1. What is On-Cost Percentage?

The On-Cost Percentage represents the additional employment costs beyond the base salary, expressed as a percentage of the salary. In Australia, this typically includes superannuation contributions and other employer obligations.

2. How Does the Calculator Work?

The calculator uses the On-Cost formula:

Where:

• \( \text{Employer Costs} \) — Total additional employment costs in AUD
• \( \text{Salary} \) — Base salary amount in AUD

Explanation: This calculation helps employers understand the true cost of employment beyond the base salary, including mandatory contributions like superannuation.

3. Importance of On-Cost Calculation

Details: Understanding on-costs is crucial for accurate budgeting, financial planning, and determining the true cost of employment for businesses and organizations.

4. Using the Calculator

Tips: Enter employer costs and salary amounts in Australian Dollars (AUD). Both values must be positive numbers, with salary greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What are typical Australian on-costs?
A: Common on-costs include superannuation (currently 11%), payroll tax, workers compensation insurance, and other employment-related expenses.

Q2: Why calculate on-cost percentage?
A: It helps businesses understand the true cost of employment, budget accurately, and make informed hiring decisions.

Q3: Is superannuation the only on-cost?
A: No, while superannuation is a major component, other costs may include leave loading, training costs, and administrative expenses.

Q4: How does this affect business planning?
A: Accurate on-cost calculation ensures proper budgeting for staffing costs and prevents underestimation of employment expenses.

Q5: Are on-costs tax deductible?
A: Most employment-related costs, including superannuation contributions, are generally tax deductible for businesses.