Demystifying Commission Structures

Dental contracts can be challenging to navigate, particularly as they operate in a way that is unique to most medical industries. The core of this difference lies within the commission structure. While it can be a bit daunting to wrap your head around numbers and percentages, it is worth taking the time to understand their complexities as they play a significant role in determining your earning potential.

Commission structures in the dental field can vary depending on your specific agreement with your employer. In most dental clinics, commissions are typically based on a 40/60 split. This means that the clinic retains 60% of the billings, while you receive the remaining 40%.

If you're an employee, you may enjoy the added advantage of a guaranteed minimum salary in addition to your commission.

However, if you're working as a contractor, your agreement will likely be commission-only, meaning there is no minimum guaranteed salary. Keep in mind that as a contractor, you are also required to pay Goods and Services Tax (GST). This means that the GST amount will come out of your 40% portion, further reducing your overall earnings.

Additionally, you may also need to make superannuation guarantee (SG) payments from your commission. To gain a better understanding of SG and how it may affect you, head to our blog post which breaks down this topic.

The Savvy Grad is here to help demystify dental contracts, if you have a question about commission structures, or need someone to look over your contract, don’t hesitate to reach out to us today. Our contract review service is the perfect place to start.