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DCME INDUSTRY CORE INTELLIGENCE Understand. Act. Verify.barry@dcme.com.au
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Business Truth42 core sections · 19 evidence schedulesAlert guide:RED ALERTAMBER ALERTGREEN
Wages / PAYG / Super / Productivity

Understanding Labour Cost™

Labour cost is more than the amount paid into a staff member's bank account. Real employment cost includes gross wages, PAYG, super, training, productivity and management time.
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Plain-English Industry Guidance

What the owner needs to understand.

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Gross Wage Matters

The staff member receives net pay, but the business cost starts with gross wage and includes super and other obligations.

PAYG Is Not Business Money

PAYG withheld belongs to the ATO and should be protected until paid.

Super Is Staff Money

Superannuation is part of employment cost and belongs to the employee's super fund.

Productivity Changes Profit

Two staff members on the same wage can have very different output. Labour cost must be reviewed against production, sales and customer experience.

Owner Checklist™

  • Gross wages
  • PAYG withheld
  • Super
  • Rosters
  • Productivity
  • Training
  • Sales per labour hour
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