By law, your employer is generally required to pay a percentage of your Ordinary Time Earnings into super. This is known as the Superannuation Guarantee (SG). If you are covered by an Enterprise Bargaining Agreement (EBA), or Australian Workplace Agreement (AWA), your employer is required to pay the greater of the amount stated in the Agreement and the SG amount.
Ordinary Time Earnings includes what you earn for your ordinary hours of work as well as things like commissions, shift loadings and allowances. It does not include overtime payments.
Your employer is legally required to pay super if you:
- earn at least $450 (before tax) in a calendar month; and
- are aged 18 or older, or if under age 18, are working more than 30 hours per week.
Employer contributions are considered ‘concessional contributions’ and count towards the annual concessional contribution limit. For more information on the concessional contribution limit, please read the Contributions Fact Sheet.
How much is the Superannuation Guarantee rate?
From July 2014, the Government increased the SG rate from 9.25% to 9.5%. It will remain at 9.5% for 7 years, increasing to 10% from July 2021 and then 12% from July 2025.
If you’re a Queensland school employee in the independent education sector, you may also be eligible for enhanced employer contributions to your super. This means that if you make an additional, personal contribution or salary sacrifice a percentage of your salary into your super, in return, your employer makes an additional contribution to your super, over and above the standard Superannuation Guarantee amount. This could really boost your retirement savings over time.
To find out more and whether you are eligible, please ask your employer.
Contributions Fact Sheet 201.16 KB PDFDownload