Employer cost in Australia at different salaries
| Salary level | Gross salary | Employer SSC | Mandatory non-tax payments | Total employer cost |
|---|---|---|---|---|
| 67% of AW | 72,812 AUD | 6.1% | 11.5% | 85,610 AUD |
| 100% of AW | 108,674 AUD | 6.1% | 11.5% | 127,775 AUD |
| 167% of AW | 181,486 AUD | 6.1% | 11.5% | 213,385 AUD |
Worked example
The OECD average wage in Australia for 2025 is 108,674 AUD (about $78,815 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 6.1%, or 6,604 AUD. On top of social security, employers must also make 11.5% in mandatory non-tax payments (superannuation guarantee), which the OECD reports separately from taxes but which are a real cost of employment. The superannuation guarantee rose to 12% from 1 July 2025, so budget slightly above this 2025 OECD figure for new hires. That brings the statutory total to 127,775 AUD a year (10,648 AUD a month), or 61 AUD per hour at 2,080 hours. In 2024 the rate at the average wage was 6.0%, so it was essentially unchanged. The rate stays at about 6.1% even at 167% of the average wage, so it scales with pay.
Australia ranks #33 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in Australia?
At the OECD average wage of 108,674 AUD, about 127,775 AUD a year including 6.1% employer social security (2025).
What are employer social security contributions in Australia?
About 6.1% of gross pay at the average wage, 6.1% at 67% and 6.1% at 167% of it (OECD model).