Employing an Apprentice? The real costs you should know about…
With school finishing up for another year there are school leavers looking for apprenticeships.
Before you hire an apprentice it is a good idea to analyse what the actual cost of hiring an employee is.
This image shows the total cost employing an apprentice, the example is for an apprentice plumber who has completed Year 12. The award payrate for an apprentice plumber is $14.61 per hour. After taking into account the additional employment expenses such as Superannuation & Workcover the real hourly rate is $16.68.
When the annual leave and trade school hours are taken into account and assuming that the employees are spending 80% of their time on chargeable work the real hourly cost of employing an apprentice is $31.88.
If you are thinking of hiring an apprentice and would like to discuss this please contact the Accounting division at Mulcahy & Co for assistance.
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