From 1 July 2008, you must use ordinary time earnings, as defined in the superannuation guarantee law, to calculate the minimum super guarantee contributions required for your eligible employees. This ensures all eligible employees are treated the same for super guarantee purposes.
Ordinary time earnings are generally what your employees earn for their ordinary hours of work, including:
over-award payments
bonuses
commissions
allowances.
An 'employee's ordinary hours of work' are the hours specified as his or her ordinary hours of work under the relevant award or agreement, or under the combination of such documents, that governs the employee's conditions of employment.
If the ordinary hours of work are not specified in a relevant award or agreement, the 'ordinary hours of work' are the normal, regular, usual or customary hours worked by the employee, as determined by all the circumstances of the case. This is not necessarily the minimum or maximum number of hours worked or required to be worked.
Overtime payments
Payments for work performed during hours outside an employee's ordinary hours of work are not ordinary time earnings. This is so whether the payments are calculated at an hourly rate or the employee gets a specific loading, or an annualised or lump sum component of a total salary package, that is expressly referable to overtime hours as remuneration for overtime hours worked.
However, where overtime amounts cannot be distinctly identified, the hours actually worked will be included in ordinary hours of work.
A new ruling on ordinary time earnings and salary or wages, SGR 2009/2, was issued on 13 May 2009. The date of effect of the new ruling was 1 July 2009. This ruling replaces SGR 94/4, 'Ordinary time earnings' and SGR 94/5, 'Salary or Wages', which were withdrawn from 1 July 2009.
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