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 | $810.40 | $922.70 | $948.00 | $982.40 | |
| Annual Salary | $42,140.80 | $47,980.40 | $49,296.00 | $51,084.80 | $190,502.00 |
| Accredited Training Cost | $2,000.00 | $1,500.00 | $1,000.00 | $1,000.00 | $5,500.00 |
| Supervision | $15,966.60 | $12,773.28 | $9,579.96 | $6,386.64 | $44,706.48 |
| Equipment & PPE | $800.00 | $800.00 | $800.00 | $800.00 | $3,200.00 |
| Superannuation | $5,056.90 | $5,757.65 | $5,915.52 | $6,130.18 | $22,860.24 |
| GTO Services and Mentoring Costs | $6,321.12 | $7,197.06 | $7,394.40 | $7,662.72 | $28,575.30 |
| Allowances / Overtime | – | – | – | – | – |
| Total Employer Costs | $72,285.42 | $76,008.39 | $73,985.88 | $73,064.34 | $295,344.02 |
| Employer Benefit | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| Apprentice Productivity | 25% | 50% | 75% | 90% | |
| Employer Charge Out Rate | $36,142.71 | $76,008.39 | $110,978.82 | $131,515.80 | $354,645.72 |
| Government Subsidies | $2,000.00 | – | – | $2,000.00 | $4,000.00 |
| Training Cost Subsidies | $4,000.00 | $4,000.00 | $4,000.00 | $4,000.00 | $16,000.00 |
| GTO Government Subsidies | $500.00 | $200.00 | $200.00 | $500.00 | $1,400.00 |
| Total Employer Benefit | $42,642.71 | $80,208.39 | $115,178.82 | $138,015.80 | $376,045.72 |
| Employee (Apprentice) Benefit | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| Salary | $42,140.80 | $47,980.40 | $49,296.00 | $51,084.80 | $190,502.00 |
| Superannuation | $5,056.90 | $5,757.65 | $5,915.52 | $6,130.18 | $22,860.24 |
| Allowances / Overtime | – | – | – | – | – |
| Total Employee Benefit | $47,197.70 | $53,738.05 | $55,211.52 | $57,214.98 | $213,362.24 |
| Community Cost | Year 1 | Year 2 | Year 3 | Year 4 | Total |
| Government Employment Subsidies | $2,500.00 | $200.00 | $200.00 | $2,500.00 | $5,400.00 |
| Government Training Subsidies | $4,000.00 | $4,000.00 | $4,000.00 | $4,000.00 | $16,000.00 |
| Total Community Cost | $6,500.00 | $4,200.00 | $4,200.00 | $6,500.00 | $21,400.00 |
| 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) | $10,535.20 | $11,995.10 | $12,324.00 | $12,771.20 | $47,625.50 |
| Total Community Benefit | $24,335.20 | $25,795.10 | $26,124.00 | $26,571.20 | $102,825.50 |
Assumptions
| Qualified Worker Salary | $63,866.40 per annum based on:
|
| Apprentice salary | Based on the Manufacturing and Associated Industries and Occupations Award rate for an engineering apprentice – Adult, over 21-year-old |
| Apprentice off-the-job training costs | $5,500 over 4 years |
| Apprentice supervision | 25% – 1st year (25% 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 | $800 per year – total $3,200 over 4 years |
| GTO Services and Mentoring | GTO services and mentoring costs include recruitment, onboarding, training administration and management, PPE costs, payroll and industrial relations, as well as mentoring the apprentice and their workplace supervisor(s), and coordinating any required workplace rotations. |
| 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 | $5,400 over 4 years as a wage support subsidy (Employer and GTO) $16,000 government-supported training costs over 4 years |
| 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 |