Employer on-costs: Australia vs Singapore

Australia

The universal fixed cost is the 12% superannuation guarantee, now paid every payday under Payday Super. Payroll tax only starts above state thresholds (NSW $1.2M of annual wages, for example), so small employers often pay none. Workers compensation is compulsory everywhere but industry-rated, averaging roughly 1.3% to 1.8% of wages.

• Superannuation guarantee12% (max contribution base A$270,830 a year)
• Payroll tax4.75% to 6.85% by state, above thresholds
• Workers compensationCompulsory, industry-rated (state averages ~1.3-1.8%)

• The super rate has stopped climbing; 12% is the legislated end state.
• From 1 July 2026 contributions must reach the fund within 7 business days of payday.

Source: Australian Taxation Office (12% since 1 Jul 2025; Payday Super from 1 Jul 2026). Checked July 2026.

Singapore

CPF is the big line: 17% employer contribution for employees aged 55 and below, on ordinary wages up to S$8,000 a month (S$102,000 a year all-in). It applies to Singapore Citizens and Permanent Residents only; work pass holders attract no CPF, though a foreign worker levy applies to work permit and S Pass holders. The Skills Development Levy adds 0.25%, capped at S$11.25 a month.

• Employer CPF (55 and under)17%, Citizens/PRs only
• Ordinary wage ceilingS$8,000/month since 1 Jan 2026
• Skills Development Levy0.25%, capped S$11.25/month, all employees
• Work pass holdersNo CPF; foreign worker levy instead

• Senior-band rates step up again on 1 Jan 2027.
• The wage ceiling makes Singapore the only market here where the employer's effective rate drops as pay rises.

Source: CPF Board (Rates from 1 Jan 2026). Checked July 2026.

The maths: Australia

Plus state payroll tax above thresholds (4.75% to 6.85%) and industry-rated workers compensation.

The maths: Singapore

Citizens and PRs only; work pass holders attract a foreign worker levy instead of CPF.