How Much Super Should I Be Paid by My Employer?

how much super should i be paid

When it comes to your superannuation, one of the very first things you should understand is how much super you should be paid.

The contributions made by your employer into your super account form part of your overall salary package and you want to make sure you’re being paid the correct amount, right?

So, let’s dive into how much super you should be paid and when it needs to be paid into your account.

How Much Super Should I Be Paid?

The amount of superannuation you should be paid is calculated as a percentage of your ordinary time earnings.

Your employer is required to pay contributions into your superannuation account on top of your salary or wage. These contributions are referred to as Superannuation Guarantee (SG) contributions.

The current SG rate is 10%. Therefore, contributions equal to 10% of your wage or salary will need to be paid by your employer into your super account.

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However, not all salary packages are created equal. While it is true that an employer must pay at least 10% in SG contributions, there are some employers or employment industries that pay a higher super contribution component to employees, based on an employment agreement or industry agreement.

Example: How Much Super Should I Be Paid?

Let’s say you earn $75,000 in the current year. Then, it is a mandatory requirement for your employer to make total SG contributions equal to $7,500 (10% x $75,000) into your super account this year.

The SG rate history for this and previous years is shown in the table below:

Financial YearSG Rate
1 July 2021 - 30 June 202210.00%
1 July 2020 - 30 June 20219.50%
1 July 2019 - 30 June 20209.50%
1 July 2018 - 30 June 20199.50%

Maximum Contribution Base

It should be noted that an employer is only required to pay SG payments on ordinary time earnings up to the maximum contribution base.

The maximum contribution base is the maximum quarterly income earned by an employee that an employer must pay SG contributions on. An employer is not required to pay SG on any income earned above the maximum contribution base; however, the employer is permitted to, if they so wish.

The maximum contribution base is shown in the table below:

Financial YearIncome Per Quarter
1 July 2021 - 30 June 2022$58,920
1 July 2020 - 30 June 2021$57,090
1 July 2019 - 30 June 2020$55,270
1 July 2018 - 30 June 2019$54,030

For example, if you were to earn $70,000 during the September quarter in the 2021/22 year, your employer would not be required to pay $7,000 (10%) in SG payments to your super account, they would only need to pay $5,892 ($58,920 x 10%).

How Often Should My Super Be Paid?

Your employer must pay superannuation guarantee payments into your super account on at least a quarterly basis. However, many employers will simply make SG contributions into your super account at each pay period, at the same time your salary is being paid into your bank account.

The table below shows the quarterly SG payment periods for employers. SG payment due dates are applied for each quarter.

QuarterPeriodPayment Due Date
11 July – 30 September28 October
21 October – 31 December28 January
31 January – 31 March28 April
41 April – 30 June28 July

What Are Ordinary Time Earnings?

As mentioned, superannuation guarantee payments are required to be paid on all forms of ordinary time earnings. SG payments are not required to be made on remuneration that is not considered ordinary time earnings.

This table details what is and what is not ordinary time earnings.

Payment TypeSalary or WagesOrdinary Time Earnings
Overtime hours over and above the ordinary hours stated in an award or agreementYesNo
Overtime where the ordinary hours of work are not stated in an award or agreement, or not separated from other hoursYesYes
Casual employee shift loadingsYesYes
Casual employee overtime paymentsYesNo
CommissionYesYes
Allowance by way of unconditional extra payment (for example, the employee has complete discretion on whether to spend the allowance)YesYes
Expense allowance expected to be used in fullNoNo
On-call allowance outside ordinary hours of workNoNo
Hourly on-call allowance for ordinary hours of work for doctorsYesYes
Reimbursement of expenses, including travel costsNoNo
Payment for unfair dismissalNoNo
Workers' compensation - returned to workYesYes
Workers' compensation - not workingNo No
Performance or Christmas bonusYesYes
Bonus in respect of overtime onlyYesNo
Annual leaveYesYes
Leave loadingYesNo
Sick leaveYesYes
Parental leaveNoNo
Ancillary leave - eg jury dutyNoNo
Long service leaveYesYes
Termination payments - in lieu of noticeYesYes
Termination payments - unused annual leave, long service leave or sick leaveNoNo

How To Calculate Super From Total Package

There are two ways to calculate superannuation from your total employment package. The calculation will depend on whether your package is inclusive of super or plus super.

For example, to protect against SG rate increases over time, many employers will offer a salary package inclusive of super, such as say, $110,000 per year – including super. In this instance, to calculate the super component you would divide your package by 110, then multiply by 10 to calculate your super or multiply by 100 to calculate your wage.

$110,000 divided by (110 x 10) = $10,000 (super component)
$110,000 divided by (110 x 100) = $100,000 (wage component)

Some employment agreements might state your salary package as being a wage, plus super – for example, $100,000 per year, plus super. In this case, to calculate your super component, you would simply multiply your wage by 10% (or 0.10).

$100,000 x 10% = $10,000 (super component)

Superannuation Guarantee Contribution (SGC) Calculator

The calculator below can help you determine the amount of SG contributions that you should be eligible for, based on your salary and the current SG contribution rate.

 

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Thanks for stopping by - Chris