What a full-time employee really costs
The wage. From 1 July 2026 the National Minimum Wage is $26.44 an hour, or $1,004.90 a week, for employees not covered by an award. Most employees are covered by an award, which usually sets a higher rate for their job. Fair Work’s minimum wages page links its pay tools.
Super, every payday. The super guarantee is 12% for 2026-27. From 1 July 2026, under Payday Super, you pay it for each payday rather than each quarter, so it leaves your account as often as the wage does.
Paid time off. Full-time and part-time employees get 4 weeks of annual leave a year, and full-time employees get 10 days of paid sick and carer’s leave. You pay for those weeks without the work, so a full-time employee is on the job for at most 46 weeks of the 52, fewer once public holidays are taken out.
Insurance and state tax. Employers must have workers compensation insurance for their workers, and its cost depends on your state, insurer and industry. Payroll tax only applies once your total wages pass your state’s threshold; your state revenue office has the number.
Everything else. Tools, uniform, a phone, a vehicle, training, and your own time getting them up to speed.
A worked example
| One full-time hire, a year | Amount |
|---|---|
| Salary | $70,000 |
| Super at 12% | $8,400 |
| Workers compensation (assumed 2% for this example) | $1,400 |
| Tools, uniform and phone (assumed) | $2,000 |
| Total cost | $81,800 |
| Per working week, after leave | $81,800 ÷ 46 = about $1,778 |
| Cash out every month, wage and super alone | about $6,533 |
How much extra you need to sell
A hire pays for itself when the extra gross profit it brings in covers its cost. Divide the total cost by your gross margin (your sales minus cost of sales, as a share of sales) to get the extra sales you need.
| Your gross margin | Extra sales a year to cover $81,800 | A month |
|---|---|---|
| 40% | $204,500 | about $17,042 |
| 60% | about $136,333 | about $11,361 |
Not sure of your margin? The cost of sales guide shows how to work it out, and what the ATO says is normal for your industry.
The cash test, not just the profit test
A hire can be profitable over a year and still leave you short in the first few months. Wages and super go out every payday from the first week; if your customers pay on 30 days, the extra revenue lands a month or more later. Before you commit, look at your cash month by month with the new wage in it, and keep a buffer for the gap.
Apprentices and casuals
Apprentice and casual pay rates are set by the award that covers the job, and differ by year of the apprenticeship and by industry. Fair Work’s minimum wages page links the apprentice, junior and award rates, and the same cost and cash tests above apply.