Employer Return on Investment Over 4-year Apprenticeship
Employer Return on Investment Over 4-year Apprenticeship by Quarter
Total Cost vs Benefit Over Duration of Apprenticeship
Cost/Benefit Data
| Employer Costs | Year 1 | Year 2 | Year 3 | Year 4 | Total |
|---|---|---|---|---|---|
| Minimum Weekly Award Rate | $854.72 | $922.70 | $948.00 | $982.40 | |
| Salary | $44,445.44 | $47,980.40 | $49,296.00 | $51,084.80 | $192,806.64 |
| Accredited Training Cost | $2,000.00 | $1,500.00 | $1,000.00 | $1,000.00 | $5,500.00 |
| Supervision | $19,444.88 | $13,889.20 | $8,333.52 | $5,555.68 | $47,223.28 |
| Equipment & PPE | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $4,800.00 |
| Superannuation | $5,333.45 | $5,757.65 | $5,915.52 | $6,130.18 | $23,136.80 |
| Allowances / Overtime | – | – | – | – | – |
| Total Employer Costs | $72,423.77 | $70,327.25 | $65,745.04 | $64,970.66 | $273,466.72 |
| Employer Benefit | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| Apprentice Productivity | 25% | 50% | 75% | 90% | |
| Employer Charge Out Rate | $36,211.89 | $70,327.25 | $98,617.56 | $116,947.18 | $322,103.88 |
| Government Subsidies | $5,000.00 | $2,000.00 | $2,000.00 | $5,000.00 | $14,000.00 |
| Training Cost Subsidies | $4,000.00 | $4,000.00 | $4,000.00 | $4,000.00 | $16,000.00 |
| Total Employer Benefit | $45,211.89 | $76,327.25 | $104,617.56 | $125,947.18 | $352,103.88 |
| Employee (Apprentice) Benefit | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| Salary | $44,445.44 | $47,980.40 | $$49,296.00 | $51,084.80 | $192,806.64 |
| Superannuation | $5,333.45 | $5,757.65 | $5,915.52 | $6,130.18 | $23,136.80 |
| Allowances / Overtime | – | – | – | – | – |
| Total Employee Benefit | $49,778.89 | $53,738.05 | $55,211.52 | $57,214.98 | $215,943.44 |
| Community Cost | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| Employment Subsidies | $5,000.00 | $2,000.00 | $2,000.00 | $5,000.00 | $14,000.00 |
| Training Subsidies | $4,000.00 | $4,000.00 | $4,000.00 | $4,000.00 | $16,000.00 |
| Total Community Cost | $9,000.00 | $6,000.00 | $6,000.00 | $9,000.00 | $30,000.00 |
| Community Benefit | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| No Welfare/Unemployment Benefits | $13,800.00 | $13,800.00 | $13,800.00 | $13,800.00 | $55,200.00 |
| Taxes (25% of wages) | $11,111.36 | $11,995.10 | $12,324.00 | $12,771.20 | $48,201.66 |
| Total Community Benefit | $24,911.36 | $25,795.10 | $26,124.00 | $26,571.20 | $103,401.66 |
Assumptions
| Qualified Worker Salary | $55,556.80 per annum based on:
|
| Apprentice salary | Based on the Vehicle Repair, Services and Retail Award rate for an automotive apprentice – Year 12 completer, over 21-years-old |
| Apprentice off-the-job training costs | $5,500 over 4 years |
| Apprentice supervision | 35% – 1st year (35% of qualified worker salary costs added to employer costs) 25% – 2nd year (25% of qualified worker salary costs) 15% – 3rd year (15% of qualified worker salary costs) 10% – 4th year (10% of qualified worker salary costs) |
| Apprentice protective equipment | $1,200 per year – total $4,800 over 4 years |
| Apprentice productivity | 25% – 1st year (25% of salary costs × 200% charge-out rate) 50% – 2nd year (50% of salary costs × 200%) 75% – 3rd year (75% of salary costs × 200%) 90% – 4th year (90% of salary costs × 200%) |
| Government financial supports | $14,000 over 4 years as a wage support subsidy $16,000 over 4 years as government-supported training costs |
| Community benefit | Includes the cost of unemployment support if not employed – this is saved when in an apprenticeship, as well as the income tax the apprentice pays against their income – calculated at 25% of wages |
| Items not included | Any work-related travel/accommodation costs or the benefits/costs associated with post-completion (or non-completion) of the apprenticeship |