Super guarantee explained
How employer superannuation works on top of your salary.
What it is
The super guarantee (SG) is the minimum amount an employer must pay into a superannuation fund for eligible employees. The rate has been 12 percent of ordinary time earnings since 1 July 2025, and it stays at 12 percent in 2026-27.
Super is paid on top of salary
If your employment contract says $90,000 plus super, your employer pays 12 percent of ordinary time earnings, which is $10,800 a year, into your fund. That $10,800 is not part of the $90,000 taxable salary. If your contract says $90,000 including super, your take-home salary is lower: $90,000 divided by 1.12 is about $80,357, with $9,643 going to super.
| Salary excl. super | Employer super at 12% |
|---|---|
| $50,000 | $6,000 |
| $70,000 | $8,400 |
| $90,000 | $10,800 |
| $120,000 | $14,400 |
There is a maximum super contribution base each quarter, above which an employer does not have to pay SG. The ATO publishes the current figure.
What counts as ordinary time earnings
Ordinary time earnings generally include your regular wages, commissions, shift loadings and some allowances. They generally do not include overtime payments. The ATO has a full definition.
How tax treats super
Employer contributions are taxed at 15 percent inside the fund, not at your marginal rate. Super is therefore a tax-effective way to save, but you cannot normally access it until you reach preservation age and retire.
How often it should be paid
Employers must pay SG at least quarterly. Check your fund statement or your ATO online account through myGov to confirm contributions are arriving. If they are not, contact your employer first, then the ATO.
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