How Much Super Should I Be Paid? Your Guide To Superannuation Obligations In Australia

Superannuation is a core part of working life in Australia. Whether you’re running a business, starting a new venture, or working in a job, getting super right matters for your financial future and for legal compliance.

If you’re an employer, staying on top of superannuation obligations helps you avoid penalties and build trust with your team. If you’re an employee, you might be asking a simple question with a few moving parts: how much super should I be paid?

In this guide, we’ll explain how super works, the current Superannuation Guarantee rate, what counts towards super, and practical steps so you can confidently pay (or receive) the right amount.

What Is Superannuation And Why It Matters

Superannuation (or “super”) is compulsory retirement savings. In most cases, employers must pay a percentage of an employee’s ordinary time earnings (OTE) into a complying super fund.

These contributions are invested and preserved until retirement or another condition of release. For businesses, correct and timely payments aren’t just good practice - they’re required by law, and failing to comply can trigger penalties, interest and reputational damage.

In Australia, the rules are set primarily by the Superannuation Guarantee (SG) regime. The SG sets the minimum percentage of OTE you need to contribute for eligible workers.

What Is The Current Superannuation Guarantee Rate?

From 1 July 2024, the Superannuation Guarantee rate is 11.5%.

This means eligible employees should receive super contributions equal to at least 11.5% of their OTE for each pay period. The SG rate is scheduled to increase over time, so it’s important to keep an eye on changes to stay compliant.

How Much Super Should I Be Paid (And How Is It Calculated)?

In most cases, employees - whether full-time, part-time or casual - should receive a minimum of 11.5% of their ordinary time earnings. The key is understanding what counts as OTE and what doesn’t.

Ordinary Time Earnings (OTE) Explained

OTE generally includes what you earn for your ordinary hours of work. This usually covers base salary or wages, shift loadings, most allowances for ordinary hours, commissions and many bonuses.

Items tied to overtime hours are generally excluded. To dive deeper into what is and isn’t captured, see our guide to ordinary time earnings.

Simple Examples

• If your base salary is $1,200 per week (all ordinary hours), your minimum super should be $138 per week (11.5% of $1,200).
• If you earn $1,000 in base wages plus $200 in commissions in a week, your OTE is typically $1,200, and your minimum super should be $138.

Always review how your pay is structured. The right calculation depends on which parts of your pay are OTE.

“Plus Super” Vs “Package Including Super”

Employment offers are commonly presented either as base salary “plus super” or as a “total remuneration package” (which includes super). If the offer says “$90,000 plus super,” super is paid on top of that base. If it says “$90,000 including super,” the 11.5% must be carved out of that package to ensure you still meet the minimum.

Clear terms in your Employment Contract help avoid confusion about whether super is paid on top or included in the package.

Who Is Entitled To Super And When Are Payments Due?

Most workers in Australia are entitled to super if they’re employees for SG purposes, which includes:

• Full-time employees
• Part-time employees
• Casual employees
• Some contractors (if they’re paid wholly or principally for their labour, even if they invoice with an ABN)

The old minimum monthly earning threshold has been removed, so small amounts of pay can still attract super if the worker is otherwise eligible.

What About Contractors?

This is a common pain point. If a contractor is engaged mainly for their labour and performs the work personally, they may be treated as an employee for super purposes. The safest approach is to assess the engagement carefully, use a clear Contractor Agreement, and get advice if the arrangement is borderline.

How Often Do You Need To Pay?

At a minimum, employers must pay super quarterly by the statutory due dates:

• Q1: 1 July – 30 September (due by 28 October)
• Q2: 1 October – 31 December (due by 28 January)
• Q3: 1 January – 31 March (due by 28 April)
• Q4: 1 April – 30 June (due by 28 July)

Many businesses now pay super on a monthly or per-pay-cycle basis to streamline payroll and reduce the risk of missing deadlines. If you miss a due date, the superannuation guarantee charge (SGC) can apply, which includes the unpaid super, interest and administration fees.

Common Pay Items: Do They Attract Super?

Not all payments are treated the same way. Here are common inclusions and exclusions to consider in line with the OTE rules.

Bonuses

Many bonuses are generally included in OTE, especially if they relate to ordinary hours or performance outcomes. If you pay or receive bonuses, check whether they should attract super; our guide on super on bonuses breaks down typical scenarios.

Commissions

Commissions are commonly included in OTE because they’re tied to ordinary hours and performance rather than overtime. This means they typically attract super at the SG rate.

Leave Loading

Annual leave loading is generally included in OTE unless you can clearly establish that it is demonstrably and specifically tied to overtime. In practice, most leave loading will attract super. For context on how leave loading works, see our article on annual leave loading.

Overtime Payments

Genuine overtime - i.e. hours worked outside ordinary hours - is usually excluded from OTE. Be careful to distinguish shift loadings (generally included) from overtime loadings (generally excluded).

Allowances

Allowances connected to ordinary hours (e.g. a first aid allowance) are often included in OTE. Reimbursements (e.g. out-of-pocket expenses) are not OTE.

Termination Payments

Some termination-related payments do not attract super, while others might. For example, unused annual leave paid out on termination is usually excluded from OTE. For more detail, see our guides on super on termination payments and payment in lieu of notice and super.

Practical Steps To Stay Compliant (For Employers And Employees)

Whether you’re paying or receiving super, these steps will help you stay on track.

1) Confirm The Applicable SG Rate

Make sure your payroll settings reflect the current 11.5% SG rate (from 1 July 2024). Keep an eye on announced increases so your calculations remain accurate.

2) Identify Ordinary Time Earnings

Work out which pay items are included in OTE and which are excluded. This single step underpins accurate super calculations. If you’re unsure about a borderline item, review your position against OTE rules and keep records of your reasoning.

3) Assess Worker Eligibility (Employees And Contractors)

Check whether each worker is entitled to super under the SG rules, including contractors engaged mainly for their personal labour. Clear contracts, such as a thoughtful Contractor Agreement, reduce uncertainty and help set expectations.

4) Clarify Contracts And Policies

Spell out how remuneration works (including whether super is paid on top or included in a package) in your Employment Contract. It’s also a good idea to include a simple superannuation policy in your Staff Handbook so new starters know how super is handled, how to choose a fund and when contributions are paid.

5) Pay On Time And Keep Records

Paying at the same time as payroll (weekly, fortnightly or monthly) helps avoid the stress of quarterly deadlines. Keep evidence of contributions, fund details and communications - these records are essential if questions arise later.

6) Audit Regularly As You Grow

As your team or pay structures evolve, revisit your super processes. A simple internal audit (e.g. quarterly) can catch mistakes early and prevent underpayments.

7) Know When To Get Help

Complex remuneration structures, unusual allowances or mixed contractor arrangements benefit from tailored advice. Getting guidance early is far more efficient than fixing a problem after the fact.

Important Note On Tax

Superannuation interacts with taxation and payroll settings. Sprintlaw provides legal guidance, not tax or accounting advice. For tax-specific questions (such as deductibility, contribution caps or fund selection), speak with your accountant or tax adviser.

Employees: What If I Think My Super Is Missing?

Start by checking your payslip and super fund transaction history. If something looks off, raise it with your employer - many discrepancies are administrative and easily corrected once identified.

If the issue isn’t resolved, you can escalate the matter to the relevant authorities. Keep copies of your payslips, contracts and correspondence, as these documents will help demonstrate what you should have been paid.

Employers: What If We’ve Underpaid?

Act quickly. Correct errors as soon as you discover them and review your processes to prevent repeat issues. Voluntary correction and a transparent approach generally lead to better outcomes than waiting for a complaint or audit.

Quick FAQs

Does Everyone Get Super In Australia?

Most people working in Australia are entitled to super if they’re employees for SG purposes. This can include temporary residents and certain contractors engaged for their labour.

Can We Pay Above The Minimum?

Yes. Some employers contribute more than the minimum SG rate as part of a benefits package. Make sure any additional contributions are clearly documented in contracts or policies.

Is Super Paid On Overtime?

Generally, no - genuine overtime is usually excluded from OTE. The distinction between overtime and shift loadings is important for accurate calculations.

Could I Be Backpaid If Super Was Missed?

Yes. If you’ve been underpaid super, backpay (plus interest and fees) may be payable. Act promptly and retain your records.

Key Takeaways

• The Superannuation Guarantee rate is 11.5% from 1 July 2024, applied to ordinary time earnings for eligible workers.
• OTE typically includes base pay, shift loadings, commissions and many bonuses; genuine overtime is generally excluded.
• Leave loading is usually included in OTE unless it’s clearly tied to overtime; unused leave paid at termination is usually excluded.
• Super must be paid at least quarterly by law, but many employers pay monthly or per pay cycle to stay on top of obligations.
• Some contractors are entitled to super if they’re paid mainly for their labour, so use clear contracts and assess eligibility carefully.
• Document your approach in your Employment Contract and Staff Handbook, keep good records, and audit regularly as you grow.
• For nuanced items like bonuses or termination payments, review the rules and refer to resources on super on bonuses, termination payments and OTE.

If you’d like a consultation on your superannuation obligations or support with employment contracts and payroll compliance, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.