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Country comparison

Australia or Canada: which costs the employer more

Australia costs the employer more: 12.0% on top of the salary, against 6.8% in Canada.

Each country uses its own currency, so we compare the percentage. We publish no exchange rate and convert nothing.

Employer cost on a mid-level salary in each country's own currency. The percentage is what the employer adds to the gross salary.
AustraliaCanada
Salary usedA$120,000C$95,000
Statutory contributionsA$14,400C$6,426
Mandatory extra pay0 months0 months
Total employer costA$134,400C$101,426
Added on top of the salary12.0%6.8%
Statutory paid leave20 days10 days
Public holidays1010
Minimum employer notice1 weeks2 weeks

Where the difference actually comes from

Australia: The Superannuation Guarantee reached 12.00% on 1 July 2025 and is the settled long-term rate. The maximum contribution base for 2026-27 is 270,830 dollars, above which super is not compulsory.

Canada: The employer burden steps down in bands: about 8.23% up to 68,900 dollars, 5.95% from there to 74,600, 4.00% from 74,600 to 85,000, and zero above 85,000.

The formula behind both columns

total employer cost = gross salary + sum over each statutory contribution of rate x max(0, min(salary, ceiling) - band floor) (zero if the contribution applies only below a wage the salary exceeds) + gross salary x (mandatory extra months / 12) + gross salary x mandatory severance accrual rate

Ceilings are the reason this ordering can reverse at a higher salary. Run both countries through the calculator at the salary you actually intend to pay before you treat either number as settled.

Related

Written by Kaz, independent publisher. No commercial relationship with the providers named unless it is listed on the disclosure page.

Page last updated 2026-08-30. Sources: statutory bodies only, listed per figure. Rates last verified 2026-08-21. This is not legal, tax or payroll advice and we do not file anyone's payroll.

Every formula on this site is written out in full on Method. Ordering is by computed cost, never by what a provider pays us.

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