Average cost of hiring a new employee in Australia

Key factors to consider

The average cost of hiring a new employee in Australia can vary widely depending on several factors, including the industry, the level of the position, and the location within Australia. Here are some of the key costs involved.


Posting job advertisements on job boards or using recruitment agencies can incur costs. The price varies based on the platform and the position's level.

If you use a recruitment agency to find candidates, you may need to pay a fee, typically calculated as a percentage of the employee's first-year salary.

Onboarding & training

Costs associated with introducing the new employee to the company, including training materials, equipment, and time spent by trainers.

Salary & benefits

The employee's base salary or wage.

Employers are required to contribute to their employees' superannuation funds in Australia.

Health insurance, paid leave, bonuses, and other perks can add to the overall cost.

Workstation & equipment

The cost of setting up the employee's workstation, including a computer, desk, chair, and other necessary equipment.

Legal & compliance

Costs associated with drafting employment contracts and ensuring compliance with labor laws.

If the new employee is not an Australian citizen, there may be additional costs related to visas and work permits.


Costs associated with the time spent by existing employees on the recruitment and onboarding process.

Costs related to employee turnover, such as lost productivity during the transition period.


Background checks and pre-employment screenings. Drug tests and medical examinations, depending on the industry.

It's essential to note that these costs can vary significantly, and some businesses may have additional costs not listed here. It's advisable to keep up with changes in employment laws and regulations that may affect the cost of hiring new employees.

Average cost of hiring a new employee in Australia

Top Talent

Want to recruit top talent?

Now that you better understand the cost of hiring an employee in Australia, you may be interested in learning more about 11 Recruitment's permanent recruitment services.

11 Recruitment is the leading perm and temp recruitment agency for white-collar staff. We source high achievers for jobs in Perth and throughout Australia.

At 11, we typically get involved in the recruitment process when a client is either seeking a high achiever to elevate their business, recruiting for a role that is hard to fill, or having difficulty sourcing or attracting suitable candidates.

We provide the following recruitment services.

Click the button below to learn more about how 11 Recruitment sources top talent for businesses throughout Australia.

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