2026 Rate Breakdown

What's included in a labour hire charge rate?

Every component that makes up an Australian labour hire charge rate — and what you'd otherwise pay separately if you hired directly. Transparent, not salesy.

Direct answer

An Australian labour hire charge rate includes: base wages (paid to the worker), 12% superannuation, workers' compensation insurance, state payroll tax (SA 4.95% / NSW 5.45% / QLD 4.75%), annual + personal + long service leave, public liability insurance, and supervision + admin + payroll. On a $33.94/hr base wage for a CW1 labourer, these on-costs add approximately $23/hr, producing a typical ex-GST charge rate of $51–$64/hr for construction in 2026.

The 10 components of a labour hire rate

Approximate share of the charge rate is listed beside each — actual shares vary by sector and classification.

Base wages (paid to the worker)

~55–65% of charge rate

The worker's hourly pay rate as set by the relevant Modern Award for their classification. EIR pays at or above the Modern Award minimum — typical wages across our worker base range from $30/hr (entry production) to $55+/hr (EBA-rated carpenters and electricians).

Superannuation — 12%

~~7% of charge rate

Paid on all ordinary hours as required by Australian law. Super is handled and paid by EIR to the worker's nominated super fund. Clients don't deal with it directly.

Workers' compensation insurance

~3–8% of charge rate

Full coverage for every worker under EIR's policy. Premiums vary by industry: office/admin ~3%, warehousing and logistics ~3–4%, manufacturing ~4–5%, construction and trades ~5–8% of wages. EIR carries the premium — clients have no worker comp exposure.

State payroll tax

~4.75–5.45% of charge rate

Built into the charge rate. SA 4.95%, NSW 5.45% (+ mental health levy surcharge above $10M payroll), QLD 4.75% (+ 0.25% mental health levy above $10M). EIR handles all payroll tax obligations.

Annual leave + 17.5% leave loading

~~8% of charge rate

Four weeks annual leave plus 17.5% leave loading accrued on every hour worked. EIR holds the leave entitlement. Workers are paid leave when they take it — clients aren't invoiced for leave hours.

Personal / sick leave

~~4% of charge rate

Ten days personal/carer's leave accrued per year per full-time equivalent worker. EIR carries the cost.

Long service leave accrual

~~1.5% of charge rate

Approximately 1.67% of base wages accrued for long service leave (varies by state legislation). In construction in SA, NSW and QLD, this is typically managed through portable long service leave schemes (CBUS / LSL schemes) — EIR handles the contributions.

Public liability insurance

~<1% of charge rate

$20M public liability insurance covering all worker placements. Built into the charge rate. Clients receive a Certificate of Currency on request.

Pre-employment checks, inductions, PPE

~~2% of charge rate

Every EIR worker is screened before placement: face-to-face interview, reference checks, ticket verification, medical assessment where applicable. Site-specific inductions and PPE are standard. Cost absorbed into the rate — no recruitment fees, no induction invoices.

Supervision, account management, payroll admin

~~8–12% of charge rate

Dedicated account manager (no rotating contacts), weekly payroll with STP reporting, Award interpretation, performance follow-up, and replacement workers if something isn't working. Real EIR people answer phones from 5:45am — not a voicemail, not a chatbot.

Example — CW1 general labourer in SA, construction

Building up a real 2026 charge rate from a base wage. Construction in Adelaide, midpoint pricing.

ComponentHourly cost
Worker base wage (CW1 general labourer)$33.94/hr
Superannuation (12%)$4.07/hr
Workers' compensation (5% for construction)$1.70/hr
SA payroll tax (4.95%)$1.68/hr
Annual + personal + long service leave accruals$4.80/hr
Public liability, admin, supervision, recruitment$11.15/hr
EIR all-in charge rate (midpoint, ex-GST)$57.34/hr

Figures are indicative midpoints. Final rates vary with crew size, project duration, site allowances, EBA conditions and specific classifications. See the full 2026 labour hire rates guide for classification-level detail.

Frequently asked questions

What is included in a labour hire charge rate in Australia?

An EIR labour hire charge rate is all-in. It includes: base wages at or above the Modern Award, 12% superannuation, workers' compensation insurance, state payroll tax (SA 4.95% / NSW 5.45% / QLD 4.75%), annual leave plus 17.5% leave loading, personal/sick leave, long service leave accrual, $20M public liability insurance, pre-employment checks, inductions, PPE, weekly payroll with STP reporting, Award interpretation, site supervision and account management. One simple hourly rate — no hidden extras.

Why is labour hire more expensive than the worker's hourly wage?

The charge rate looks higher because it covers employment costs that clients would otherwise pay separately. On a base wage of $33.94/hr, the additional on-costs add up to ~$23 — super, workers' comp, payroll tax, leave accruals, insurance, admin and supervision. Clients who engage direct staff pay all these costs too, but through separate channels — super to the ATO, workers' comp to icare or WorkSafe, payroll tax quarterly, leave when staff take it. Labour hire bundles the real cost into one hourly rate.

Do I pay for labour hire workers when they're on leave?

No. Clients only pay for hours actually worked on their site. Leave accruals are funded by the charge rate while the worker is working, and EIR pays workers when they take leave. You're not invoiced for the hours the worker is away.

Is GST included in EIR's labour hire charge rate?

No, all EIR charge rates are quoted ex-GST. GST (10%) is added to the final invoice per Australian tax requirements. GST-registered clients can claim the GST back as a business input credit.

Are overtime and penalty rates included in the charge rate?

Overtime and penalty rates are applied on top of the standard hourly charge rate for the hours actually worked outside ordinary time. Weekday overtime is blended at ~1.75x (1.5x first 2 hours, 2x after). Saturday 1.5x/2x, Sunday 2x flat, public holidays 2.5x. Night shift loadings 15–25%. All handled and invoiced by EIR at the correct Modern Award multiplier.

What if the worker doesn't turn up — do I still pay?

No. Clients only pay for hours actually worked. If an EIR worker doesn't turn up, EIR organises a replacement at no additional cost — we contact workers an hour before shift start and have replacements on standby for most sectors. If a replacement isn't possible on the day, the client isn't charged for the missed shift.

See the full 2026 rate guide

Classification-level rates across 8 sectors in the 2026 labour hire rates guide, or model your own crew with the labour hire cost calculator.

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