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
<td$39,584.22
| Employer Costs | Year 1 | Year 2 | Year 3 | Year 4 | Total |
|---|---|---|---|---|---|
| % of award | 55% | 65% | 75% | 90% | |
| Base Award Salary | $30,556.24 | $36,111.92 | $41,667.60 | $50,001.12 | $158,336.88 |
| Accredited Training Cost | $4,000.00 | $4,000.00 | $4,000.00 | $4,000.00 | $16,000.00 |
| Supervision | $17,067.05 | $11,378.03 | $8,533.52 | $5,689.02 | $42,667.62 |
| Equipment & PPE | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $4,800.00 |
| Superannuation | $3,666.75 | $4,333.43 | $5,000.11 | $6,000.13 | $19,000.43 |
| Allowances / Overtime | – | – | – | – | – |
| Other Costs | – | – | – | – | – |
| Total Employer Costs | $56,490.04 | $57,023.38 | $60,401.24 | $66,890.27 | $240,804.93 |
| Employer Benefit | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| Apprentice Productivity | 25% | 50% | 75% | 90% | |
| Employer Charge Out Rate | $28,245.02 | $57,023.38 | $90,601.85 | $120,402.49 | $296,272.74 |
| Government Subsidies | $2,500.00 | $2,500.00 | $2,500.00 | $2,500.00 | $10,000.00 |
| Training Cost Subsidies | $2,500.00 | $2,500.00 | $2,500.00 | $2,500.00 | $10,000.00 |
| Total Employer Benefit | $33,245.02 | $62,023.38 | $95,601.85 | $125,402.49 | $316,272.74 |
| Employee (Apprentice) Benefit | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| Salary | $30,556.24 | $36,111.92 | $41,667.60 | $50,001.12 | $158,336.88 |
| Superannuation | $3,666.75 | $4,333.43 | $5,000.11 | $6,000.13 | $19,000.43 |
| Allowances / Overtime | – | – | – | – | – |
| Government Wage Support | $2,500.00 | $2,500.00 | $2,500.00 | $2,500.00 | $10,000.00 |
| Total Employee Benefit | $36,722.99 | $42,945.35 | $49,167.71 | $58,501.25 | $187,337.31 |
| Community Cost | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| Employment Subsidies | $2,500.00 | $2,500.00 | $2,500.00 | $2,500.00 | $10,000.00 |
| Training Subsidies | $2,500.00 | $2,500.00 | $2,500.00 | $2,500.00 | $10,000.00 |
| Individual Wage Support | $2,500.00 | $2,500.00 | $2,500.00 | $2,500.00 | $10,000.00 |
| Total Community Cost | $7,500.00 | $7,500.00 | $7,500.00 | $7,500.00 | $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) | $7,639.06 | $9,027.98 | $10,416.90 | $12,500.28 | $39,584.22 |
| Total Community Benefit | $21,439.06 | $22,827.98 | $24,216.90 | $26,300.28 | $94,784.22 |
Assumptions
| Qualified Worker Salary | $56,890.16 per annum based on:
|
| Apprentice salary | Based on the Building and Construction General On-site Award 2020 rate for a carpentry apprentice – Year 12 completer |
| Apprentice off-the-job training costs | $4,000 per year – total over 4 years $16,000 |
| Apprentice supervision | 30% – 1st year (30% of qualified worker salary costs added to employer costs) 20% – 2nd year (20% 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 | $10,000 over 4 years as individual wage support subsidy directly to apprentice. $10,000 over 4 years as government-supported training costs $10,000 over 4 years as an employer wage support subsidy |
| 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 |