Guide to superannuation for employers

Ordinary time earnings

Ordinary time earnings are generally what your employees earn for their ordinary hours of work, including:

• over-award payments
• commissions
• shift-loading
• allowances
• bonuses.

Our checklist shows various types of payments to employees and whether or not they are considered ordinary time earnings.

Overtime payments

Payments for work performed 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 remuneration for overtime hours worked.

However, where overtime amounts can't be distinctly identified, the hours actually worked will be included in ordinary hours of work.

For examples of ordinary time earnings and salary or wages, refer to SGR 2009/2, Superannuation guarantee: meaning of the terms 'ordinary time earnings' and 'salary or wages'.

Other earnings bases From 1 July 2008, you must use ordinary time earnings (as defined in the super guarantee law) to work out the minimum required super guarantee contributions for your employees. If you use an earnings base other than ordinary time earnings to work out your super contributions and the amount you pay is less than the minimum 9%, you will have to increase this amount to meet the minimum amount required, otherwise you'll be liable for the SGC.

Employers superannuation - home

Sections within Ordinary time earnings

• Checklist for salary or wages and ordinary time earnings