Wages & on-costs

What does an hour of labour really cost you?

You think you pay someone $30 an hour. Once super, leave, leave loading and on-costs are spread across the hours they actually work, it's usually $40–45. That loaded number is what every service price has to cover — get it wrong and you underprice everything.

Base hourly wage

Award or agreed gross rate before on-costs (AU hairdressing: Award MA000005).

Employment type

Casuals get a 25% loading instead of paid leave — enter the loaded rate.

Super guarantee %

12% from 1 Jul 2025.

Annual leave loading %

Permanent staff only; applied to annual leave.

Paid leave days / year

20 annual + 10 personal (NES) for permanents; 0 for casual.

Public holidays / year (paid, not worked)

Set per your state.

Workers comp premium %

On wages; varies by state/insurer.

Include payroll tax?

Only if total annual wages exceed your state threshold (~$1m+).

Payroll tax %

Your state rate, if above the threshold.

True cost of a rostered hour

$40.97/hr

You pay a base of $30.00/hr. Loaded with super, leave and on-costs — and spread over the hours actually worked — every hour really costs $40.97. That's 36.6% (1.37×) on top, and about $68,188 a year for this one person.

On-cost loading

36.6%

on top of base wage

Cost multiplier

1.37×

1.30–1.45× is typical

All-in annual cost

$68,188

this one staff member

What makes up each hour

Base wage (incl. paid leave/holidays)$35.62

Superannuation$4.27

Workers comp$0.60

Payroll tax$0.00

Leave loading$0.48

True hourly cost spreads all paid-not-worked time and on-costs across the hours actually worked, so the rate reflects what a productive hour really costs. Award and tax figures change each 1 July — verify at fairwork.gov.au.

A working tool, not financial advice. It uses the figures and assumptions you enter — check them against your own numbers and your accountant before any pricing, wage or financial decision. Award and tax figures change (often each 1 July); verify current rates at fairwork.gov.au and ato.gov.au. Shear Profit gives no tax or financial advice.

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