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Employee True Cost Calculator
See the true cost of your employees or new hires in seconds.
Get a clear breakdown including super, casual loading, and paid leave — instantly.
Why businesses love this calculator:
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Simple, fast, and free
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Built for Australian employers
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Helps you budget, plan, and stay compliant
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No sign-up required
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Trusted by HR, finance, and payroll teams nationwide
The Costs Businesses Don't See
Budgets built on incomplete numbers
Planning for the wage but not the true cost quietly erodes your margins every month.
Hiring decisions made blind
You think you can afford the role but super, leave, and loading haven't been factored in.
Payroll tax surprises
Growing businesses cross state thresholds without realising until the bill arrives.
Pricing that doesn't cover labour
If your true labour cost isn't in your pricing, your margins are smaller than you think.
Stop Guessing. Start Knowing.
Workforce costs shouldn't be a mystery. Use our free tools to get instant clarity, then switch to Definitiv Evo to streamline your entire payroll and workforce management process.
Frequently asked questions
How much does an employee really cost in Australia?
More than the base wage. Once you factor in mandatory obligations, the true cost runs well above the hourly rate alone. Here's what every Australian employer must pay:
- Superannuation — 12% of ordinary time earnings (ATO, FY2025–26)
- Annual leave — 4 weeks ordinary pay for all permanent employees (Fair Work Act s.87)
- Personal / carer's leave — 10 days per year for all permanent employees (Fair Work Act s.96)
- Workers' compensation — ~1.75% employer-funded insurance, mandatory in every state and territory
- Payroll tax — state-based tax on wages above each state's annual threshold
What's the difference between casual and permanent employment costs?
The employment type you choose has a direct impact on your total cost. Under the National Employment Standards (NES), entitlements differ significantly:
- Casual — 25% loading on base rate in lieu of leave entitlements. No annual leave, no personal leave, no guaranteed hours.
- Part-time — full NES leave entitlements on a pro-rata basis. Regular agreed hours each week.
- Full-time — full NES entitlements. Standard 38 ordinary hours per week.
Use the calculator above to compare the true cost of each employment type before you commit.
Does this calculator include payroll tax?
Yes. Select your state under Advanced Settings and the calculator applies the correct rate and threshold automatically. If your total wages fall below your state's threshold, payroll tax returns $0. Thresholds range from $1,000,000 in Victoria and Western Australia to $2,500,000 in the Northern Territory. For the latest rates, check your relevant state revenue office:
I'm managing a growing team — is a calculator enough?
For a quick estimate, yes. But as your workforce grows across sites, shifts, awards, and employment types, a one-off calculation can't keep up with every change. Definitiv Evo gives you real-time labour cost visibility across your entire business — with award interpretation and compliance built in. When Fair Work updates a Modern Award, your system updates automatically. No manual checking, no surprises.
How accurate are these results? What should I do next?
All rates reflect verified FY2025–26 obligations sourced directly from the ATO and Fair Work Ombudsman. Results are indicative estimates — actual costs will vary based on your specific Modern Award, Enterprise Agreement, and workforce structure.
For ongoing accuracy built into every pay run, explore Definitiv Evo — built specifically for Australian businesses managing complex payroll.