More than the base salary, and how much more depends on the country. The mandatory part is about 17% in Singapore (employer CPF for a citizen or permanent resident aged 55 or below, up to a wage ceiling, plus a small levy). In Indonesia it is up to about 10% in BPJS contributions, less on higher salaries because two of them are capped, plus a religious holiday allowance (THR) of one month's wage a year. It is 12% in Australia (the super guarantee, up to an annual cap) and 3.5% in New Zealand (the KiwiSaver employer minimum since 1 April 2026). In Singapore the pass type changes the figure: an Employment Pass holder attracts no CPF, only the Skills Development Levy, while an S Pass holder attracts a S$650 monthly foreign worker levy instead. Benefits you choose to offer, equipment, insurance, upskilling and recruitment come on top of all of these.
This guide is for HR teams and recruiting agencies who need to cost an offer for a tech role in Singapore, Indonesia, Australia or New Zealand, or explain to a client why two offers with the same base salary cost different amounts.
It covers mandatory employer contributions and statutory payments only, checked against official sources on 21 October 2026. It uses illustrative salaries in each local currency and does not convert between them. If you screen with HyreTech, it ranks the shortlist against your criteria. The offer itself is costed in your payroll system, not in the ATS.
This is general information, not tax, payroll or legal advice. Rates and caps change, so we say when each figure last changed or is scheduled to. Confirm the current numbers with your payroll provider before you quote them in an offer.
The Basic Formula, and The Part That Differs by Country
The basic formula for the cost of an employee is simple:
Total cost = base salary + mandatory employer contributions, levies and statutory payments + benefits you provide + other costs of employing and equipping the person.
The first term is your offer. The third and fourth are your own decisions. The second is set by law, and it is the term that changes when the same role moves from one country to another, so this article stays on it. Indonesia's THR belongs in that second term: it is not a contribution, but the law requires it.
We leave out Australian state payroll tax and workers' compensation, New Zealand ACC levies, paid leave, insurance, equipment, upskilling and recruitment fees. Each of those matters for a full budget, and each deserves its own check with your payroll adviser. What follows is the legal floor, not the whole bill.
Singapore: CPF, The Wage Ceiling and The Pass Type
CPF contributions are payable for employees who are Singapore Citizens and Singapore Permanent Residents (SPRs). For an employee aged 55 or below earning more than S$750 a month, the CPF Board's table sets the employer share at 17% of wages and the employee share at 20%. You deduct the employee's share from their pay, so your own cost is the 17%.
The percentage applies only up to a ceiling. The Ordinary Wage ceiling has been S$8,000 a month since 1 January 2026, the last step in a series of increases, and the annual salary ceiling stays at S$102,000. Bonuses count as Additional Wages, which have their own ceiling, so cost them separately.
Two more checks apply. SPRs in their first two years have their own graduated rate tables, unless you and the employee agree to full rates. And Budget 2026 raised the rates for older employees from 1 January 2027: the employer share rises to 16.5% for those above 55 to 60 and to 13% for those above 60 to 65, with a transition offset that covers half the employer increase. Rates for employees aged 55 or below do not change.
The Skills Development Levy (SDL) sits on top. It is 0.25% of monthly wages, with a minimum of S$2 and a maximum of S$11.25, which it reaches at S$4,500 a month, and it applies to every employee working in Singapore, including foreign employees.
Work pass holders are outside CPF, but that does not make them levy-free. An Employment Pass holder attracts only the SDL, plus the pass fees of S$105 to apply and S$225 on issuance. An S Pass holder attracts the SDL and a foreign worker levy of S$650 a month, flat across tiers since 1 September 2025, which is S$7,800 a year.
These figures are for budgeting, not for choosing between candidates. The Tripartite Guidelines tell employers to "avoid using nationality as a selection criterion", and a breach of the Fair Consideration Framework can lead to a work pass debarment of at least 12 months.
The Workplace Fairness Act 2025 makes nationality a protected characteristic, and MOM aims for it to take effect at the end of 2027. An Employment Pass also brings its own entry costs: a minimum qualifying salary that rises with age, COMPASS points and, for most employers, a 14-day job advert first. Our first engineers guide covers those rules.
Indonesia: BPJS, The Wage Caps and THR
Indonesia's mandatory contributions run through two social security bodies. They are calculated on wages, which means base pay plus fixed allowances.
BPJS Ketenagakerjaan (employment programmes):
- JHT (old-age savings): 3.7% from the employer and 2% from the employee, with no wage cap (PP 46/2015).
- JKK (work accident): 0.24% to 1.74%, paid by the employer, depending on the risk group. Office-based work usually falls in the lowest band, but BPJS assigns the group for each company (PP 44/2015 and PP 82/2019).
- JKM (death benefit): 0.30%, paid by the employer (PP 44/2015).
- JP (pension): 2% from the employer and 1% from the employee on wages up to a cap that is re-indexed each March. From March 2026 the cap is about Rp11.1 million a month (PP 45/2015).
- JKP (job-loss insurance): no extra cost to the employer. It is funded by the government and by a share of the JKK you already pay (PP 6/2025).
BPJS Kesehatan (health): 4% from the employer and 1% from the employee, on wages up to Rp12 million a month (Perpres 64/2020).
Add the employer shares and you get about 10.2% for a salary below both caps, falling as the salary rises past Rp11.1 million and Rp12 million.
THR (Tunjangan Hari Raya): the religious holiday allowance is mandatory. Under Permenaker 6/2016, an employee with 12 months' continuous service receives one month's wage, and one with at least one month receives a pro-rata share. It is paid no later than 7 days before the holiday. Budget it as a thirteenth month.
Two items that older guides include are not in our numbers. The Constitutional Court ruled in September 2025 that the Tapera housing savings law must be rewritten within two years, so Tapera is left out. And the DPR passed a new Manpower Protection Law (UU Pelindungan Ketenagakerjaan) on 6 October 2026. Its number and final text were not published when we checked, and nothing published so far changes the BPJS rates or THR. Check the final text before you rely on these figures.
A foreign engineer working in Indonesia for six months or more is also covered by BPJS for JHT, JKK, JKM and health; confirm JP with BPJS for your case. The employer also pays a compensation fund levy (DKP-TKA) of US$100 a month for each foreign worker (PP 34/2021).
As in Singapore, treat this as a budget line, not a reason to prefer one candidate over another. For where Indonesian tech talent is and how to reach it, see our guide to sourcing tech talent in Indonesia.
Australia: Super Guarantee, The Annual Cap and Payday Super
Australia's super guarantee has been 12% since 1 July 2025. The ATO's rate table shows 12% for 2025-26, for 2026-27 and from 1 July 2027 onward, so there is no further legislated rise to budget for. Norfolk Island is the one exception, at 11% for 2026-27.
Three details change the calculation, all from the Treasury Laws Amendment (Payday Superannuation) Act 2025:
- A new base. From 1 July 2026 the super guarantee is 12% of an employee's qualifying earnings, which replaced ordinary time earnings as the base. For most employers the amount does not change.
- An annual cap. The maximum contribution base for 2026-27 is A$270,830 a year, replacing the quarterly A$62,500 of 2025-26. You do not have to pay super guarantee on earnings above it, so the contribution tops out at A$32,499.60 for the year. An award or enterprise agreement can still require more. The ATO indexes the base each year.
- Payday Super. Since 1 July 2026 you pay super with each payday, not quarterly. The money must reach the fund within 7 business days, or 20 business days for a new employee's first contribution. The rate did not change, but cash flow did.
Every employee is eligible, except that under-18s qualify only in a week they work more than 30 hours.
New Zealand: KiwiSaver and The Scheduled Step to 4%
New Zealand's employer cost is the smallest of the four. Inland Revenue says the default employee and matching employer KiwiSaver rates rose from 3% to 3.5% on 1 April 2026 and rise to 4% on 1 April 2028.
The employer minimum is 3.5% of the employee's gross salary or wages, and IRD describes no earnings cap. It applies to employees aged 16 to under 65 who belong to KiwiSaver or a complying fund and have contributions deducted from their pay. An employee can apply to stay at 3% for 3 to 12 months, and if they do, you may choose to lower your contribution to 3% as well. You deduct employer superannuation contribution tax (ESCT) from your contribution, so your cash cost is still the gross 3.5%.
As of October 2026, budget at 3.5% of gross pay. If an offer will still be in force in April 2028, plan for 4%.
Side by Side: What The Law Adds in Each Market
| Market | What the employer must pay | Standard employer rate | Earnings cap | Next scheduled change |
|---|---|---|---|---|
| Singapore | CPF (citizens and SPRs) and SDL (every employee); S Pass levy for S Pass holders | CPF 17% (aged 55 or below), SDL 0.25%, S Pass levy S$650 a month | CPF S$8,000 a month ordinary wages; SDL maximum S$11.25 a month | Higher CPF rates for employees above 55 to 65 from 1 January 2027 |
| Indonesia | BPJS Ketenagakerjaan, BPJS Kesehatan and THR | JHT 3.7%, JKK 0.24–1.74%, JKM 0.3%, JP 2%, health 4%, THR one month's wage a year | JP about Rp11.1 million a month; health Rp12 million a month | JP cap re-indexed each March; new Manpower Protection Law pending |
| Australia | Super guarantee | 12% of qualifying earnings | A$270,830 a year (2026-27) | Cap indexed each 1 July; rate stays 12% |
| New Zealand | KiwiSaver employer minimum | 3.5% of gross pay | None described by IRD | 4% from 1 April 2028 |
These worked examples use invented salaries and cover base salary only (no bonuses). They are not market salary data.
| Case | Base salary (a year) | Mandatory employer cost (a year) | As % of base |
|---|---|---|---|
| Singapore citizen or SPR (third year on), aged 55 or below, S$8,000 a month | S$96,000 | S$16,320 CPF + S$135 SDL = S$16,455 | 17.1% |
| Same, S$12,000 a month | S$144,000 | S$16,455 (CPF at the ceiling, SDL at the maximum) | 11.4% |
| Singapore Employment Pass holder, S$8,000 a month | S$96,000 | S$135 SDL, no CPF (plus pass fees) | 0.1% |
| Singapore S Pass holder, S$5,000 a month | S$60,000 | S$7,800 levy + S$135 SDL = S$7,935 | 13.2% |
| Indonesia, Rp25,000,000 a month, 12 months' service | Rp300,000,000 | Rp21,140,712 BPJS + Rp25,000,000 THR = Rp46,140,712 | 15.4% |
| Australia, A$150,000 | A$150,000 | A$18,000 | 12.0% |
| Australia, A$300,000 | A$300,000 | A$32,499.60 (capped) | 10.8% |
| New Zealand, NZ$120,000 | NZ$120,000 | NZ$4,200 (NZ$4,800 at 4%) | 3.5% |
The Indonesia row assumes JKK at 0.24% and the March 2026 JP cap for the whole year. Monthly, that is Rp925,000 JHT, Rp60,000 JKK, Rp75,000 JKM, Rp221,726 JP and Rp480,000 health.
Three things stand out. First, caps in Singapore, Indonesia and Australia lower the percentage for senior engineers, because the contribution stops growing above the ceiling. Indonesia's THR is the exception: it grows with salary.
Second, in Singapore the pass type changes the figure, but a pass holder is not free of on-costs: the S Pass levy is a flat S$7,800 a year, and an Employment Pass comes with a minimum qualifying salary and its own fees. Third, a salary quoted in S$, Rp, A$ or NZ$ is not comparable across countries without conversion, and each figure also sits on a different base of other costs.
Cost The Role in The Brief, Confirm it After You Choose
Cost the role before you screen, not the candidate after. Add one line to the role brief for each market you hire in: the base range, the mandatory on-cost at that range, and benefits. In Singapore, budget at the CPF rate.
At a typical tech salary it is the highest of the three, so the budget holds whoever you hire. Then screen against the role you can actually afford, and apply the same budget to every candidate. On-costs belong in the budget, not in the comparison between candidates.
Once you have chosen the person, confirm their status with a right-to-work check, cost the actual offer in payroll, and plan the start date around their notice period.
The same calculation matters when an agency is involved. Some agencies charge a percentage of an annual package that includes employer CPF and guaranteed bonuses; our first engineers guide quotes one Singapore firm's published terms. So on-costs can raise the fee as well as your payroll budget.
One disclosure matters here. HyreTech screens and tracks applicants against the criteria you set. It does not calculate payroll costs, so the numbers in this article belong in your payroll system or your adviser's workbook, not in the ATS.
A practical habit is to state in the role brief whether the pay range is before or after employer contributions. For the ad itself, see our guide to writing job ads for Singapore, Australia and New Zealand.
Screen Against The Role You Can Afford
Teams that cost a role late often find the budget does not fit after they have already interviewed. Put the cost line in the brief first, then screen.
To screen candidates for a role you have costed: Start free. The free plan includes one active role and 20 credits, and one credit analyses one resume. Paid plans are priced in local currency on the pricing page.
If you hire across Singapore, Indonesia, Australia and New Zealand and want to map where screening fits your process: Book a demo and we will walk through it with you.
FAQ
How much does remote engineering staffing cost in Singapore?
It has three parts. The first is the salary. The second is the mandatory on-cost of employing the engineer, usually set by the country where they are employed and work: in Singapore, 17% employer CPF up to S$8,000 a month plus the Skills Development Levy for a citizen or permanent resident, or the levy and pass costs for a pass holder. The third is the fee of whoever finds or employs the engineer: an agency placement fee, which one published Singapore rate card starts at 25% of the annual package, or a monthly service fee if a staffing provider employs the engineer for you.
Can an AI ATS like HyreTech tell us what a hire will cost on top of salary?
No. HyreTech scores and tracks applicants against the criteria you set. It does not calculate payroll costs. Cost the role in the brief, then cost the actual offer in your payroll system once the candidate's status is known. This article's tables give a starting estimate of the mandatory part for each market.
What is the basic formula for calculating employee cost?
Total cost equals base salary, plus mandatory employer contributions, levies and statutory payments, plus the benefits you provide, plus other costs such as equipment, insurance, upskilling and recruitment. The mandatory part is CPF and the Skills Development Levy in Singapore, BPJS contributions and THR in Indonesia, the super guarantee in Australia, and the KiwiSaver employer minimum in New Zealand.
How much does it cost an employer per employee?
There is no single number, because it depends on the country, the salary and what you add. For the mandatory part alone: in Singapore, 17% of wages up to S$8,000 a month plus the levy for a citizen or permanent resident aged 55 or below. In Indonesia, about 10.2% in BPJS contributions below the caps plus one month's wage as THR. In Australia, 12% up to A$270,830 a year. In New Zealand, 3.5% of gross pay. Other costs come on top.
Do employers pay CPF for Employment Pass or S Pass holders?
No. CPF is payable for Singapore citizens and permanent residents only. The Skills Development Levy applies to every employee, an S Pass holder also attracts a foreign worker levy of S$650 a month, and an Employment Pass has application and issuance fees. These are budgeting facts, not grounds for choosing between candidates: the Tripartite Guidelines tell employers to avoid using nationality as a selection criterion.
What does BPJS cost an employer in Indonesia?
For BPJS Ketenagakerjaan: 3.7% for JHT, 0.24% to 1.74% for JKK depending on the risk group, 0.30% for JKM and 2% for JP on wages up to about Rp11.1 million a month. For BPJS Kesehatan: 4% on wages up to Rp12 million a month. That is about 10.2% for a salary below both caps. THR of one month's wage a year comes on top.
Do contribution caps mean senior engineers cost proportionally less?
In Singapore, Indonesia and Australia, yes. CPF stops at a monthly ceiling, Indonesia's JP and health contributions stop at monthly caps, and the super guarantee stops at an annual cap, so the percentage falls as salary rises above them. Indonesia's THR does not fall, because it is one month's wage at any salary. In New Zealand, IRD describes no cap on the 3.5%.
Can I rely on these percentages to budget an offer?
Use them as a starting estimate, not a final number. Rates change on schedule: Singapore's CPF rates for employees above 55 to 65 rise in January 2027, Indonesia re-indexes the JP cap each March and has a new Manpower Protection Law pending, Australia indexes its contribution cap each July, and New Zealand moves to 4% in April 2028. The examples also use base salary only and ignore bonuses and other levies. Confirm with a payroll adviser, since no tool, ours included, can certify the cost for you.