Country comparison
Australia or United States: which costs the employer more
Australia costs the employer more: 12.0% on top of the salary, against 7.7% in the US.
Each country uses its own currency, so we compare the percentage. We publish no exchange rate and convert nothing.
| Australia | United States | |
|---|---|---|
| Salary used | A$120,000 | $90,000 |
| Statutory contributions | A$14,400 | $6,927 |
| Mandatory extra pay | 0 months | 0 months |
| Total employer cost | A$134,400 | $96,927 |
| Added on top of the salary | 12.0% | 7.7% |
| Statutory paid leave | 20 days | 0 days |
| Public holidays | 10 | 0 |
| Minimum employer notice | 1 weeks | 0 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.
United States: State unemployment tax (SUTA) is set by each state, not federally. New-employer rates commonly fall between 1.0% and 3.4%, on a taxable wage base that ranges from $7,000 to over $67,000 depending on the state. There is no single national figure.
The formula behind both columns
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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