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Global hiring costs

Employer cost of hiring in Australia

Quick answer: 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. Australia ranks #33 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).

Prefilled with the Australia average wage. Enter any salary in AUD.

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Where do these numbers come from?

Checked Oct 23, 2026. OECD Taxing Wages 2026 puts Germany’s 2025 average wage at €66,700 with employer social security at 20.86% of gross. €66,700 + 20.86% (€13,917) = €80,617, the total this calculator shows. Our automated tests repeat this comparison against OECD’s published net pay at 100% and 167% of the average wage for all 38 OECD countries.

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Employer cost in Australia at different salaries

Salary levelGross salaryEmployer SSCMandatory non-tax paymentsTotal employer cost
67% of AW72,812 AUD6.1%11.5%85,610 AUD
100% of AW108,674 AUD6.1%11.5%127,775 AUD
167% of AW181,486 AUD6.1%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 2026, 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.

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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).