Free calculator
Employee cost calculator: a local hire vs an offshore hire
An offshore hire costs the monthly salary, the country's employer costs and our fee. An experienced Philippines virtual assistant on A$1,550 a month costs about A$2,680 a month on Managed for You. A local hire on A$70,000 costs about A$79,100 a year once you add 12% super and workers comp.
How the calculator works
Every figure comes from our published salary guide and fees, or from the Australian rules shown below. Change any input and the estimate updates straight away.
The offshore hire
- Salary. Junior uses the bottom of the role's range, Experienced the middle and Senior the top. Ranges come from each role page. We recruit at the experienced end of each market.
- Country employer costs. In the Philippines we add 13th-month pay, one extra month of salary a year. In Sri Lanka we add 15% for the employer's EPF (12%) and ETF (3%) contributions.
- Our fee. Managed for You is $1,000 a month per team member on a 12-month commitment. Ready for You is $5,999 + GST once, then $0 a month if you employ them or $350 a month if we employ them for you. See what each plan includes.
The local hire
- Super. 12% of salary, the super guarantee rate since 1 July 2025 (ATO).
- Workers compensation. Set to 1% as a starting point for office roles. Use your own premium rate if you know it.
- Payroll tax. Set to 0%, because most small businesses sit under their state's threshold. In NSW it is 5.45% on wages above A$1.2 million (Revenue NSW).
- Desk and software. Add a monthly amount for office space, equipment and licences if you want them counted.
A worked example
An accounting firm wants a bookkeeper. Locally it would pay A$70,000 a year, plus A$8,400 super and about A$700 workers comp: A$79,100. An experienced bookkeeper in the Philippines on A$1,750 a month, plus 13th-month pay, costs A$22,750 a year in salary. Add Managed for You at A$12,000, and the first year comes to A$34,750, about 56% less. On Ready for You, with the firm employing the bookkeeper directly, the first year is A$28,749 (A$22,750 + A$5,999 + GST) and later years are just the salary.
Common questions
How much does an offshore employee cost per month?
Add three things: the monthly salary, the country's employer costs and our fee. For example, an experienced Philippines virtual assistant on A$1,550 a month costs about A$2,680 a month on Managed for You. Salaries run from about A$700 a month in Sri Lanka and A$1,300 in the Philippines, and more for skilled roles.
Do I pay super for offshore staff?
Generally no. The ATO says you don't have to pay super for non-resident employees who work outside Australia. You do budget for the country's own employer costs: 13th-month pay in the Philippines, and EPF and ETF contributions in Sri Lanka. Read our guide to super and 13th-month pay.
Why does a local employee cost more than their salary?
On top of salary you pay 12% super, workers compensation insurance and, once your total Australian wages pass your state's threshold, payroll tax. Most businesses also pay for a desk, equipment, software and recruitment. Add these in the calculator to see the full figure.
Is Sri Lanka or the Philippines cheaper?
Salaries are usually lower in Sri Lanka, and our fees are the same in both countries. The right choice depends on the role and your hours. The Philippines suits phone and live customer work with near-full overlap with AEST. Sri Lanka suits accounting depth and document-heavy work. Switch the country in the calculator to compare them.
Are the fees shown before GST?
Yes. The Ready for You recruitment fee is $5,999 + GST, and Managed for You is $1,000 a month + GST. Every quote we send confirms GST for each line.
How accurate is this calculator?
It gives a planning estimate from our salary guide and published fees. It does not include Philippine government contributions (SSS, PhilHealth and Pag-IBIG), IT and equipment, or multi-hire savings. In a free consultation we price your exact role, including these costs.
Want the exact cost for your role?
Tell us the role, the hours and the tools in a free consultation. We'll confirm the salary range, the country that suits it and your total monthly cost.