If you’re in the workforce, chances are you’ve thought about how much super your employer is paying you. It’s important to make sure you’re being paid the correct amount – after all, your super is your money and can play a big role in how financially secure you are in your retirement. Below we’ll take a look at the superannuation rate and how to know if you're eligible to receive super.
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- Under legislation, all employers are generally required to pay their employees a minimum of 10% of the employee’s earnings into super, if the employee earns $450 or more in salary or wages in a calendar month.
- The Superannuation Guarantee rate is set to rise to 12% from 1 July 2025.
- Employers must pay more than 10% if you are covered by an award or employment agreement that specifies a higher super contribution.
What is the Superannuation Guarantee rate?
Under the Super Guarantee (SG) legislation, all employers are required to make a contribution on behalf of each of their eligible employees to the employee’s super fund.
Employers must pay a minimum of 10% of their employee’s ordinary time earnings into the employee’s super. Some employers make these compulsory super contributions with each pay cycle, while other employers pay at various intervals throughout the year. At a minimum, however, super contributions are required to be paid at least quarterly.
If you are covered by an award or employment agreement that specifies a higher super contribution rate than 10%, your employer will need to pay you this higher amount.
Am I eligible for Super Guarantee payments from my employer?
There are a few key requirements before an employer is required to pay Super Guarantee payments into your super:
- You need to be paid $450 or more (before tax) in salary or wages in a calendar month
- You are 18 years or more
You can work full-time, part-time or casual. Employees on the following types of leave are also eligible to be paid SG:
- Paid sick leave
- Long service leave
- Annual leave
- Workers compensation (in some cases)
Under the legislation, you won’t be eligible for Super Guarantee contributions from your employer if you are:
- Under 18 years of age and working 30 hours or less a week
- Earning less than $450 in a calendar month
- Away from work and not being paid, such as unpaid parental leave or leave without pay
Is the Super Guarantee rate due to increase?
On 1 July 2021, the Super Guarantee rate increased to 10%. It is then legislated to continue to increase annually until it reaches 12% on 1 July 2025.
|1 July 2020||9.5%|
|1 July 2021||10%|
|1 July 2022||10.5%|
|1 July 2023||11%|
|1 July 2024||11.5%|
|1 July 2025||12%|
For more on the Super Guarantee rate and how it affects you as an employee, visit the ATO website.
If you’re thinking of making additional contributions to your super, on top of the SG payments your employer is already making, read our article on 6 ways to grow your super balance.
Before joining Australian Retirement Trust, consider the potential loss of insurance and other benefits that you may have in your other funds. The information contained on this website is general information only and does not take into account your individual objectives, financial circumstances or needs. You should consider your own objectives, financial circumstances and needs, before making a decision about the financial product. Also, think about where your future employer contributions will be paid. You should consider the Product Disclosure Statement before deciding whether to acquire, or continue to hold the product. For more information or financial advice from Australian Retirement Trust, call us on 13 11 84.