Key factors & costs to consider
The cost of hiring an employee in Australia can vary depending on several factors, including the employee's salary, the type of employment contract, and various statutory requirements. Here are some of the key factors and costs to consider when hiring a new employee.
Salary & benefits
Base salary: The primary cost is the employee's salary, which can vary widely depending on the role, industry, and location.
Superannuation: In Australia, employers are generally required to contribute a minimum of 10% of an employee's ordinary time earnings to a superannuation fund.
Leave entitlements: Employees are entitled to paid annual leave, sick leave, and other types of leave as per their employment contract and the National Employment Standards (NES).
Employers may be required to pay payroll tax on their total wage bill if it exceeds a certain threshold. The rate and threshold vary by state and territory.
Workers' compensation insurance
Employers are required to have workers' compensation insurance to cover workplace injuries. The cost depends on the industry and the number of employees.
Costs may be associated with drafting employment contracts and any legal fees related to employment agreements.
Recruitment & onboarding
Expenses related to advertising job positions, conducting interviews, and onboarding new employees.
Training & development
Costs associated with training and development to ensure that employees have the necessary skills and knowledge for their roles.
Costs related to payroll processing, record-keeping, and compliance with employment laws and regulations.
Other costs, such as office space, equipment, and benefits like health insurance, may apply, depending on the specific circumstances.
It's important to note that Australia has a national minimum wage, and there are specific legal requirements that employers must adhere to, such as providing a safe workplace and ensuring compliance with employment laws. Employers should also be aware of Modern Awards and Enterprise Agreements that may set additional conditions for employment in certain industries.
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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.
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