Post - Superannuation!

Did you know, under the Superannuation Guarantee (“SG”), employers are obligated to pay superannuation contributions of at least 11.5% of an employee's ordinary time earnings?

More specifically, an employer is required to pay superannuation contributions when an employee is:

- over 18 years; or

- under 18 years and works over 30 hours a week.

It is important to note that ordinary time earnings (“OTE”) is the gross amount employees earn for their ordinary hours of work. OTE includes:

- over-award payments;

- commissions;

- shift loading;

- annual leave loading;

- some allowances; and

- bonuses.

Additionally, it is important to note that the superannuation guarantee will increase to 12% on 1 July 2025.

Moving forward, an important factor that employers should consider is whether an employee’s remuneration package will be inclusive or exclusive of superannuation.

If an employee’s current remuneration package is inclusive of superannuation, then this may mean a reduction in their take-home pay.

However, if an employee’s current remuneration package is exclusive of superannuation, then the employee will need to be paid 11.5% superannuation with no effect on their take-home pay.

For further information or assistance, contact the team at HR Business Assist today!

HR Business Assist | P 1300 138 551 | E support@hrbusinessassist.com.au