in its own Act: confirm yours.
- Workers compensation is compulsory and must be bought from an authorised insurer, with the laws varying in each state and territory (business.gov.au). Premium rates depend on your industry classification and claims history, so the field is yours to fill from your policy.
- Fringe benefits tax is not included. FBT runs from 1 April to 31 March, at 47% for the FBT years ending 31 March 2023 to 31 March 2027. It applies to the grossed-up value of benefits you provide (ATO).
- If you package a car or entertainment, budget for it separately.
- Award wages, penalty rates, allowances and leave loading are not modelled. The National Minimum Wage from 1 July 2026 is $26.44 an hour or $1,004.90 a week. Most employees are covered by an award that pays more (Fair Work Ombudsman).
Employee Cost Australia is an information site. It is not affiliated with the Australian Taxation Office, the Fair Work Ombudsman or any state revenue office, and nothing here is tax, accounting or legal advice. Confirm figures with your accountant or registered tax agent before budgeting or lodging.
Straight answers
How much does an employee on $90,000 cost in Australia?
$100,800 a year in wages and superannuation for 2026-27: $90,000 salary plus $10,800 of superannuation guarantee at 12%. Payroll tax, workers compensation, equipment and any fringe benefits tax sit on top.
How much does it cost to employ someone in Australia?
The salary plus 12% superannuation guarantee for 2026-27, then state payroll tax if your total Australian wages are above your state's threshold, then your workers compensation premium. A $90,000 hire costs $100,800 a year in wages and super alone; enter your own figures in the calculator above for the rest.
How much does a full-time employee cost?
The ABS put average weekly ordinary time earnings for full-time adults at $2,083.70 in May 2026, about $108,350 a year. With 12% super that is about $121,350 a year before payroll tax, workers compensation and equipment. Your own employee's salary is the figure to put in the calculator.
What is the true cost of an employee?
Every line an employer pays, not just the salary: superannuation, payroll tax where it applies, workers compensation, paid leave cover, equipment and software. The statutory lines are itemised in the calculator; the rest are set out in employee on-costs explained.
What percentage should I add to a salary for Australian on-costs?
Start at 12%, which is the superannuation guarantee and applies to every employer. Add your state payroll tax rate only if your total Australian wages are above the threshold, then your workers compensation premium rate from your own policy.
Is the superannuation guarantee still going up?
The ATO's table gives 12.00% for 2026-27 and 12.00% from 1 July 2027 onwards, so no further legislated increase is shown. Check the ATO page before each financial year, because we correct this figure in place when it moves.
Does the calculator include payroll tax by default?
No. Payroll tax is a state tax that only starts above a threshold on your total Australian wages, so a default rate would overstate the cost for most employers. Enter your own rate if you are above your threshold.
Why is workers compensation a blank field?
Because there is no national rate. Workers compensation is compulsory in every state and territory. But the premium depends on your scheme, industry classification and claims history, so the honest answer is the number on your own policy.
Does the on-cost percentage fall on very high salaries?
Yes. Superannuation stops accruing above the maximum contribution base of $270,830 for 2026-27, so a $300,000 salary carries a 10.8% on-cost rather than 12%.
Sources
This site's own datasets, every figure quoted from its source and dated:
- The median published figure in the Earnings Benchmark AU is 1,600 AUD across 13 figures from 3 sources' own pages in AUD (range 448 to 3,223 AUD; 4 sources publish a figure), read 12 October 2026.
- The Minimum Pay and Entitlement Table carries 19 published figures read from 3 sources' own pages, from 1 to 16 week, read 7 November 2026.
- The median published figure in the Payroll Software Cost Index is 10.12 AUD across 6 sources' own pages in AUD (range 5.50 to 15 AUD; 7 sources publish a figure), read 12 October 2026.
- The Payroll Tax Rate Table carries 7 published figures read from 7 sources' own pages, from 0.25 to 5.50 percent, read 7 November 2026.
- The Workers Comp Premium Index carries 3 published figures read from 3 sources' own pages, from 1.34 to 1.85 percent, read 12 October 2026.
- ATO, super guarantee rates and thresholds
- ATO, what payments are qualifying earnings
- ATO, payment deadlines for payday super
- ATO, fringe benefits tax rates and thresholds
- Fair Work Ombudsman, minimum wages
- Revenue NSW, payroll tax thresholds and rates
- Revenue NSW, payroll tax taxable wages
- State Revenue Office Victoria, payroll tax current rates
- Queensland Revenue Office, payroll tax rates and thresholds
- State Revenue Office Tasmania, payroll tax rates and thresholds
- business.gov.au, workers compensation insurance
Budgeting a hire? Start from the real number.
Wages, superannuation, payroll tax and insurance, itemised in ten seconds.
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