Employer Return on Investment Over 2-year Traineeship
Employer Return on Investment Over 2-year Traineeship by Quarter
Total Cost vs Benefit Over Duration of Traineeeship
Cost/Benefit Data
| Employer Costs | Year 1 | Year 2 | Total |
|---|---|---|---|
| Salary | $28,106.00 | $32,708.00 | $60,814.00 |
| Accredited Training Cost | $2,000.00 | $1,500.00 | $3,500.00 |
| Supervision | $15,406.30 | $9,243.78 | $24,650.08 |
| Equipment & PPE | $1,300.00 | $1,300.00 | $2,600.00 |
| Superannuation | $3,372.72 | $3,924.96 | $7,297.68 |
| Allowances / Overtime | – | – | – |
| Total Employer Costs | $50,185.02 | $48,676.74 | $98,861.76 |
| Employer Benefit | Year 1 | Year 2 | Total |
| Apprentice Productivity | 30% | 70% | |
| Employer Charge Out Rate | $30,111.01 | $70,259.03 | $$100,370.04 |
| Government Subsidies | – | – | – |
| Training Cost Subsidies | – | – | – |
| Total Employer Benefit | $30,111.01 | $70,259.03 | $100,370.04 |
| Employee (Trainee) Benefit | Year 1 | Year 2 | Total |
| Salary | $28,106.00 | $32,708.00 | $60,814.00 |
| Superannuation | $3,372.72 | $7,452.53 | $14,905.06 |
| Allowances / Overtime | – | – | – |
| Total Employee (Trainee) Benefit | $69,556.93 | $3,924.96 | $7,297.68 |
| Community Cost | Year 1 | Year 2 | Total |
| Government Employment Subsidies | – | – | – |
| Government Training Subsidies | – | – | – |
| Total Community Cost | – | – | – |
| Community Benefit | Year 1 | Year 2 | Total |
| No Welfare/Unemployment Benefits | $13,800.00 | $13,800.00 | $27,600.00 |
| Taxes (25% of wages) | $7,026.50 | $8,177.00 | $15,203.50 |
| Total Community Benefit | $20,826.50 | $21,977.00 | $42,803.50 |
Assumptions
| Qualified Worker Salary | $61,625.20 per annum based on:
|
| Trainee salary | Based on the National Training Wage defined in the Miscellaneous Award 2020 for Year 12 completer |
| Trainee off-the-job training costs | $3,500 total over 2 years |
| Trainee supervision | 25% – 1st year (25% of qualified worker salary costs added to employer costs) 15% – 2nd year (15% of qualified worker salary costs) |
| Trainee equipment | $1,300 per year – total $2,600 over 2 years |
| Trainee productivity | 25% – 1st year (25% of salary costs × 200% charge-out rate) 50% – 2nd year (50% of salary costs × 200%) |
| Government financial supports | $0 – No government supports over the 2 years |
| Community benefit | Includes the cost of unemployment support if not employed – this is saved when in a traineeship, as well as the income tax the trainee 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 traineeship |