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 |
|---|---|---|---|---|---|
| Base Award Salary | $58,616.06 | $64,781.18 | $64,781.18 | $64,781.18 | $252,959.62 |
| Accredited Training Cost | $2,000.00 | $1,500.00 | $1,000.00 | $1,000.00 | $5,500.00 |
| Supervision | $44,842.08 | $31,389.46 | $17,936.83 | $13,452.62 | $107,620.99 |
| Equipment & PPE | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $4,800.00 |
| Superannuation | $7,033.93 | $7,773.74 | $7,773.74 | $7,773.74 | $30,355.15 |
| Allowances / Overtime | $6,068.72 | $6,068.72 | $6,068.72 | $6,068.72 | $24,274.88 |
| Other Costs | – | – | – | – | – |
| Total Employer Costs | $119,760.79 | $112,713.10 | $98,760.48 | $94,276.27 | $425,510.64 |
| Employer Benefit | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| Apprentice Productivity | 25% | 50% | 75% | 90% | |
| Employer Charge Out Rate | $59,880.40 | $112,713.10 | $148,140.72 | $169,697.29 | $490,431.50 |
| Government Subsidies | $2,500.00 | $2,500.00 | $2,500.00 | $2,500.00 | $10,000.00 |
| Training Cost Subsidies | $4,000.00 | $4,000.00 | $4,000.00 | $4,000.00 | $16,000.00 |
| Total Employer Benefit | $66,380.40 | $119,213.10 | $154,640.72 | $176,197.29 | $516,431.50 |
| Employee (Apprentice) Benefit | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| Salary | $58,616.06 | $64,781.18 | $64,781.18 | $64,781.18 | $252,959.62 |
| Superannuation | $7,033.93 | $7,773.74 | $7,773.74 | $7,773.74 | $30,355.15 |
| Allowances / Overtime | $6,068.72 | $6,068.72 | $6,068.72 | $6,068.72 | $24,274.88 |
| Total Employee Benefit | $71,718.71 | $78,623.65 | $78,623.65 | $78,623.65 | $307,589.65 |
| 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 | $4,000.00 | $4,000.00 | $4,000.00 | $4,000.00 | $16,000.00 |
| Total Community Cost | $6,500.00 | $6,500.00 | $6,500.00 | $6,500.00 | $26,000.00 |
| 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) | $14,654.02 | $16,195.30 | $16,195.30 | $16,195.30 | $63,239.90 |
| Total Community Benefit | $28,454.02 | $29,995.30 | $29,995.30 | $29,995.30 | $118,439.90 |
Assumptions
| Qualified Worker Salary | $89,684.16 per annum based on:
|
| Apprentice salary | Based on above award pay to simulate work on a commercial worksite with an Industry Enterprise Agreement and mandatory award allowances. |
| Apprentice off-the-job training costs | $5,500 over 4 years as government subsidised training |
| Apprentice supervision | Higher supervision requirements for higher risk work 50% – 1st year (50% of qualified worker salary costs added to employer costs) 35% – 2nd year (35% of qualified worker salary costs) 20% – 3rd year (20% of qualified worker salary costs) 15% – 4th year (15% 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 employer 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 |