This Asinta insight report gives you basic information on benchmarking employee benefits in Australia. The report covers mandatory and supplementary employee benefits for the country as well typical benefit design and cost. You’ll also learn about how different insurance policies are set up as well as onboarding and policy administration.
An example of what’s inside…
When benchmarking employee benefits in Australia for 2020, know that retirement matters most.
Superannuation, or retirement, is a mandatory benefit in Australia and is subject to legislative requirements. Employers must follow the ‘Choice of Fund’ legislation or automatically enroll eligible employees into a complying superannuation scheme.
The legislated minimum is currently 9.5% up to a maximum quarterly salary of $55,270 (i.e., contribution of $21,002.60 p.a.). Furthermore, employees can elect to salary sacrifice pre-tax dollars into the fund (up to yearly limits).
The numbers shown above are minimum requirements and serve as an illustration. Most employers base their contribution strategy on industry norms and benchmarking data, which can vary from sector to sector.
Areas that need care
- Contributions — Do the benchmarking. Are they similar to others in your sector?
- Supplier — Selecting the best supplier based on service and costs is important. This will largely depend on member numbers.
- Included insurance — Default employer plans have a basic minimum of life and disability lump sum cover. However, larger employers typically look towards higher levels of cover. This provides the benefit of scale. For example, auto cover and cheaper premiums.