# Cleaner Employee Charge-Out Rate: What You Need to Bill Canonical URL: https://tidyly.au/resources/cleaner-employee-charge-out-rate Markdown URL: https://tidyly.au/resources/cleaner-employee-charge-out-rate/content.md Author: Tidyly Editorial Team Category: Pricing & quoting Published: 2026-08-02T09:00:00+10:00 Updated: 2026-08-02T09:00:00+10:00 Primary keyword: cleaning charge out rate Australia Language: en-AU Geographic focus: Australia > Calculate what to charge for employee cleaning time after Award wages, super, leave, non-billable hours, travel, payroll overhead and business margin. ## Key Takeaways - Start with the correct Award classification and employment type. - Add super and every applicable employment on-cost. - Divide by realistic billable hours, not every paid hour. - Payday Super changes cash timing from 1 July 2026. An employee's hourly wage is not the amount the customer can be charged. The business also carries super, leave, workers compensation, payroll administration, non-billable time, travel, equipment and supervision. A charge-out rate has to recover the complete employment cost before it creates any return for the business. ## Start with the current legal rate The Cleaning Services Award 2020 contains minimum rates by classification, employment type, time and day. As at 1 July 2026, the published Level 1 ordinary rates include: - full-time day rate: A$27.08 per hour - part-time day rate: A$31.14 per hour, including the Award's part-time allowance structure - casual weekday day rate: A$33.85 per hour, including casual loading ## Wage is only the first line Depending on employment type and location, the business may also carry: - 12% super guarantee on qualifying earnings under the current rules - paid annual leave and personal leave for permanent employees - workers compensation premiums - payroll software and administration - uniforms and equipment - training and supervision - travel between jobs - paid time that cannot be billed to customers - allowances, overtime and penalty rates Do not use one casual loading percentage as a substitute for costing a permanent employee properly. ## Payday Super affects cash flow From 1 July 2026, employers are required to pay super guarantee contributions with salary and wages under the Payday Super reforms. The annual cost is not created by the timing change, but the business can no longer rely on holding quarterly super liabilities in the same way. Customer payment terms and payroll timing need to support more frequent outflows. ## Calculate loaded labour cost A simplified formula is: **Loaded annual employment cost ÷ annual productive billable hours = labour cost per billable hour** Loaded annual employment cost includes the wage and relevant on-costs. Productive billable hours exclude leave, training, internal meetings, travel that is not recovered and other paid time that customers do not fund directly. ## Worked example This example is illustrative and deliberately simplified. A casual Level 1 cleaner works ordinary weekday hours at A$33.85. Super at 12% adds about A$4.06, bringing wage plus super to about A$37.91 per paid hour before workers compensation, payroll, equipment, supervision, travel and non-billable time. If only 75% of paid time is recoverable through customer work, wage plus super alone becomes: **A$37.91 ÷ 0.75 = A$50.55 per billable hour** Add A$8 per billable hour for other overhead and direct support costs, and the cost base becomes A$58.55. A 20% margin on the final sale price is not created by adding 20% to cost. To achieve a 20% gross margin on the selling price: **Required charge-out rate = cost ÷ 0.80** **A$58.55 ÷ 0.80 = A$73.19 per billable hour before GST** This is not a recommended market rate. It shows why charging A$45 for employee time can fail even when the wage appears much lower. ## Frequently Asked Questions ### Can I charge the employee wage plus 20%? That usually ignores super, leave, workers compensation, non-billable time and overhead. Calculate the complete cost first. ### Is a subcontractor rate handled the same way? No. Contractor classification, super obligations and commercial cost need separate analysis. Do not assume an ABN removes employment or super obligations. ### How often should the charge-out rate be reviewed? Review after Award changes, insurance changes, route or utilisation changes and any major shift in overhead. At minimum, check it when wage rates change each financial year. ## Summary Start with the correct Award classification and employment type. Add super and every applicable employment on-cost. Divide by realistic billable hours, not every paid hour. Payday Super changes cash timing from 1 July 2026. ## Sources - [Cleaning Services Award 2020](https://awards.fairwork.gov.au/MA000022.html) — Fair Work Ombudsman; checked 2026-08-02. - [Paying employees](https://smallbusiness.fairwork.gov.au/paying-employees) — Fair Work Ombudsman; checked 2026-08-02. - [Payday Super](https://softwaredevelopers.ato.gov.au/PaydaySuper) — Australian Taxation Office; checked 2026-08-02. ## Related Tidyly Resources - [Cleaning Services Award Pay Rates and Employment Guide](https://tidyly.au/resources/cleaning-services-award-pay-rates) - [Hiring Your First Cleaner: Employee vs Subcontractor in Australia](https://tidyly.au/resources/hiring-cleaner-employee-vs-subcontractor-australia) - [Cleaning Business Hourly Rate Calculator for Australian Sole Traders](https://tidyly.au/resources/cleaning-hourly-rate-calculator-australia) - [How to Price Weekend and Public Holiday Cleaning Work](https://tidyly.au/resources/weekend-public-holiday-cleaning-rates)