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 11.5%. Therefore, contributions equal to 11.5% 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 11.5% 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 $70,000 in the current year. Then, it is a mandatory requirement for your employer to make total SG contributions equal to $8,050 (11.5% x $70,000) into your super account this year.
The SG rate history for this and previous years is shown in the table below:
| Financial Year | SG Rate |
|---|---|
| 1 July 2023 - 30 June 2024 | 11.00% |
| 1 July 2024 - 30 June 2025 | 11.50% |
| 1 July 2022 - 30 June 2023 | 10.50% |
| 1 July 2021 - 30 June 2022 | 10.00% |
| 1 July 2020 - 30 June 2021 | 9.50% |
| 1 July 2019 - 30 June 2020 | 9.50% |
| 1 July 2018 - 30 June 2019 | 9.50% |
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 Year | Income Per Quarter |
|---|---|
| 1 July 2024 - 30 June 2025 | $65,070 |
| 1 July 2023 - 30 June 2024 | $62,270 |
| 1 July 2022 - 30 June 2023 | $60,220 |
| 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 $80,000 during the September quarter in the 2024/25 year, your employer would not be required to pay $9,200 (11.5%) in SG payments to your super account, they would only need to pay $7,483 ($65,070 x 11.5%).
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.
| Quarter | Period | Payment Due Date |
|---|---|---|
| 1 | 1 July – 30 September | 28 October |
| 2 | 1 October – 31 December | 28 January |
| 3 | 1 January – 31 March | 28 April |
| 4 | 1 April – 30 June | 28 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 Type | Salary or Wages | Ordinary Time Earnings |
|---|---|---|
| Overtime hours over and above the ordinary hours stated in an award or agreement | Yes | No |
| Overtime where the ordinary hours of work are not stated in an award or agreement, or not separated from other hours | Yes | Yes |
| Casual employee shift loadings | Yes | Yes |
| Casual employee overtime payments | Yes | No |
| Commission | Yes | Yes |
| Allowance by way of unconditional extra payment (for example, the employee has complete discretion on whether to spend the allowance) | Yes | Yes |
| Expense allowance expected to be used in full | No | No |
| On-call allowance outside ordinary hours of work | No | No |
| Hourly on-call allowance for ordinary hours of work for doctors | Yes | Yes |
| Reimbursement of expenses, including travel costs | No | No |
| Payment for unfair dismissal | No | No |
| Workers' compensation - returned to work | Yes | Yes |
| Workers' compensation - not working | No | No |
| Performance or Christmas bonus | Yes | Yes |
| Bonus in respect of overtime only | Yes | No |
| Annual leave | Yes | Yes |
| Leave loading | Yes | No |
| Sick leave | Yes | Yes |
| Parental leave | No | No |
| Ancillary leave - eg jury duty | No | No |
| Long service leave | Yes | Yes |
| Termination payments - in lieu of notice | Yes | Yes |
| Termination payments - unused annual leave, long service leave or sick leave | No | No |
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, $111,500 per year – including super. In this instance, to calculate the super component you would divide your package by 111.5, then multiply by 11.5 to calculate your super or multiply by 100 to calculate your wage.
$111,500 divided by (111.5 x 11.5) = $11,500 (super component)
$111,500 divided by (111.5 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 11.5% (or 0.115).
$100,000 x 11.5% = $11,500 (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.
Our financial planning firm, Toro Wealth, specialises solely in helping 50 to 70 year-olds optimise their financial position in the lead up to retirement. If you’re interested in learning more about our service and cost, click here.
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